US Stock Market Move | Q2 revenue growth will slow down, Shopify (SHOP.US) fell more than 8%

On Tuesday, Shopify (SHOP.US) fell more than 8%, marking its largest drop since February, now trading at $117.62. On the news front, SHOP announced a 34% increase in first-quarter revenue, reaching $3.17 billion, surpassing the estimated 31% growth rate and exceeding the company's expected low 30% growth rate, mainly due to a 39% surge in merchant solutions revenue, reaching $2.42 billion. Gross merchandise volume (GMV) surpassed $100 billion for the first time, reaching $100.7 billion (a 35% increase year-over-year), marking an important milestone in the continuous improvement of platform adoption rate and merchant engagement. For the second quarter, SHOP expects revenue growth to slow to the high twenties percentage range, a decrease from the 34% growth rate in the first quarter but close to the market's general expectation of 27%. As the company continues to invest in platform features and AI infrastructure, it is expected that free cash flow profit margin will remain at a medium teens level. Shopify had $5.7 billion in cash at the end of the first quarter, with no debt, providing flexibility for growth plans. Analysts believe that the more challenging year-over-year comparison makes the slowdown in growth not surprising.