Shopify Inc. (SHOP) reported a significant first-quarter revenue growth of 34% year over year, reaching $3.17 billion, while its gross merchandise volume (GMV) exceeded $101 billion for the second consecutive quarter. The weekly active shops using its AI-powered commerce assistant, Sidekick, quadrupled compared to the previous year, with more than 12,000 custom apps created during the quarter.
Shopify’s AI strategy is demonstrating effectiveness, as AI-driven traffic to its stores increased eightfold year over year, with orders from AI-powered searches rising nearly 13 times. The company also generated $476 million in free cash flow, maintaining a free cash flow margin of 15%. Looking ahead, Shopify anticipates revenue growth in the high-20% range for the next quarter.
Despite these positive results, Shopify’s stock has seen a decline of 30.1% year to date, and it currently trades at a forward P/E ratio of 57.16. Earnings per share estimates for 2026 have increased to $1.80, indicating a projected growth of 53.9% from the previous year.
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