Latest news with #HarleyFinkelstein
Yahoo
6 days ago
- Business
- Yahoo
5 Insightful Analyst Questions From Shopify's Q2 Earnings Call
Shopify's second quarter saw a strong positive market reaction, with management attributing results to surging global adoption and recent investments in platform capabilities. President Harley Finkelstein highlighted that offline gross merchandise value (GMV) rose 29% and business-to-business GMV grew 101%, while international GMV, led by Europe, accelerated 42%. Management credited the broadened appeal to major global brands and seamless integration across physical and digital channels. Finkelstein remarked, 'The strong results you see today come from seeds we planted years ago.' Is now the time to buy SHOP? Find out in our full research report (it's free). Shopify (SHOP) Q2 CY2025 Highlights: Revenue: $2.68 billion vs analyst estimates of $2.55 billion (31.1% year-on-year growth, 5.2% beat) EPS (GAAP): $0.69 vs analyst estimates of $0.20 (significant beat) Adjusted Operating Income: $424 million vs analyst estimates of $365.3 million (15.8% margin, 16.1% beat) Revenue Guidance for Q3 CY2025 is $2.76 billion at the midpoint, above analyst estimates of $2.63 billion Operating Margin: 10.9%, in line with the same quarter last year Billings: $2.67 billion at quarter end, up 31.3% year on year Market Capitalization: $194 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions From Shopify's Q2 Earnings Call Brian Peterson (Raymond James) asked about demand patterns and the potential for pull-forward ahead of tariffs. CFO Jeff Hoffmeister replied there was no evidence of demand being pulled forward and emphasized business consistency. Arjun Bhatia (William Blair) inquired about the localization of international products. President Harley Finkelstein detailed ongoing product rollouts and highlighted still-untapped international opportunities, particularly in Europe and Asia Pacific. Gabriela Borges (Goldman Sachs) challenged management on the sustainability of high growth rates. Finkelstein credited durable growth to past investments and ongoing expansion into new verticals, while Hoffmeister cited broad-based product and market tailwinds. Terry Tillman (Truist Securities) asked about timing and adoption of Universal Cart and Checkout Kit. Finkelstein confirmed these AI-driven products are already available, with partners like Microsoft Copilot using Checkout Kit and more launches expected ahead of the holiday season. Tyler Radke (Citi Investment) probed deeper into performance marketing spend and expected returns. Hoffmeister explained that improved internal models have driven marketing efficiency, with broad-based support for both geographic expansion and product launches. Catalysts in Upcoming Quarters In the coming quarters, our team will watch (1) the adoption and monetization of new AI-driven commerce tools such as Universal Cart and Sidekick, (2) the continued pace of international expansion and localized product rollouts, particularly in Europe and Asia-Pacific, and (3) the impact of increased performance marketing on new merchant acquisition and engagement. Progress in integrating large enterprise clients will also be a critical marker of Shopify's strategic execution. Shopify currently trades at $150.00, up from $127.11 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Our Favorite Stocks Right Now When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
07-08-2025
- Business
- Miami Herald
Forget Amazon, this online retailer is growing even faster
Shopify has carved out a big niche in e-commerce by providing the platform necessary for retailers to bring their businesses online. The company's roots stretch back to founder Tobias Lutke's frustration when he attempted to sell skateboards online. He felt there had to be a better way to build a retail business, so he went out and created it. Don't miss the move: Subscribe to TheStreet's free daily newsletter Unlike Amazon, which sells everything from A to Z both directly and via third-party sellers on its marketplace, Shopify offers retailers a decentralized platform to build their businesses. It includes tools for websites, accounting, and inventory management, plus the ability to sell on multiple channels, including Amazon, eBay, and social media. Its agnostic approach to e-commerce has translated into rapid growth this year, despite ongoing consumer belt-tightening due to inflation and a wobbly jobs market. Bloomberg/Getty Images Shopify's edge is that it offers retailers a relatively easy way to get up and running quickly across multiple online retailers, including eBay and Amazon, without getting bogged down in administrative tasks. Merchants can leverage Shopify (SHOP) to manage inventory across e-commerce and brick-and-mortar stores via plug-ins, reducing headaches. Related: JPMorgan drops 3-word verdict on Amazon stock post-earnings Shopify's payment processing services, shipping integration, and