Core Viewpoint - Shopify's Q1 2025 sales reached $2.36 billion, exceeding analyst expectations of $2.34 billion, while the Gross Merchandise Volume (GMV) was $74.75 billion, slightly below the forecast of $74.8 billion [1] Group 1: Financial Performance - Shopify's Q1 2025 sales were $2.36 billion, surpassing analyst expectations [1] - The GMV for the quarter was $74.75 billion, which was marginally lower than the anticipated $74.8 billion [1] - The company expects Q2 revenue to grow approximately 24%-26% year-over-year, exceeding the previous analyst forecast of 23% [1] Group 2: Market and Trade Impact - Shopify's cross-border business accounted for 14% of GMV in Q4 2024, and recent changes in U.S. tariff policies may impact this segment [1] - The potential impact of trade tensions on small e-commerce sellers remains uncertain, which could affect their profitability and demand for Shopify's services [1] - The company is attempting to mitigate risks by expanding into European and Southeast Asian markets, although short-term trade policy fluctuations will likely influence stock price volatility [2] Group 3: Stock Performance - As of the latest update, Shopify's stock dropped over 7%, trading at $87.70 [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________ Form 10-Q ___________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ ___________________________ ___________________________ Shopify Inc. (Exact name of re ...

Merchant Success Drives Shopify's Excellent Q1 - Delivering Strong Revenue Growth AND Profitability Internet, Everywhere - May 8, 2025 - Shopify Inc. (NASDAQ, TSX: SHOP) announced today financial results for the quarter ended March 31, 2025. Shopify achieved 27% revenue growth and 15% free cash flow margin. Shopify has now delivered double-digit free cash flow margins for seven consecutive quarters. "Our Q1 results confirm two clear facts. First, we are delivering both growth and profitability at scale. Sec ...

Shopify Inc. SHOP will release earnings results for the first quarter, before the opening bell on Thursday, May 8. Analysts expect the Ottawa, Canada-based company to report quarterly earnings at 26 cents per share, up from 20 cents per share in the year-ago period. Shopify projects to report quarterly revenue at $2.33 billion, compared to $1.86 billion a year earlier, according to data from Benzinga Pro. Affirm Holdings, Inc. AFRM and Shopify announced on April 9 that they are accelerating their global exp ...

Core Viewpoint - Shopify is expected to report strong revenue and earnings growth in its first-quarter 2025 results, driven by an expanding merchant base and international growth. Group 1: Financial Expectations - Shopify anticipates revenue growth at a mid-twenties percentage rate year-over-year, with the Zacks Consensus Estimate for revenues at $2.33 billion, indicating a 25.24% increase from the previous year [1] - The consensus estimate for earnings is set at 26 cents per share, reflecting a 30% growth compared to the same quarter last year [2] - The Zacks Consensus Estimate for first-quarter GMV is pegged at $75 billion, suggesting a 23% year-over-year growth [4] Group 2: Growth Drivers - Shopify's growth is attributed to a strong increase in its merchant base, with a cumulative GMV of $1 trillion processed in Q4 2024, marking a 25.7% year-over-year increase [3] - The growing usage of Shop Pay and new product launches, such as Shopify Balance for Plus and next-day payouts, are expected to enhance cash flow management and merchant adoption [4] - Subscription solutions revenues are estimated at $621 million, indicating a 21.5% year-over-year growth, while Merchant Solutions revenues are expected to reach $1.71 billion, suggesting a 26.7% increase [5] Group 3: Market Position and Valuation - Shopify shares have declined 7.5% year-to-date, outperforming the Zacks Computer & Technology sector's decline of 7.6% and the Internet Services industry's drop of 11.3% [6] - Despite the decline, Shopify's stock is trading at a premium with a forward Price/Sales ratio of 11.1X, compared to the industry average of 4.88X [10] - Shopify commands 12% of the U.S. ecommerce market and is experiencing rapid growth in Europe and Japan, indicating a strong long-term outlook [13] Group 4: Strategic Partnerships - Shopify's partnerships with major companies like Amazon and Roblox are expected to enhance its merchant base and provide access to extensive fulfillment networks [15] - The expansion of Shopify Tax in the UK and EU, along with the introduction of Tap to Pay in multiple countries, is seen as a positive development for growth [14] - Collaborations with platforms such as TikTok, Snap, and YouTube are anticipated to further expand Shopify's reach and capabilities [14]

Core Viewpoint - The article discusses the accelerating trend of AI replacing human jobs, highlighting companies like Duolingo and Shopify adopting AI-first policies to enhance productivity and efficiency [1][2]. Duolingo - Duolingo is transitioning to an "AI-first" model, planning to phase out contract workers for tasks that can be handled by AI, such as recruitment and performance evaluation [2][12]. - The company reduced approximately 10% of its contract workforce by the end of 2023 due to the introduction of generative AI models like GPT-4, which streamlined content creation and translation processes [1][2]. - Duolingo launched 148 new language courses created by AI, marking the largest content expansion in its history, completing in less than a year what previously took 12 years for the first 100 courses [1][2]. Shopify - Shopify's CEO emphasizes that using AI reflexively is now a basic requirement for all employees, with a focus on integrating AI into workflows and decision-making processes [9][10]. - The company aims to lower the complexity curve for entrepreneurs, allowing AI to assist in decision-making and task completion, which could revolutionize the entrepreneurial landscape [9][10]. - Teams must justify the need for additional personnel by demonstrating how AI can achieve their goals, fostering a culture of innovation and efficiency [12][20]. Genspark - Genspark reported an annual recurring revenue (ARR) of $22 million within a month of launching its Super Agent, indicating rapid growth and the potential for becoming one of the fastest-growing startups [2][3]. - The ARR of $22 million translates to a monthly revenue of approximately $1.83 million, showcasing significant growth [3]. Industry Trends - The article suggests that the development of AI agents will continue to accelerate as more companies adopt AI technologies, with a shift towards "small teams + AI" becoming the norm [4]. - The necessity for companies to adapt to AI is framed as a critical factor for success, with the potential for AI to enhance productivity and create new opportunities [5][6].

Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. He graduated from the London School of Economics and is interested in finding reasonably priced businesses with sustainable long-term competitive advantages.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of ...

Core Viewpoint - Shopify Inc. (NASDAQ: SHOP) stock is being downgraded to a Sell ahead of Q1 2025 earnings on May 8th, indicating a negative outlook for the company's performance in the near term [1]. Group 1: Analyst Background - The analyst has over two decades of experience in the market, particularly in the technology sector, and has navigated various market challenges including the dot com bubble and the credit default crisis of 2008 [1]. - The focus of the analyst's service is on momentum, suggesting a strategy that emphasizes market trends and shifts [1].

Core Insights - Shopify (SHOP) is expected to report quarterly earnings of $0.26 per share, reflecting a 30% increase year-over-year, with revenues projected at $2.33 billion, a 25.2% increase compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 2% in the last 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts forecast 'Revenues- Merchant solutions' to reach $1.71 billion, a year-over-year increase of 26.7% [5] - 'Revenues- Subscription solutions' are projected to be $621.37 million, reflecting a 21.6% increase from the prior-year quarter [5] Gross Merchandise Volume (GMV) and Gross Payments Volume (GPV) - The estimated 'Gross Merchandise Volume (GMV)' is $74.66 billion, up from $60.86 billion in the same quarter last year [6] - 'Gross Payments Volume (GPV)' is expected to be $46.44 billion, compared to $36.24 billion a year ago [6] Monthly Recurring Revenue (MRR) and Shopify Plus Contribution - The consensus estimate for 'Monthly Recurring Revenue (MRR)' is $179.99 million, up from $151 million year-over-year [7] - 'Shopify Plus contributed' is expected to be $59.04 million, compared to $48 million in the same quarter last year [7] Gross Profit Estimates - Analysts expect 'Gross Profit- Merchant solutions' to be $661.73 million, up from $541 million year-over-year [8] - The consensus for 'Gross Profit- Subscription solutions' is $542.99 million, compared to $416 million in the previous year [8] Stock Performance - Shopify shares have increased by 29.1% in the past month, significantly outperforming the Zacks S&P 500 composite, which saw a 0.4% increase [8]

Core Viewpoint - The current market volatility presents attractive entry opportunities for retail investors in fundamentally strong companies despite concerns over U.S.-China trade relations and economic uncertainties [1][2]. Group 1: Broadcom - Broadcom's stock has declined nearly 22% from its December 2024 high, primarily due to trade war fears, yet it remains a strong buy due to its robust AI strategy and financial health [3][7]. - The company focuses on custom XPUs for hyperscaler clients, which enhances performance and energy efficiency, with an estimated addressable market of $60 billion to $90 billion by 2027 [4][5]. - Broadcom reported a 25% year-over-year revenue increase and a 44% surge in operating income in the recent quarter, trading at a forward P/E of 29.4, significantly lower than its five-year average of 70.5 [7]. Group 2: Shopify - Shopify's stock is down nearly 25% from its February 2025 high, but it has achieved a 31% year-over-year revenue growth and a 17% operating margin, with an annual gross merchandise value of $300 billion [8][11]. - The company provides a comprehensive tech-powered omnichannel setup for merchants and is expanding its reach to larger global brands, with significant growth potential in international markets [9][10]. - Despite a forward P/E ratio of 66.2, above its five-year average of 39, the valuation is justified by its diversified business model and expected revenue growth of 25.3% year-over-year to $2.33 billion [11]. Group 3: Vertex Pharmaceuticals - Vertex Pharmaceuticals' shares have increased by nearly 23.9% in 2025, with strong growth potential driven by its dominance in the cystic fibrosis market and robust revenue visibility from its key drug, Trikafta/Kaftrio [12][13]. - The company is also expanding into blood disorders and pain management, with new treatments like Journavx and Casgevy showing promise in large patient markets [14]. - Vertex has solid financials, with $11.2 billion in cash and minimal debt, and a forward P/E of 24.2, indicating it is a worthwhile investment [15]. Group 4: Intuitive Surgical - Intuitive Surgical's shares have remained flat in 2025, but the company has a strong global presence with over 10,000 da Vinci systems installed, positioning it for future growth despite trade war challenges [16]. - The company reported an 18.5% year-over-year procedure growth and a 19% revenue increase in the first quarter of 2025, with its latest da Vinci 5 system gaining traction [17]. - Intuitive Surgical is developing advanced features for its systems and computational technologies that provide valuable insights for surgeons, which are expected to differentiate the company in the long run [18][19]. - Although the forward P/E of 56.6 may seem high, it reflects the company's market dominance and growth prospects, making it a smart investment choice [20].