Shopify Shares Jump 20% on Strong Revenue Forecast and Steady Consumer Demand
- tech360.tv
- Aug 7, 2025
- 1 min read
Shopify Inc. shares surged 20% after the Canadian e-commerce company issued an upbeat revenue forecast, citing resilient consumer demand and strong performance from merchants on its platform.
The company said on Wednesday it expects third-quarter revenue to grow at a mid- to high-twenties percentage rate, outpacing analysts’ estimate of a 21.54% increase, according to LSEG data.
Shopify reported a 31% rise in second-quarter revenue, driven by steady growth in its merchant base during the April to June period. The momentum continued into early August, despite ongoing tariff pressures.
Chief Financial Officer Jeff Hoffmeister said on a post-earnings call that Shopify had not seen any decline in U.S. demand, noting growth across all merchant segments. He highlighted particularly strong performance from sellers with more than USD 50 million in annual gross merchandise volume, as well as those below USD 2 million.
Many merchants have also raised prices, though Shopify did not disclose specific figures.
The company’s results helped ease investor concerns over the impact of shifting U.S. trade policies under President Donald Trump, which have created uncertainty for retailers around demand, sourcing, and operational costs.
Charlie Miner, an analyst at Third Bridge, said the tariff situation remains fluid but noted that Shopify appears less affected by potential disruptions.
Shopify is also seeing benefits from its investments in artificial intelligence tools that assist retailers with building websites, generating images, and analysing sales data.
Shopify forecasts Q3 revenue growth in mid- to high-twenties %
Shares rose 20% following the announcement
Second-quarter revenue increased 31%
Source: REUTERS
