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Shopify Shares Slide as Q2 Outlook Mutes a Strong Q1 Beat

A slower Q2 outlook with higher costs refocused investors on near-term profits.

Overview

  • Shopify, which reported quarterly results Tuesday, saw its stock fall in early trading after guidance pointed to slower growth and higher expenses.
  • First-quarter revenue rose 34% to $3.17 billion, topping forecasts, and gross merchandise volume—the value of goods sold on its platform—reached about $100.7 billion.
  • The company recorded a $581 million net loss after a $941 million marked‑to‑market hit on equity investments, even as adjusted EPS beat and adjusted net income of $360 million trailed some estimates.
  • For Q2, Shopify guided revenue growth in the high‑twenties and gross profit growth in the mid‑twenties, and said operating expenses will be 35%–36% of revenue, including about $145 million in stock‑based pay.
  • Executives pointed to AI tools like Sidekick and Shopify’s commerce data as long‑term strengths, while cautioning that rising AI infrastructure costs and newer region rollouts could pressure near‑term margins.