Shopify shares surged 11.54 percent on Monday to close at $126.88 as investors positioned ahead of its second-quarter earnings report. The company is scheduled to announce results before market open on August 5 and expects revenue growth in the high-twenties percent range, following a 34 percent revenue increase in the first quarter. Gross profit is also projected to rise by mid-twenties percent after a 32 percent quarter-on-quarter gain. The rally came despite mixed analyst ratings, with Rothschild & Co. downgrading the stock to neutral from buy and cutting its price target to $130 from $160, citing competitive threats from Meta Platforms and AI tools. Hedge fund participation also declined, with 88 funds holding positions compared to 101 in the fourth quarter of 2025, and combined holdings falling 36 percent to $4.38 billion from $6.9 billion.
Shopify IncShopify expects high-twenties revenue growth for Q2, following strong Q1 growth.
Meta Platforms Inc.Rothschild downgraded Shopify citing competitive threats from Meta Platforms and AI tools.