Shopify Was Supposed to Be an AI Casualty. Its AI-Referred Traffic Just Tripled.

Shopify (SHOP) reported Q2 earnings that flipped the AI narrative: AI-referred traffic and orders tripled year-over-year, with new buyers from AI channels converting at nearly twice the rate of traditional channels. The company had been written off by some as vulnerable to AI disintermediation, but instead appears to be capturing demand from the shift.

The core business also accelerated. Revenue climbed 34% to $3.6 billion, while gross merchandise volume grew 32% to $115.6 billion. The growth marks a reacceleration from recent quarters and suggests the e-commerce platform is benefiting from both AI-driven discovery and sustained merchant adoption.

The valuation remains stretched. Shopify trades at 70 times forward earnings, leaving little room for execution missteps. The strong Q2 print may already be reflected in the multiple, particularly given the stock's run heading into the report.