cash advances simplify sales and improve merchant cash flow while content tools and analytics help retailers better serve customers. In return, Shopify pockets fees, including monthly subscriptions that range from $29 for basic services to up to $2,300 for big enterprises that require heavy lifting. It also makes a percentage of any credit card sales when merchants use Shopify Payments. Altogether, those fees really add up. Shopify's second-quarter earnings revealed revenue grew 31% to $2.68 billion, about $130 million more than expected. That translated into net income of $338 million, excluding tailwinds from investments. Including those investments, net income was $906 million. Earnings per share, or EPS, grew 35% to $0.35. Shopify's merchants are winning with consumers. Last quarter, Shopify's gross merchandise value was $87.8 billion, up 31%, while Amazon's North American retail sales rose 11% to $100 billion. Related: Amazon makes surprising decision to cut losses on recent deal Management believes investments in AI will help that strength continue. Shopify is targeting third-quarter revenue growth at a mid-to-high twenties percentage rate compared to one year ago. A lot of its growth stems from efforts to push more deeply into offline and business-to-business sales - something Shopify President Harley Finkelstein referred to on Shopify's earnings conference call would create "a truly unified commerce offering." It's also because Shopify has a knack for capitalizing on consumer trends, the latest of which is artificial intelligence. "We've consistently proven to be experts in anticipating where consumers will be showing up next and building accordingly," said Finkelstein. "We've built a suite of products that make it easy for AI platforms to bring shopping to their agents from discovery to checkout." More Retail Stocks: Troubled retailer files Chapter 11 bankruptcy, liquidates storesWayfair struggles to reverse concerning customer behaviorWalmart introduces mobile new store format for younger customers Its AI agents can quickly search across its product catalog, and its newly launched Checkout Kit can be embedded directly within chats with AI agents, allowing shoppers to buy right from the chat. AI tools are also being rolled out to help merchants, including Sidekick, a data-crunching AI tool that can draw insights from merchant data in seconds that could otherwise take hours. Its AI store builder can create a custom online store in seconds too, from a single phrase. "Now all you need is an idea and a description of the product you want to sell like stylish athleisure apparel for women, and Shopify will do the rest," said Finkelstein. The new AI agents could give it yet another leg up, helping it drive even greater sales and profit growth in the future. Investors seem to agree. Shopify's stock price surged after the earnings release, jumping 22% on August 6. Todd Campbell owns Shopify shares. Related: Apple makes $100 billion genius move to skirt huge problem The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
06-08-2025
- Business
- CNBC
Shopify president: So far, we're seeing no slowdown from the tariffs
Harley Finkelstein, Shopify president, joins CNBC's 'Squawk on the Street' to discuss the company's most recent earnings.
Yahoo
15-07-2025
- Business
- Yahoo
Up 80% in the Last Year, Is Shopify Stock Stalling Out or Getting Ready for Its Next Surge?
As artificial intelligence (AI) continues to shape the digital commerce landscape, Shopify (SHOP) is working to ensure it remains not only relevant, but essential. The company's first-quarter results were more than reassuring. Shopify President Harley Finkelstein indicated in the Q1 earnings call that Shopify's agility remains a powerful asset. Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Shopify stock has surged 9.8% year-to-date, compared to the broader market gain of 6.3%. Let's find out if Shopify can reignite sustained growth in the AI-powered era of e-commerce. Valued at $145 billion, Shopify is a commerce platform that helps individuals and businesses create and manage online stores. It offers tools for selling products online, in-person, and on social media, as well as managing payments, shipping, inventory, and marketing, all in one place. After years of rapid growth and pandemic-driven tailwinds, the Canadian company now faces a more uncertain macroeconomic environment. However, the company displayed resilience during a quarter marked by rising global trade tensions and shifting economic policy. Total revenue increased 27% year on year in Q1, marking the eighth consecutive quarter of revenue growth above 25%. Gross merchandise volume (GMV), or the total value of merchandise sold on the platform, rose 23% to $74.8 billion. This was the seventh consecutive quarter of GMV growth above 20%. Offline GMV increased 23%, indicating Shopify's growing popularity among brick-and-mortar retailers and mid-market brands. Despite ongoing