Shopify stock soars 20% on rosy guidance as CFO says tariff hit 'did not materialize'

Shopify said it expects revenue to grow at a "mid-to-high twenties percentage rate" year over year, which is higher than the 21.7% growth jected by analysts, according to StreetAccount.The upbeat report and guidance suggested Shopify, which sells software for e-commerce es, is navigating President Donald Trump's trade war better than feared

Last quarter, the company noted there was macroeconomic "uncertainty ahead," but that it wasn't seeing significant price increases among its merchants due to the tariffs."We had factored into our guidance some potential impact from tariffs, which did not materialize," Shopify CFO Jeff Hoffmeister said on a conference call with investors.Read more CNBC newsNvidia's set to regain some China access

But it still faces eroding AI chip market Ethereum turns 10: From scrappy experiment to Wall Street's invisible backboneGoogle has dropped more than 50 DEI-related organizations from one of its funding listsAmazon stock sinks after earnings: Here are the key takeawaysOnline retail peers Amazon and eBay last week reported strong revenue growth, indicating that consumers kept buying despite concerns of tariffs and rising prices.The company hasn't seen any "drops in U.S. demand, whether inbound, outbound or local" and instead saw the market accelerate in the second quarter, Hoffmeister said

Many Shopify merchants have raised prices, he added.Shoppers don't appear to be stocking up or pulling forward demand in anticipation of the tariffs, he said."So far we're seeing no slowdown from the tariffs and that includes up until early August, where we are today," Shopify President Harley Finkelstein said in an interview on CNBC's "Squawk on the Street." "The millions of stores on Shopify are doing really, really well."Shopify's gross merchandise sales, or the total volume of merchandise sold on the platform, also came in higher than expected

GMS grew 29% year over year to $87.8 billion, surpassing Wall Street's jected $81.5 billion, according to StreetAccount.The company said it expects operating expenses as a percentage of revenue to be 38% to 39%, compared to 39% to 40% in the previous quarter.Shopify has been heavily in adding more artificial intelligence tools to its platform as a way to attract and retain merchants

In May, the company released an "AI store builder" that generates webstores based on a few keywords

Shopify on Tuesday launched a set of tools to support shopping via AI agents.Company executives said these investments appear to be paying off."As we continue to expand our platforms capabilities, add new ducts, and build for where commerce is heading, Shopify is becoming even more compelling to a wider range of es than ever before," Hoffmeister said.WATCH: Shopify President: We do well in times of disruptionwatch now5:4405:44Shopify president Harley Finkelstein: Shopify tools help merchants navigate tariffsSquawk on the Street