Shopify remains integrated in the global e-commerce infrastructure, supporting millions of active merchants across over 175 countries. In the latest Shopify updates, the company introduced an AI tool that builds full online stores from keyword prompts.
Beyond the AI rollout, the following sections will cover recent financial results, 2025 revenue expectations, its shift from NYSE to Nasdaq, and a class action lawsuit related to data privacy.
Latest Shopify Updates: Launch of the “AI Store Builder”
On May 21, 2025, Shopify introduced the “AI Store Builder,” which lets merchants create online stores by entering short descriptive keywords.
This AI-powered tool automatically produces three store layout options. Each one includes suggested images, product page designs, and placeholder copy, all based on user input.
Moreover, this helps store owners skip manual setup steps by creating a working storefront faster.
According to Shopify’s VP of Product, Vanessa Lee, the idea was to replace rigid setup processes with open-ended prompts.
While Shopify previously offered AI features through Shopify Magic and supported integrations, this is the first native feature that builds an entire storefront from scratch.
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Shopify Q1 2025 Revenue and Q2 2025 Forecast
On May 7, Shopify reported $1.9 billion in revenue for Q1 2025, marking a 27% increase from the same period last year.
The company also posted a 15% free cash flow margin, continuing a streak of seven consecutive quarters with double-digit margins.
President Harley Finkelstein framed the quarter as proof of consistent growth and operational efficiency.
He emphasized that Shopify’s infrastructure helps merchants stay focused on sales while the platform handles complexity behind the scenes.
CFO Jeff Hoffmeister added that the company has now delivered eight straight quarters of revenue growth above 25% and seven quarters of GMV growth above 20%, all while improving cash flow.
Moving forward, Shopify expects second-quarter revenue to rise in the mid-twenties percentage range compared to last year.
Gross profit is projected to grow in the high-teens range.
In addition, the company forecasts operating expenses at 39% to 40% of revenue and plans for stock-based compensation of $120 million. Free cash flow margin is also expected to remain consistent with Q1.
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Shopify Transfers Stock Listing to Nasdaq
On March 18, Shopify announced plans to shift its U.S. stock listing from the New York Stock Exchange to the Nasdaq Global Select Market.
The transition took effect after markets closed on March 28. Trading on Nasdaq began the following Monday, March 31.
This change does not affect Shopify’s listing on the Toronto Stock Exchange. The company continues to trade under the ticker “SHOP” on both exchanges.
Meanwhile, on May 19, Shopify replaced MongoDB in both the Nasdaq-100 Index and the Nasdaq-100 Equal Weighted Index.
SHOPIFY $SHOP to join the NASDAQ-100 INDEX starting May 19, replacing MongoDB $MDB, which will be removed from multiple Nasdaq indices, including tech and ESG benchmarks.
— Wall St Engine (@wallstengine) May 12, 2025
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Shopify Faces Data Privacy Lawsuit Over Tracking Practices
On April 21, a U.S. federal appeals court reinstated a proposed class action lawsuit against Shopify concerning its data tracking practices.
The 9th Circuit Court of Appeals ruled that Shopify can face legal action in California for collecting user data from online purchases made through third-party retailers based in the state.
The lawsuit stems from a complaint by Brandon Briskin, a California resident, who claimed that Shopify placed tracking cookies on his iPhone without permission when he purchased from a fitness apparel store.
He alleged that Shopify used this data to build a customer profile and shared it with other businesses.
Shopify argued it should not be held liable in California since it serves a broad market and did not target its activity specifically at that state.
Lower courts initially agreed. However, the full appeals court disagreed and found Shopify’s tracking behavior intentionally directed toward California users.
In its response, Shopify called the ruling a threat to how internet services function, warning that it could expose online sellers to lawsuits in any state. The company has not yet disclosed its next legal move.
Furthermore, a coalition of 30 states and Washington, D.C. supported the plaintiff, citing the need to enforce consumer protection laws online.
On the other hand, the U.S. Chamber of Commerce backed Shopify, warning that broad jurisdiction claims could hurt other software providers.
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Shopify Updates: Final Takeaways
Shopify’s recent activity points to a platform focused on scaling automation, tightening performance benchmarks, and preparing for stricter legal scrutiny.
These developments signal that the company is entering a phase where operational speed, regulatory compliance, and feature rollouts will directly influence merchant adoption and investor sentiment.
To stay informed on Shopify updates and other e-commerce platforms, subscribe to Financial Daily Update today.
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