June 18, 2024

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Shopify, Etsy, Wayfair rally after record Black Friday spending online

2 min read

An Amazon worker moves a package onto a cart at an Amazon delivery station in Alpharetta, Georgia, on Nov. 28, 2022.

Justin Sullivan | Getty Images

Shoppers turned out in full force on Thanksgiving and over the Black Friday weekend, largely shunning physical stores for the comfort of clicking “buy online” from their couches.

Black Friday online spending reached a record $9.8 billion in the U.S., up 7.5% from a year earlier, according to Adobe Analytics. Online sales on Cyber Weekend, the days between Black Friday and Cyber Monday, surged 7.7% to $10.3 billion. Cyber Monday sales are expected to reach up to $12.4 billion, making it the biggest U.S. online shopping day of the year, according to Adobe.

The strong showing proved to be a boon for many e-commerce-focused retailers, and their stocks surged Monday as investors cheered the early results. Shares of Etsy and Wayfair closed up about 3% and 7%, respectively, while Amazon stock climbed 0.6%. Shopify shares closed up almost 5% in afternoon trading after the company, which provides software for online retailers, said merchants notched a record $4.1 billion in sales.

Analysts and investors are closely watching sales during the five-day period beginning Thanksgiving Day and ending on Cyber Monday as a barometer for the overall holiday shopping season. The National Retail Federation, a trade group, expects shoppers will spend more this year than last year, with sales in November and December projected to rise 3% to 4% year over year. Even as inflation has cooled, grocery prices are still high, and the resumption of student loan payments has eaten into some consumers’ holiday budgets.

Against that backdrop, budget-conscious consumers have turned to buy-now-pay-later features as a way to stretch their wallets. Buy-now-pay-later services such as Affirm, Klarna and Afterpay drove $5.9 billion in online spend between Nov. 1 and Nov. 23, up 13.4% from last year, according to Adobe. Shares of Affirm closed up almost 12%…

2023-11-27 16:22:00

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