Shopify’s stock is down 12.6% after the company released its first-quarter results and second-quarter guidance on May 5, 2026. Despite reporting a revenue of $3.17 billion for Q1, a substantial increase from last year, the company posted a significant net loss attributed to equity investments.
Shopify’s first-quarter revenue represents a 34% increase from $2.36 billion in the same quarter last year. However, the company also reported a net loss of $581 million, which is an improvement from the $682 million loss in Q1 of the previous year.
The company projected second-quarter revenue growth between 25% to 29%, signaling a slowdown compared to prior forecasts. This disappointing guidance has raised concerns among investors, contributing to the stock’s sharp decline.
Additionally, Shopify’s gross merchandise volume (GMV) surpassed $100 billion for the second consecutive quarter. This milestone highlights the ongoing growth in e-commerce, even as the company faces financial challenges.
As of midday Tuesday, Shopify’s market cap stands at over $200 billion CAD, making it Canada’s most valuable tech company. Harley Finkelstein, Shopify’s president, emphasized that AI integration is crucial for future growth: “AI is now Shopify’s native language. We bet early on AI and forced its adoption.”
Despite the downturn, some experts suggest that today’s weakness could represent a long-term buying opportunity for investors looking to capitalize on Shopify’s potential recovery.