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Shopify Rebounds Strongly, Defying Expectations After Pandemic Plunge
20 Aug
Summary
- Shopify stock price crashed from $170 to below $30 in less than 2 years
- But revenue growth is now accelerating, up 31% year-over-year last quarter
- Shopify expanding to new markets like Europe, gaining market share
In the last five years, investors in Shopify (NASDAQ: SHOP) have experienced a wild ride. The e-commerce software and payments platform saw surging growth and a meteoric rise in its stock price during the COVID-19 pandemic, only to come crashing down to earth in 2022. Shares went from close to $170 to below $30 in less than two years.
However, as of August 20th, 2025, the stock is rising again, hitting recent highs of over $150 after posting strong growth yet again in the second quarter of 2025. This turnaround is particularly impressive given that inflation has come down and consumer spending growth has slowed in the United States.
Shopify's revenue growth is now accelerating, up 31% year-over-year to $2.68 billion last quarter, compared to 21% growth in the year-ago period. The company is gaining market share of e-commerce and retail spending in the United States while also expanding to new markets such as Europe. Payment volume in Europe grew 42% and greatly outpaced overall sales.
Shopify's success is driven by the wide breadth of products it offers to help businesses grow, allowing them to outsource the important function of having their own online storefront to a trusted third party. This self-reinforcing cycle has helped Shopify's revenue grow from well under $1 billion to $10 billion in less than 10 years, making it one of the fastest-growing businesses in the world.
