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Rowan Street Capital highlights Shopify amid market and business divergence
In its Q2 2026 investor letter, the firm pointed to Shopify revenue growth of 34% year over year to $3.2 billion and GMV rising 35% to $101 billion.
Rowan Street Capital, an investment management firm, released its Q1 2026 investor letter and cited the idea that stock prices can diverge from underlying business performance, a pattern the firm described as common in long-term investing.
In the letter’s Q2 2026 investor update, the firm highlighted Shopify Inc. (NASDAQ: SHOP) and noted that the update reflects the company’s Q1 results as Shopify was set to report Q2 results on August 5. Shopify closed on July 31, 2026 at $117.15 per share and had a market capitalization of $152.02 billion, with shares down 6.4% over the past 52 weeks and down 2.5% over the prior month.
Rowan Street Capital said Shopify delivered another quarter of growth, with revenue up 34% year over year to $3.2 billion and gross merchandise volume increasing 35% to $101 billion, marking a second consecutive quarter above the $100 billion threshold. The firm also pointed to broad-based growth including B2B revenue up 80%, Shop Pay revenue up 59%, a free cash flow margin of 15%, and core operating income more than doubling to $382 million.
The letter said investor attention is focused on the potential impact of AI-powered shopping agents as more consumers use conversational AI to search and buy, while it argued that business performance, not short-term market enthusiasm, should ultimately drive investment returns.
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