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Shopify SHOP shares have risen 33.6% over the past month compared with the broader Zacks Computer & Technology sector’s growth of 22.6%. The Zacks Internet - Services industry has appreciated 13.6% in the same time frame.
The outperformance can be attributed to robust growth in its merchant base, driven by its merchant-friendly tools, including Shopify Payments, Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. These offerings are enabling Shopify to attract merchants, even amid challenging economic conditions.
In the first quarter of 2025, Merchant Solutions’ revenues were $1.74 billion and accounted for 73.7% of Shopify’s total revenues. On a year-over-year basis, merchant revenues increased 29%, driven by strong Gross Merchandise Volume (GMV) and increased penetration of Shopify payments.
GMV in the first quarter of 2025 was $74.75 billion, which increased 22.8% year over year. Same-store sales growth from existing merchants, a higher number of merchants on SHOP’s platform and strong international growth drove GMV in the reported quarter.
One Month Performance
Image Source: Zacks Investment Research
SHOP Benefits From an Expanding Portfolio
SHOP’s expanding portfolio has been a major growth driver for its success. Its merchant-friendly tool Shop Pay stands out as a key driver. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny Was adopted Shop Pay, enhancing Shopify’s portfolio.
Shopify’s expanding footprint in the B2B space has also been noteworthy. In the first quarter of 2025, it saw 109% growth in B2B Gross Merchandise Value, marking an impressive performance in a growing market for the platform.
Building on this momentum in April 2025, Shopify announced a suite of new partner solutions tailored for B2B businesses. These solutions offer advanced storefront solutions, seamless back-office integrations, and native apps designed to speed up digital commerce for manufacturers and distributors. These solutions aim to streamline operations and enhance the B2B buying experience with faster time-to-market and lower costs.
Shopify’s investment in AI-driven tools, such as Shopify Sidekick, tariffguide.ai and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By using AI, Shopify enhances its platform’s power and user-friendliness.
A Rich Partner Base Aids SHOP’s Prospects
Shopify’s rich partner ecosystem has been a major growth driver. An expanding partner base, which includes TikTok, Roblox RBLX, PayPal, Snap, Pinterest, Criteo, IBM, Cognizant CTSH, Alphabet’s GOOGL cloud computing platform Google Cloud and Adayen, has further expanded its merchant base.
SHOP’s partnership with Cognizant and Alphabet’s Google Cloud aims to help retailers modernize their commerce platforms and deliver personalized, real-time shopping experiences. Combining Shopify’s platform, Alphabet’s cloud computing platform, Google’s cloud technology, and Cognizant’s expertise, this partnership supports retailers in scaling globally and unlocking new business value through advanced technologies like generative AI.
In its commerce integration partnership with Roblox, Shopify has opened new avenues for merchants to reach a younger and more engaged audience. This collaboration with Roblox allows Shopify to strengthen its position in the digital commerce space.