Shopify (NYSE: SHOP) shareholders lost ground to a falling market on Friday. Shopify joined other e-commerce stocks in the strong rally earlier in the week. Shopify's stock tends to see amplified moves -- in both directions -- when sentiment shifts about the wider economy.
The European Commission said on Friday e-commerce business Shopify has committed to put in place improvements aimed at making online shopping safer for customers, according to a statement. Shopify committed to change the design of its templates to include fields for company information and contact details, to provide clear guidance to traders on relevant EU consumer law and to provide company details about any EU trader when requested by any national consumer authority. The company also agreed to take down web shops in breach of EU consumer law, as well as to provide the relevant company details.
Shares of Shopify (NYSE: SHOP) rose as much as 15.4%, Etsy (NASDAQ: ETSY) jumped as high as 16.6%, and Coupang (NYSE: CPNG) surged as much as 27.8%, according to data provided by S&P Global Market Intelligence. There was no company-specific news pushing these stocks higher, but shares of each of these companies have cratered since late last year, so any positive news is reason enough for investors to go bargain hunting. The latest report on manufacturing, combined with the most recent jobs data, acted as a catalyst, causing investors to wade back in and buy up shares of these beaten-down e-commerce stocks.