Shopify recently announced a key partnership with Affirm to expand globally, introducing Shop Pay Installments in Canada, with further plans for the U.K. and other regions. In the context of last month's market conditions, where significant volatility prevailed due to tariff-related developments, Shopify's stock price performance was relatively stable compared to the broader market decline of 12%. The company's collaborations with firms like Appriss Retail for fraud prevention and its inclusion in the Nasdaq Composite Index likely provided support, counterbalancing broader market pressures and maintaining investor confidence.

Be aware that Shopify is showing 3 risks in our investment analysis.

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The recent partnership between Shopify and Affirm, extending Shop Pay Installments to Canada and planning expansions into the U.K. and beyond, could significantly influence Shopify's anticipated international growth narrative. This collaboration is likely to bolster revenue by tapping into new markets. Moreover, improvements in merchant efficiency and productivity through AI advancements are poised to enhance earnings and operational margins at a time when analysts forecast revenue to grow by 21.9% annually over the next three years.

Over the past five years, Shopify's total return was 83.84%, underscoring its resilience and growth in the commerce technology sector. For context, during the last year, Shopify outperformed the US IT industry, which recorded a 5.8% decline. This performance reflects the company’s robust strategies in expanding global reach and securing key partnerships.

Shopify's collaboration with notable brands such as FC Barcelona and Reebok further supports its revenue growth narrative. As these partnerships mature, they could positively affect earnings forecasts, with some analysts predicting that earnings could reach US$2.7 billion by March 2028. The current share price of US$109.82 reflects a potential discount compared to the consensus analyst price target of US$134.54, indicating that there is room for upward movement should the company continue to execute its growth plans effectively.

Take a closer look at Shopify's potential here in our financial health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:SHOP.

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