Shopify stock slips on light guidance, company notes tariff ‘uncertainty’
The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018.
Chris Wattie | Reuters
Shares of Shopify dipped more than 5% in early trading on Thursday after the company posted mixed first-quarter results and issued soft guidance for the current period.
Here’s how the company did:
- Revenue: $2.36 billion vs. $2.33 billion expected by LSEG
- Earnings per share: 39 cents adjusted vs. 26 cents expected by LSEG
For the second quarter, Shopify said it expects gross profit to grow at a high-teens percentage rate, while analysts had forecast a rate of 20.1%, according to StreetAccount. The company forecast revenue to expand at a mid-twenties percentage rate compared with a year earlier. Wall Street had forecast roughly 22% growth.
Shopify sells software for merchants who run online businesses as well as services such as advertising and payment processing tools. Many of Shopify’s merchants are small- to medium-sized businesses, giving it some exposure to President Donald Trump’s sweeping tariffs on Chinese imports, which total 145%. As part of Trump’s tariffs, the president last week closed a trade loophole favorable to many online businesses that allowed shipments from China under $800 to enter the U.S. duty-free.
On a call with investors, Shopify President Harley Finkelstein said the expiration of de minimis isn’t expected to have a “meaningful impact” on Shopify in the near term. Roughly 1% of its gross merchandise volume is related to imports from China that were subject to the exemption, he said.
The company hasn’t seen “broad based price increases” among sellers yet, Finkelstein said. He added that consumers who purchase from Shopify businesses skew higher income, with more than half of buyers in the U.S. having incomes above $100,000.
“We believe this helps insulate our merchants from some of the potential swings in pricing or other market factors, as higher income consumers tend to be less price sensitive,” Finkelstein said. “We acknowledge the uncertainty ahead and are actively monitoring our data to help us support our merchants and adapt to whatever changes may arise.”
Earlier this year, Shopify also added a “buy local” tool to its site, allowing shoppers to filter products to items sold by merchants in their country.
E-commerce companies are bracing for the impact of Trump’s tariffs. Amazon earlier this month issued light operating income guidance for the second quarter, highlighting “tariff and trade policies” as a factor weighing on its outlook. Etsy, meanwhile, said last week it’s staying “nimble” to the tariff uncertainty, while the company’s finance chief Lanny Baker noted that the company’s “direct tariff exposure appears to be relatively low.”
GMV, a key metric that measures the total volume of goods sold on the platform, was $74.75 billion during the first quarter. That fell just short of consensus estimates for $74.8 billion, according to StreetAccount.
Revenue for the quarter was up about 27% to $2.36 billion, beating analysts’ projected $2.33 billion. Subscription solutions revenue came in at $620 million during the quarter, which was lighter than the $621.5 million forecast by Wall Street.
Shopify stock chart
Technology
AppLovin stock tanks on report SEC is investigating company over data-collection practices
The AppLovin logo arranged on a smartphone in New York, US, on Wednesday, Feb. 26, 2025.
Gabby Jones | Bloomberg | Getty Images
AppLovin shares plummeted on Monday after Bloomberg reported that the SEC has been probing the mobile advertising company over its data-collection practices.
The agency has been looking into whether the company violated agreements on pushing targeted ads to consumers, Bloomberg reported, citing people familiar with the matter. The report said that the SEC is responding to a whistleblower complained filed this year along with multiple short-seller reports, and added that neither the company nor its officials have been accused of wrongdoing.
An AppLovin spokesperson said the company doesn’t typically comment on the “existence or non-existence” of regulatory matters.
“That said, as a global public company, we regularly engage with regulators and if we get inquiries we address them in the ordinary course,” the spokesperson said in a statement. “Material developments, if any, would be disclosed through the appropriate public channels.”
The stock dropped 14% in regular trading after the report, which landed shortly before market close. It fell another 5% in extended trading.
AppLovin’s stock has been on a tear, jumping about 80% this year after soaring more than 700% in 2024. The surge has been driven by the company’s artificial intelligence technology that’s allowed it to provide better ad targeting capabilities to brands.
Last month, AppLovin was added to the S&P 500, replacing MarketAxess Holdings, at the same time that Robinhood joined the index in place of Caesars Entertainment.
AppLovin made the move into the benchmark despite a short-seller’s effort to keep it out.
In March, Fuzzy Panda Research advised the committee for the large-cap U.S. index to keep AppLovin from becoming a constituent. AppLovin shares dropped 15% in December, when the committee picked Workday to join the S&P 500.
Three notable short-seller firms, including Fuzzy Panda, have slammed AppLovin of late. The latest was Muddy Waters Research, which in March said the company’s ad tactics “systematically” violate app stores’ terms of service by “impermissibly extracting proprietary IDs from Meta, Snap, TikTok, Reddit, Google, and others.” In so doing, AppLovin is funneling targeted ads to users without their consent, Muddy Waters said.
Fuzzy Panda and Culper Research put out reports the prior month, taking aim at AppLovin’s AXON software, which drove its earnings growth and stock surge. The shares dropped 12% on Feb. 26, the day of the short reports.
After those reports were published, AppLovin CEO Adam Foroughi wrote a blog post, defending his company’s technology and practices, and taking aim at the short sellers trying to profit from AppLovin’s decline.
Figma signage appears at the New York Stock Exchange in New York as the company prepares for its shares to begin trading on July 31, 2025.
Michael Nagle | Bloomberg | Getty Images
Figma shares jumped 7% on Monday after the design software vendor’s technology was promoted by OpenAI CEO Sam Altman in an onstage demo at his company’s annual DevDay conference in San Francisco.
Altman discussed Figma’s integration into ChatGPT, which has more than 800 million monthly users. He showed how third-party applications could plug in with OpenAI’s Apps SDK, or software development framework.
“When someone’s using ChatGPT, you’ll be able to find an app by asking for it by name,” Altman said. “For example, you could sketch out a product flow for ChatGPT and then say, Figma, turn this sketch into a workable diagram. The Figma app will take over respond and complete the action.”
In addition to asking for Figma’s help by name in ChatGPT, the assistant can also suggest Figma when it’s relevant, Figma product manager Luke Zhang said in a blog post.
The rally for Figma, at its high point, was the steepest since the day of the company’s public market debut on the New York Stock Exchange in July.
Figma has been ramping up its own tools for working on app and website designs using generative AI models from OpenAI and other providers.
Subscribers to products that connect to the Apps SDK will be able to log in without leaving their ChatGPT conversations, Altman said. He said people working on products in Figma can also launch the FigJam tool to keep working on development ideas. Apps SDK is based on the Model Context Protocol, an open standard that OpenAI rival Anthropic introduced last year.
Software developers will be able to submit apps for review later in 2025, Altman said.
Over time, OpenAI will offer many ways to generate revenue through third-party integrations, Altman said. Last week, OpenAI announced a feature allowing people to buy products listed on Etsy through ChatGPT.
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