Shares in Shopify jumped 18 percent on the Toronto Stock Exchange (TSX), and nearly 14 percent on Nasdaq, after the Canadian tech heavyweight said it would join the Nasdaq 100 Index on May 19. The e-commerce company replaces database provider MongoDB.
Shopify transferred its US stock listing from the New York Stock Exchange (NYSE) to Nasdaq in late March in a move it said was meant to align with other software firms. The company also recently listed its New York City office in a US Security and Exchange Commission (SEC) filing, hinting that it was preparing for a possible index position.
The listing potentially boosts institutional investors’ trading in Shopify stock.
The Nasdaq 100 Index follows the exchange’s biggest listed companies outside of the financial sphere. As some investment funds are based on indexes, the listing potentially boosts institutional investors’ trading in Shopify stock.
United States (US) President Trump’s tariffs spooked Shopify traders in early April over concerns they might limit consumer spending through the company’s platform. The removal of a de minimis exemption for China (which allowed zero-duty imports under $800 USD) also prompted hesitation. However, the stock price rebounded after the White House paused universal tariffs a week later.
Shopify’s finances didn’t face a significant hit, however. It reported solid first quarter 2025 earnings with a 27 percent year-over-year growth in revenue and a 22 percent climb in gross profit, albeit with a larger-than-predicted $682-million net loss. Company president Harley Finklestein acknowledged the tariffs’ effects on market stability at the time, but said there was “little evidence” the trade war had a significant short-term impact.
Shopify said in its guidance that its gross profit would likely dip slightly slower year-over-year, but that its outlook was otherwise consistent with Q1. CFO Jeff Hoffmeister attributed the more cautious forecast to increased infrastructure costs as Shopify expanded its European presence and entered Mexico.
The company is otherwise expanding rapidly, having acquired search startup Vantage Discovery in March. In April, it launched an ad campaign in an effort to poach customers from Canadian rival Lightspeed.
Disclosure: BetaKit majority owner Good Future is the family office of two former Shopify leaders, Arati Sharma and Satish Kanwar.
Feature image courtesy Open Grid Scheduler / Grid Engine on Flickr (CC0 1.0).