Shares of Shopify Surge to Surpass RBC as the Largest Company in Canada

Shopify Inc. soared on Wednesday, reclaiming its position as Canada’s most valuable publicly traded company after delivering what Citigroup analysts described as a “blowout” quarterly earnings report.

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The e-commerce giant’s market capitalization climbed to C$275 billion, once again surpassing Royal Bank of Canada (RBC). Shopify first overtook the country’s largest bank five years ago but lost the top spot in 2022 during what market watchers dubbed the “Canadian market curse.”

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This term refers to a trend where companies briefly surpass RBC’s valuation only to see their stock prices plummet afterward a pattern seen with BlackBerry Ltd., Encana, and Nortel Networks in previous years.

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Following the release of its stronger-than-expected earnings, Shopify’s shares surged 21% as of 9:46 a.m. in New York trading, marking a sharp rebound and restoring investor confidence in the Ottawa-based tech company.

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According to analyst Anurag Rana, Shopify continues to expand its dominance in the global e-commerce sector, particularly outside North America.

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In a research note, Rana attributed this growth to the company’s success in attracting larger merchants to its platform, rather than temporary demand shifts caused by tariffs. “Given the robust sales outlook for the third quarter, this is more about strategic merchant acquisition than any tariff-driven boost,” Rana wrote.

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Citigroup Global Market analyst Tyler Radke echoed this bullish sentiment, noting that Shopify delivered a remarkably strong second-quarter performance despite broader macroeconomic uncertainties and ongoing trade-related concerns.

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“Shopify effectively powered through tariff and economic challenges with outstanding results,” Radke commented.

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Heading into this earnings report, investor sentiment toward Shopify was mixed.

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However, Radke emphasized that the company’s “blowout” quarter with gross merchandise volume (GMV) growth outpacing expectations, accelerating revenue streams, and upgraded top-line guidance should help ease any lingering worries about the upcoming third quarter.

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“Our initial take is that Shopify’s results reflect not only sustained market share gains but also a possible increase in purchasing activity ahead of planned de minimis tariffs,” Radke explained.

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With this earnings surprise, Shopify has reasserted itself as a dominant player in Canada’s corporate landscape and reaffirmed its growth trajectory in the competitive e-commerce market. The strong quarter highlights the company’s ability to scale globally, onboard larger enterprises, and maintain resilience even in a challenging trade environment.

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