Shopify on Monday announced a deal with retail giant Target that will enable its merchant customers to sell products at Target's online marketplace. Shopify stock initially rose on the news but closed down.
Canada-based Shopify sets up e-commerce websites for small businesses as well as big brands. Additionally, it partners with others to handle digital payments and shipping.
Minneapolis-based Target and Shopify didn't disclose financial terms of the deal.
Shopify Stock Near 50-Day Line
"Partnering with Target helps high-growth brands like Caden Lane and True Classic reach millions of new loyal customers and take their business to the next level," said Shopify President Harley Finkelstein, in the news release.
Shopify in June 2020 forged a similar online marketplace deal with Walmart.
On the stock market today, Shopify stock fell 1.1% to close at 64.31.
After plunging in early May on first quarter results and management's guidance, Shopify stock has clawed back to its 50-day moving average. Overall, SHOP stock has retreated 13% in 2024.
Also, Shopify in 2023 sold its delivery and logistics business to Flexport. That eased Wall Street worries over rising capital spending.
Meanwhile, Shopify stock holds a Relative Strength Rating of only 29 out of a best-possible 99, according to IBD Stock Checkup.
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