Shopify stock soars 20% as Q2 revenue spikes over 30%

Shopify stock sails to three-year highs on impressive Q2.
Management forecasts high-20s percentage for Q3 revenue growth.
SHOP stock is 16% away from all-time highs.
NASDAQ and S&P 500 trace higher despite Trump's 25% added tariff to India.

Clay Webster FXStreet

Shopify (SHOP) is soaring on Wednesday after delivering stand-out second-quarter results. The Canadian ecommerce platform reported revenue surging 30.7% over a year earlier, and shares jumped 20% on the news to three-year highs.

SHOP stock is trading at $152.50 at the time of writing, while the S&P 500 and NASDAQ have risen 0.6% and 0.8%, respectively. The Trump administration slapped an additional 25% tariff on India in a bid to stop the country from importing and selling Russian Oil on world markets. This brings the full Indian tariff to 50%.

Shopify earnings news

Net income in the quarter ending in June, excluding the value of equity investments, was $906 million, up from $171 million a year earlier. Free cash flow margin remained at 16% but rose from $333 million one year ago to $422 million in Q2.

Revenue of $2.68 billion arrived $130 million above the average Wall Street forecast.

"Shopify delivered another outstanding quarter, with both GMV and revenue growth rates accelerating in North America, Europe, and Asia Pacific, quarter over quarter. Europe was a particular source of strength, where GMV grew 42% on a constant currency basis," said Jeff Hoffmeister, Chief Financial Officer of Shopify.

For the third quarter, management said that revenue would grow in the mid-to-high 20s on an annual percentage basis, as well as gross profit growing at a low-20s annual percentage rate.

Shopify stock forecast

Shopify stock is up 43% year-to-date and 180% over the past year, but it doesn't seem likely to stop now. The all-time high at $176.29 from November 2021 is just 16% higher, and bulls will yearn to take out that overhead target by the end of the year.

While there might need to be some consolidation over the next five months, the Relative Strength Index (RSI) at 68 shows that SHOP is not seriously overbought even now. Expect the prior support-turned-resistance region surrounding $128 to fortify the share price in the case of a pullback in the meantime.

SHOP weekly stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.