The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Shopify (NASDAQ: SHOP) and the rest of the e-commerce software stocks fared in Q1.
While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions.
The 4 e-commerce software stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.3% since the latest earnings results.
Best Q1: Shopify (NASDAQ: SHOP)
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Shopify reported revenues of $3.17 billion, up 34.3% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA and gross merchandise volume estimates.
Shopify achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 19.7% since reporting and currently trades at $102.44.
Commerce (NASDAQ: CMRC)
As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.
Commerce reported revenues of $86.84 million, up 5.4% year on year, outperforming analysts’ expectations by 4.6%. The business had a strong quarter with a solid beat of analysts’ billings and EBITDA estimates.
Commerce achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $2.86.
Is now the time to buy Commerce? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Wix (NASDAQ: WIX)
Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.
Wix reported revenues of $541.2 million, up 14.3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and revenue in line with analysts’ estimates.
Wix delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 26.3% since the results and currently trades at $55.90.
Read our full analysis of Wix’s results here.
GoDaddy (NYSE: GDDY)
Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.
GoDaddy reported revenues of $1.27 billion, up 6.1% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue estimates.
GoDaddy had the weakest full-year guidance update among its peers. The stock is up 5.4% since reporting and currently trades at $91.48.
Read our full, actionable report on GoDaddy here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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