Like DocuSign and Zoom, Shopify's (NYSE:SHOP) growth is being fueled by powerful long-term trends. Retail sales are shifting online at an accelerated pace due in part to the COVID-19 crisis. Shopify helps small -- and, increasingly, large -- businesses build and grow their online operations. And it's perfectly positioned to ride the global e-commerce boom.
Shopify's first-quarter revenue surged 47% to $470 million, while its adjusted net income soared 214% to $22 million. Merchants are flocking to Shopify's e-commerce platform, and many are growing their sales at a healthy clip. Shopify's gross merchandise volume -- essentially, the total dollar amount of sales merchants made on its platform -- jumped 46% to $17.4 billion in the first quarter.
A couple of blockbuster deals should help to boost Shopify's growth. In May, Shopify partnered with Facebook (NASDAQ:FB) to help merchants create Facebook Shops, or customized storefronts on the social media titan's namesake platform and Instagram. Shopify will power Facebook's checkout features, and also provide merchants with tools to manage their inventory, orders, and fulfillment.
Shopify also recently formed a partnership with retail colossus Walmart (NYSE:WMT). The deal will let 1,200 of Shopify's highest-performing merchants start selling their wares on Walmart.com. The partnership will help Walmart strengthen its third-party marketplace, while also helping Shopify give its best merchants an even larger market opportunity. If the partnership goes well -- and all signs suggest that it will -- Walmart will likely open up its marketplace to more of Shopify's more than 1 million merchants. That could propel the e-commerce star's stock to even greater heights in the months and years ahead.
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