geopolitical uncertainty, cross-border trade remained stable, accounting for 15% of total GMV. Additionally, international GMV increased 31%, indicating that Shopify's global expansion strategy is yielding long-term revenue and transaction scale. Shopify's merchant cohort dynamics have been a strategic growth driver for the company. Its ability to consistently outperform the broader e-commerce market, with 38 of its last 39 merchant cohorts doing so since 2015. This demonstrates the strength of its platform, execution, and merchant-first approach. Shopify Payments also achieved 64% GMV penetration as a result of its expansion into 16 new countries. Shop Pay, Shopify's accelerated checkout solution, saw 57% annual GMV growth, processing more than $22 billion in Q1 alone. However, growth alone will not be sufficient. With AI transforming everything from logistics to customer service, the next phase of e-commerce will necessitate tools that are smarter, faster, and more localized. Shopify appears to understand this and is moving quickly to meet the demand. Perhaps the most exciting recent launch is an AI-powered tool that instantly identifies duty rates based on product description and country of origin, which can mean the difference between 0% and 15% import fees, resulting in a direct margin impact. The company is also incorporating AI into its daily workflows. The Shop app has been updated to allow buyers to filter products by country, promoting local businesses and improving discovery. The Sidekick AI assistant has been redesigned for improved logic processing, multilingual support, and scalability with larger merchant datasets. Monthly active users of Sidekick more than doubled in 2025 alone. Shopify's 'AI-first' mandate is now operational too. Shopify maintained a strong 15% free cash flow margin. As of the end of the quarter, the company had $5.5 billion in cash, equivalents, and marketable securities. Heading into the second quarter, Shopify expects mid-20% revenue growth, high-teens gross profit growth, and free cash flow margins that remain in the mid-teens. Management emphasized continued investments in AI, enterprise functionality, offline retail, and global expansion. This indicates that Shopify is not backing off in the face of macroeconomic uncertainty. Analysts predict that the company will report 10.6% earnings growth and a 22.6% revenue increase in 2025. Despite Shopify's strong performance, many investors are still unsure about its valuation. To justify its premium valuation of 80x forward earnings and 13x forward sales, Shopify must continue to deliver both top-line growth and expanding profitability. Overall, Wall Street rates SHOP stock a 'Moderate Buy.' Of the 44 analysts covering SHOP, 27 rate the stock a 'Strong Buy,' two have a 'Moderate Buy' recommendation, 14 suggest a "Hold,' and one rates it a 'Strong Sell.' The stock is trading close to its mean price target of $116.76. However, its high target price of $175 suggests the stock could go as high as 53.2% over the next 12 months. Shopify's long-term goal is to evolve from a commerce enabler into a fully integrated commerce ecosystem. That means managing the checkout experience, owning shipping and fulfillment tools, and incorporating AI-powered decision-making throughout the merchant journey. However, this journey will take time. Patient investors who believe in the rise of AI-driven commerce may find Shopify poised for a new era of growth. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Hamilton Spectator
24-06-2025
- Business
- Hamilton Spectator
Tech execs say building up tech ecosystem means resisting allure of U.S., acquisition
TORONTO - A trio of the biggest names in tech say they resisted the allure of the U.S. and businesses that saw them as a takeover target — and hope the next generation of Canadian entrepreneurs will do the same. Shopify Inc. president Harley Finkelstein, Cohere co-founder Aidan Gomez and Wealthsimple CEO Michael Katchen feel the future of the country's tech ecosystem is dependent on entrepreneurs building in Canada. In charting their rise, they faced plenty of temptation to flee the country or give in to businesses that wanted to buy their firms. Years ago, Gomez says Cohere was facing a nine-figure acquisition offer it ultimately turned down. He now feels any exit from the Canadian market would be a failure and coaches entrepreneurs who write to him not to incorporate in the U.S. Finkelstein says Shopify felt similar pressure, when it was raising a Series A and some investors made their funding conditional on a move south of the border. He says Shopify refused and eventually found an investor group that didn't care where the company was based. Their remarks came at the inaugural Toronto Tech Week, which will span more than 300 events uniting the country's entrepreneurs this week. This report by The Canadian Press was first published June 24, 2025. Companies in this story: (TSX:SHOP)
