• Shopify stock took a tumble Monday morning.
  • New internet retail sector competitive threats may be the cause.

What’s going on with Shopify stock

On Monday, stock in Shopify (NYSE:SHOP) fell considerably, dropping as much as 16.3%. The stock remained down by 11.6% at 1:03 p.m.

The news that competition is increasing in the online retail industry pushed the e-commerce tools provider Shopify’s stock lower.

Why we care

Reports published on Sunday offer further details about Google‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) intention to expand its e-commerce presence.

Google announced Last Mile Fleet Solutions, a set of solutions meant to assist business’s guarantee that shipments are “fast, reliable, and low cost,” last week. The software helps fleet operators control the delivery experience from order to doorstep and optimize the shipment at each stage of the process. That includes recording correct delivery addresses, route planning, efficient driver navigation, tracking the progress of goods shipments, and assessing overall fleet performance.

Google Maps Platform is the basis of the On-demand Rides & Deliveries solution, which provides ride-hailing and on-demand delivery companies with various tools, such as driver dispatch, in-app navigation, and real-time delivery status.

By expanding on its existing platform, Google is broadening the market it serves.  Therefore, making further inroads into the fast-growing area of e-commerce delivery and shipment. According to data published in a blog post, “e-commerce shipments are on track to double by 2026,” and 90% of US consumers expect free two-to-three-day shipping.

What now

It’s worth noting that Shopify’s closing price on Friday varies depending on specific financial data feeds. As a result, while some sources show Shopify stock being essentially flat for the day, others indicate it has dropped by more than 10%.

Shopify shares rose last week. The software-as-a-service (SaaS) stock closed last Friday at $780, increasing by more than 52% over four market days. Given its quick rise, there’s also likely to be some profit-taking today.

Shopify’s stock price, however, is still down nearly 60% from its highs attained last November. Shopify’s stock price today might appear to be a bargain in five years. Now is a great time for investors who have been seeking an entry point.

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