Shopify (SHOP) is resilient, showing no signs of slowing down despite broader economic challenges. The commerce platform provider continues to post strong growth numbers, and the near-term outlook suggests this positive trend is far from over.

Thanks to the ongoing strength in its business, SHOP stock has gained over 80% in one year. While concerns over tariffs and fears of a potential economic slowdown had temporarily weighed on the stock, Shopify has marked a comeback. Over the last month, SHOP stock has climbed more than 28%, including a 13.7% surge on May 12. This sharp uptick came after encouraging news from U.S.-China trade negotiations, where both countries agreed to pause most tariffs for 90 days. This truce eased concerns about a global recession, sparking a broad market rebound and lifting growth stocks like Shopify.

While SHOP stock is regaining momentum, the company’s recent first quarter (Q1) financials and Q2 outlook indicate that the stock has further upside potential. At least one analyst remains highly optimistic and expects SHOP stock to hit $135. Moreover, it reflects a potential upside of 30% from its closing price on May 12.

Shopify Is Firing on All Cylinders

Shopify’s financial performance continues to impress. The company’s latest financials reflect the solid momentum in its business, driven by its focus on expanding its merchant base, growing penetration of its payment solutions, and venturing into new markets.

Over the past two years, Shopify has consistently delivered impressive results. For eight straight quarters, revenue has grown by over 25%, while its gross merchandise volume (GMV) has seen more than 20% growth for seven consecutive quarters. On top of that, Shopify has maintained positive free cash flow for 10 straight quarters and delivered double-digit profit margins for seven quarters running.

In the most recent quarter, Shopify's GMV surged 23% year-over-year. This growth reflects existing merchants increasing their sales, particularly in Europe, where GMV jumped 36%. Moreover, new sellers joining the platform also supported the GMV growth.

Revenue rose 27% in the first quarter, with merchant solutions and subscription services contributing to the gains. Shopify’s payments ecosystem has been a key growth driver, accounting for 64% of total GMV. Increased merchant base and international expansion are driving the penetration of Shopify Payments.

Meanwhile, Shopify’s subscription revenue grew by 21%. This reflects a steady influx of new merchants and benefits from pricing adjustments and platform fees, especially on Shopify Plus, which targets larger businesses.

Offline commerce is another area in which Shopify is gaining traction. Revenue from the segment grew 23% year-over-year, boosted by large retailers adopting Shopify’s suite of solutions. Further, its business-to-business (B2B) segment continues to grow rapidly. For seven consecutive quarters, B2B GMV has grown at triple-digit rates, with a staggering 109% surge in Q1. This signals Shopify's increasing relevance in the wholesale and business-to-business commerce space.

Shopify’s Growth Story Is Far From Over

Shopify will likely deliver solid growth, led by its multi-pronged growth strategy. The company’s expansion of its merchant base and higher payment penetration will support its growth. Moreover, its aggressive push into offline sales channels and the growing B2B market are positives. These segments are gaining traction, adding new layers of opportunity beyond Shopify’s traditional e-commerce stronghold. Additionally, Shopify’s global expansion is opening up new markets, further broadening its revenue potential.

Shopify’s management said during the Q1 conference call that GMV has shown solid growth through April and early May. This trend indicates that the momentum in its business has sustained. SHOP's top line growth is expected to remain healthy, with management projecting a year-over-year increase in the mid-20% range.

Will Shopify Stock Hit $135?

Analysts’ opinions on SHOP stock are mixed. While analysts acknowledge Shopify’s strong fundamentals and growth prospects, some express caution due to the macro uncertainty and the stock’s solid run over the past year. Currently, analysts’ consensus rating is a “Moderate Buy.”

Nevertheless, Shopify’s long-term growth potential remains solid. Its focus on expanding and diversifying its merchant base, strength in the international, offline, and B2B businesses, product innovation,  use of AI, and operating leverage positions it well to deliver significant growth.

If Shopify continues to deliver robust growth, $135 seems well within reach.