Shopify Soars 5.7% on Nasdaq-100 Inclusion, Q1 Revenue Up 26.8%

On May 12, 2025, Shopify's stock surged by 5.7% in pre-market trading, reflecting a strong start to the day's trading session.

Shopify is set to be included in the Nasdaq-100 index starting May 19, 2025. This inclusion underscores Shopify's growing influence in the tech and e-commerce sectors, potentially attracting more investors and enhancing its market presence.

Shopify reported its fiscal first-quarter results, with revenue growing by 26.8% to $2.36 billion, surpassing analyst estimates of $2.33 billion. However, the adjusted earnings per share (EPS) of $0.25, although up 25%, fell short of the expected $0.26. Gross merchandise volume (GMV) increased by 22.8% to $74.75 billion, while merchant solutions revenue rose by 28.9% to $1.74 billion.

Analysts from Piper Sandler and Goldman Sachs provided mixed reactions to the earnings report. Piper Sandler maintained a Neutral rating with a price target of $104, while Goldman Sachs kept a Buy rating but lowered its price target from $130 to $120. Both analysts highlighted Shopify's strong GMV growth and its potential for continued market share gains, particularly in the international market.

Shopify's management noted that only 1% of its GMV is related to imports from China, which are subject to the de minimis exemption. The company's second-quarter guidance includes mid-20s revenue growth and high-teens gross profit growth, which analysts view as a positive sign despite potential margin pressures from the PayPal partnership and other factors.