Shopify IncSHOP
▼ NegativeCapitalrelevance
Missed EPS estimates and guided Q1 2026 free cash flow margins below prior year, disappointing investors.
Impact on stocks 1
Cloud & Digital Infrastructure
Shopify IncShopify was the second-largest detractor for the RiverPark Large Growth Fund in the first quarter of 2026, with its shares declining 26%. The stock faced pressure after its fourth-quarter 2025 earnings report on February 11, which investors viewed as mixed despite revenue of $3.67 billion growing 31% year-over-year and beating expectations. The company missed earnings per share estimates and guided first-quarter 2026 free cash flow margins slightly below the prior year, disappointing investors who had expected continued margin expansion. Broader risk-off selling tied to the Iran conflict and rising interest rate expectations further pressured the stock through the remainder of the quarter. RiverPark remains confident in Shopify's long-term prospects, citing its expanding ecosystem, international expansion, and improving profitability profile.
Shopify IncMissed EPS estimates and guided Q1 2026 free cash flow margins below prior year, disappointing investors.