Shopify Stock Rises 14% On Nasdaq 100 Inclusion
The stock of Canadian e-commerce company Shopify (SHOP) rose 14% on news that it is being added to the Nasdaq 100 index in the U.S.
Nasdaq announced that Shopify will replace U.S. software company MongoDB (MDB) on the index staring May 19 of this year.
Shopify’s stock already trades on the Nasdaq Composite index, as well as the Toronto Stock Exchange.
The Nasdaq 100 is a stock market index made up of the 100 largest non-financial companies listed on the technology-laden Nasdaq Composite exchange.
Inclusion in the Nasdaq 100 should give Shopify’s stock a boost as mutual funds and exchange-traded funds (ETFs) that track the index’s performance are required to buy the company’s shares.
Shopify recently reported strong quarterly financial results that showed 27% year-over-year revenue growth.
Management at Shopify said they have yet to experience a decline due to Canada’s trade conflict with the neighbouring U.S.
Earlier this year, Shopify listed a co-headquarters in New York City along with its headquarters in Ottawa in regulatory fillings, leading to speculation the company is moving closer to the U.S.
Shopify’s Nasdaq-listed shares have declined 3% this year to trade at $104.34 U.S. per share.
