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Shopify Inc (NYSE: SHOP) president Harley Finkelstein says the e-commerce giant was built for challenging times and is, therefore, strongly positioned to weather tariff uncertainty in 2025.

Speaking recently with CNBC, Finkelstein argued that building a business on Shopify is a “huge advantage” for retailers as the platform equips them with the right set of tools to navigate a rough environment.

At the time of writing, Shopify stock is up some 40% versus its April low.

Shopify has equipped merchants with the tools they need to navigate tariffs

According to Harley Finkelstein, the NYSE-listed firm has built its business in a way that allows it to “adapt very quickly and pull the right levers” in response to macroeconomic changes.

Shopify has recently rolled out a duties calculator to streamline cross-border payments and a new location-based filter that enables buyers to shop from merchants within their own country to bypass tariffs.

Additionally, the Canadian multinational has launched a new tool that helps with duty collection as well.

All in all, Shopify Inc remains committed to “shouldering complexity so our merchants don’t have to” the company’s president said in his latest interview with CNBC, adding these tools will help retailers in navigating the tariff environment in 2025. 

SHOP merchants tend to outperform the broader e-commerce market

On “Squawk on the Street”, Finkelstein also confirmed that retailers that have built their businesses on Shopify have a history of outperforming the broader e-commerce market.

“I think especially in tough times, businesses are just better on Shopify,” he added.

Shopify is well positioned to weather the tariff uncertainty this year also because it has merchants of all sizes, in every geography, across all industries.

Investors should also note that Trump’s new trade policies have not triggered signs of a slowdown at SHOP, as per the company’s recent data. That’s part of the reason why it remains a “buy” rated stock in 2025.

Shopify’s financials remain strong amidst a challenging macro environment

Earlier in May, Shopify reported a 27% annualised growth in quarterly revenue with a healthy free cash flow margin of 15%, which confirms the company can “balance growth and profitability even in an unpredictable market.”

SHOP is gaining market share both in the US and Europe and has more recently started onboarding larger, world-renowned names like VF Corp, LVMH, Vuori, and Mattel, which further speaks to the strength and agility of the platform. 

Q1 marked Shopify’s seventh consecutive quarter of over 20% gross merchandise volume (GMV), which substantiates just how well our merchants are doing, Harley Finkelstein concluded.

Wall Street currently has an average price target of $113 on Shopify shares, which signals a potential upside of more than 10% from current levels. However, the e-commerce stock does not currently pay a dividend.

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