CFO says Shopify sees no slowdown in US demand despite Trump's tariff hikes
Shopify Inc. has eclipsed Royal Bank of Canada to become the country’s most valuable publicly traded company on Wednesday, following second-quarter results that beat expectations and sent its share price soaring 21.5 percent.
Reuters report that the company’s market capitalisation reached roughly $277bn, driven by 31 percent year-over-year revenue growth and a strong forecast for the third quarter.
The rally helped push the S&P/TSX composite index up 350.79 points, or 1.3 percent, to a record high of 27,920.87 on Wednesday.
Shopify shares held their gains through Thursday, closing at $207.56—up 19.75 percent over five days—according to end-of-day market data for Thursday.
The sharp increase began on Wednesday, following Shopify’s earnings release, and remained largely steady despite broader market weakness.
According to CNBC, Shopify’s second-quarter revenue rose to US$2.68bn, exceeding analyst expectations of US$2.55bn.
The company forecast revenue growth in the “mid-to-high twenties percentage rate” for the third quarter, compared with analyst projections of 21.7 percent.
Gross merchandise sales (GMS) climbed 29 percent to US$87.8bn, beating estimates of US$81.5bn.
In an investor call, Shopify CFO Jeff Hoffmeister said the company had accounted for possible tariff impacts in its outlook, but “those did not materialize.”
He noted that Shopify saw “no drops in US demand, whether inbound, outbound or local,” and that the market had accelerated during the second quarter.
Shopify President Harley Finkelstein echoed the sentiment in an interview with CNBC, stating, “The millions of stores on Shopify are doing really, really well.”
Bloomberg reported that growth accelerated across all regions, with Europe seeing a 42 percent increase in gross merchandise volume (GMV) on a constant currency basis.
Shopify also launched new AI tools this quarter, aiming to expand its platform’s capabilities and attract a wider range of merchants.
