In This Article:
Shopify (NASDAQ:SHOP) is gearing up to join the Nasdaq-100 on May 19, replacing MongoDB a move that could open the floodgates for institutional investment. The news propelled Shopify's stock up nearly 15% at 2.44pm in a single trading day, driven by a 27% revenue surge in its latest earnings report, despite ongoing trade friction between Canada and the US. Shopify President Harley Finkelstein told investors that, as of April, the company is seeing minimal impact from tariff pressures.
But the financial chart tells a more nuanced story. While revenue continues to trend upward, net income has been a rollercoaster, fluctuating between profitability and losses. EBITDA, meanwhile, remains relatively stable, suggesting Shopify is managing operational costs effectively despite market volatility. The overall trend points to expanding revenue streams, supported by Shopify's ongoing push into AI a strategy that could bolster its top line in the coming quarters.
With Shopify's Nasdaq-100 inclusion just days away, investors might want to keep an eye on ETF inflows and institutional buying. The stock's momentum could intensify, but the real test will be whether Shopify can convert increased exposure into sustained profitability. Stay locked in for more insights and updates on this evolving story.
This article first appeared on GuruFocus.