Shopify (SHOP  ) closed at new, all-time highs following its better than expected second-quarter results. The numbers were so strong that it resulted in gains for other e-commerce stocks like Wayfair (W  ) and Etsy (ETSY  ), as investors are raising their estimates for total online spending in the quarter which would benefit these companies.

Inside the Numbers

Shopify reported earnings of 29 cents per share which beat consensus estimates of 1 cent per share. It's a significant improvement from last year's 26 cents per share loss in the same quarter. Total revenue increased 97% to $714.3 million and marks the second, straight quarter of accelerating revenue growth. Additionally, sellers on its platform sold a total amount of $30.1 billion in the quarter. Monthly recurring revenues hit $57 million which is a 21% increase from 2019's second quarter.

Shopify declined to provide guidance for the next quarter or full-year due to the uncertainty of the coronavirus. However, the company has benefitted from the pandemic as it helps businesses easily sell online. Even before the coronavirus, online spending was growing at between 14 to 18% a year compared to overall retail spending of 2 to 3% a year. Due to shutdowns and health concerns, the pandemic has been an accelerant of this trend. While growth rates will certainly moderate, when conditions normalize, it's fast-forwarded the timeline.

Stock Price Impact

Shopify's shares opened 11% higher but there was some profit-taking during the trading session. It's a market-leading growth stock by any definition. Like many of the premier, growth stocks of past bull markets, it has a high multiple, and many investors think the stock is overpriced and prone to collapse. And, it's certainly true that most growth stocks do give up a big chunk of their gains when they fail to realize investors' lofty expectations.

However, there's also a group of growth stocks with high multiples that do realize investors' expectations. Companies like Facebook (FB  ), Google (GOOG  ), and Microsoft (MSFT  ) were in this category with a price to sales ratio of high triple or four digits. Yet, they continued to maintain their growth trajectories, high margins, and have grown into these valuations.

It's increasingly likely that Shopify is going to be in this category. Its stock has outperformed on nearly every timeframe. Since its debut in 2015, the stock is up 6,000%. Since the March bottom in stocks, it's up 245%. Historically, stocks that beat earnings by a significant margin tend to drift higher over the coming weeks as funds and investors update their models for the company's future performance.