Shopify is Brushing Off Tariffs - 3 Minute Stock Analysis - May 2025

Published first at https://www.3minutebreakdowns.com Shopify stock analysis. Ticker symbol: $SHOP Shopify just reported earnings and the stock fell 5%. However, shares recovered and were nearly flat by the end of the day. At the latest price, Shopify now has a market value of 118.6 billion US dollars. The company has 5.5 billion of cash and investments on its balance sheet and minimal debt so the enterprise value is 113 billion. Meanwhile Shopify has generated 9.4 billion of revenue over the past 12 months, 1.6 billion of net income and 1.7 billion of free cash flow. So the company is currently valued at 12 times sales, 74 times earnings and 67 times free cash flow. So let’s take a look at whether Shopify is worth buying and if you like this video make sure to click the link in the description. Going into today’s earnings, there was concern that Shopify might be negatively affected by President Trump’s tariffs and the ending of the de minimis import rule. However, Shopify management reported strong results for the quarter and said that they are seeing no material impact so far. Management said that April and May numbers are still looking strong, and they guided for mid-twenties percent revenue growth for the second quarter. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support.