Shopify Jumps 11.5% On ‘High-Twenties’ Revenue Growth Hopes For Q2

Shopify (SHOP) climbed by 11.54 percent on Monday to end at $126.88 apiece, as investors began positioning portfolios ahead of the results of its earnings performance in the second quarter of the year.

According to the company, it is scheduled to announce its financial and operating highlights before market open on August 5. It will host a conference call to elaborate on the results.

High-20s Revenue Growth

For the period, Shopify Inc. is expected to grow its revenues by “high-twenties,” encouraged by the strong 34 percent revenue growth in the first quarter of the year.

Gross profit is also expected to increase by the mid-twenties, having grown by 32 percent quarter-on-quarter.

Analyst Ratings Mixed

Last week, Shopify Inc. received pessimistic coverage from investment firm Rothschild & Co., with the latter downgrading the stock to neutral from buy, alongside its price target by 18.75 percent to $130 from $160.

“With a heavy heart, we downgrade Shopify to Neutral. It has been one of our highest conviction internet names. The downgrade is predominantly due to the Meta (META) threat,” the investment firm said.

According to Rothschild, the rapidly growing AI, as well as Meta Platforms, pose an “existential threat” to the company as it provides small businesses with AI tools needed to build storefronts, run ads, handle payments, and manage customer relationships, similar to what Shopify Inc. is offering at present.

Prior to Rothschild’s coverage, the e-commerce operator earned a buy recommendation and a $160 price target from Jefferies (JEF), as well as an upgrade to buy from hold from Stifel (SF).

Hedge Fund Participation Dwindles

Looking into the hedge fund sentiment, Shopify Inc. saw lower participation and conviction among institutional investors, signaling caution over its growth prospects.

Data from Insider Monkey showed that 88 hedge funds held positions in the company, a sharp drop from 101 in the fourth quarter of 2025.

Collectively, their combined holdings also fell by 36 percent to $4.38 billion from $6.9 billion quarter-on-quarter.

While we acknowledge the risk and potential of SHOP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.