Artificial intelligence (AI) is everywhere. It’s amazing that just a few short years ago, none of us knew anything about ChatGPT or using AI. And yet, it has been creeping in for years. And we have seen some AI-enabled companies shoot up long before we were using AI to do a lot of our dirty work.
One of those AI stocks that’s shot up and continues to rise is Shopify (TSX:SHOP). After growing massively between 2015 and 2020, the company came back down to earth. Now, it’s a cleaner, meaner-looking investment, especially for long-term investors. So let’s look at why this AI stock might be the one that belongs in your long-term growth portfolio.
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Into earnings
Now that we know a bit about the past, let’s look at what’s been happening lately. Shopify recently reported its quarter ending June 30, 2025. The AI stock reported a 31% increase in revenue for the quarter, marking the eighth consecutive quarter of double-digit free cash flow margins.
What’s more, Shopify reported a 16% free cash flow margin, demonstrating its strong operational efficiency. And now, it’s on the move. Shopify saw growth in North America, Europe, and the Asia Pacific. Europe, in particular, achieved major gross merchandise volume (GMV) growth at 42%.
So what more could we possibly want? AI might be here, but now practically everyone and their mother uses it. That means the growth opportunities that were once available for investors to get in on the ground floor are no longer there. So where is this top AI stock headed next?
Future outlook
Luckily, investors got a peak at that, too. Shopify reported that for the third quarter of 2025, the company expects revenue growth in the mid-to-high twenties percentage range year-over-year. That would be incredible performance for the rest of the year. Furthermore, it projected growth in gross profit dollars in the low-twenties percentage range.
As for expenses and compensation, the AI stock believes it will see operating expenses at 38% to 39% of revenue, as well as $130 million in stock-based compensation. So for investors thinking that the best is over, it seems as though this AI stock is just getting started.
In fact, as Shopify continues to expand from small businesses to some of the largest names on the planet, there’s one thing we can’t forget. That’s Black Friday. The AI stock has historically performed incredibly well, breaking records again and again. And now, we’re right in the middle of that quarter.
Considerations
Now, the only thing you won’t get with Shopify stock is a dividend. The company is a leading global commerce company spending its cash on growth, not income, for investors. What’s more, economic conditions will certainly play a role in how the company performs, as it depends on consumer and business spending.
Yet even so, this $265 billion company holds a strong market presence. With a profit margin at 23.4% and operating margin at 14.2%, it’s now healthier than ever. And while its beta of 2.7 suggests it’s still on the more volatile side, that tends to fall to the wayside when considering the AI stock as a long-term hold.
Bottom line
Shopify stock is a strong company only getting stronger. While there are others like it, the AI stock has proven it can be one of the most successful e-commerce companies on the planet. And if you consider this AI stock, you might just hold one of the best portfolios on the planet as well.
