Story
Shopify Soars on Earnings Beat as AMD Slides on Weak AI Outlook
Shares of Shopify surged more than 25% in premarket trading Wednesday following a strong quarterly earnings report, while chipmaker Advanced Micro Devices saw its stock fall sharply after its revenue outlook raised concerns about its growth in the artificial intelligence sector.
Shopify's Strong Performance
Shopify reported second-quarter revenue of $3.58 billion, significantly exceeding analyst expectations of $3.45 billion. The e-commerce platform also posted adjusted earnings per share of $0.42, which was also ahead of estimates.
Investors were further encouraged by strong underlying business metrics. The company's Gross Merchandise Volume (GMV) rose 32% from the same period a year earlier, and free cash flow climbed to $654 million, signaling accelerating growth and strengthening financial health.
AMD Faces Headwinds
In contrast, shares of Advanced Micro Devices (AMD) fell 8.8% in premarket activity. The chipmaker's revenue outlook failed to convince investors that the ongoing boom in AI-related spending would translate into faster growth for the company.
AdMarket sentiment was also impacted by a report that privately held SpaceX will build its computing infrastructure exclusively with chips from rival Nvidia. This development underscored the competitive challenges AMD faces in securing contracts from marquee customers in the high-stakes AI market.
Other Market Movers
Several other companies saw significant moves based on their earnings reports:
- Eli Lilly (LLY): Gained 5.7% after another strong earnings beat and an increased full-year revenue forecast, driven by high demand for its weight-loss and diabetes drugs.
- Digital Turbine (APPS): Soared 28.2% after posting higher-than-expected quarterly revenue and profit while raising its full-year guidance.
- Match Group (MTCH): Declined 10.2% after reporting weaker-than-expected revenue and forecasting a continued drop in paying users.
- Pinterest (PINS): Fell 9% after its third-quarter revenue outlook suggested slowing growth, overshadowing better-than-expected current results.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.