BigCommerce Shares Soar on Instagram Partnership

Author: Tim Phillips

Date: May 28, 2024

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Storefront software and applications provider BigCommerce Holdings Inc (NASDAQ: BIGC), known as the smaller competitor to leading provider Shopify Inc (NYSE: SHOP), saw its share price surge 36.9%.

The company, having only recently IPOed at the beginning of August, announced a partnership with Facebook-owned Instagram that will allow eligible merchants to sell their products on the social media platform.

With its e-commerce checkout service available on Instagram, BigCommerce is following in the footsteps of Shopify, which announced its own partnership with Facebook Inc (NASDAQ: FB) last month on the new storefronts for merchants named “Facebook Shops”.

BigCommerce, which has a market cap around one-twentieth that of Shopify, is looking to cash in on the e-commerce trend by helping merchants get their goods in front of more eyeballs.

Although it has a far smaller number of merchants on its platform, BigCommerce could provide an alternative route into the e-commerce space for investors who feel Shopify is currently too expensive.

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About the Author: Tim Phillips