Shopify Inc. (NASDAQ:SHOP) Receives Average Rating of “Moderate Buy” from Analysts

by · The Cerbat Gem

Shopify Inc. (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) has received an average rating of “Moderate Buy” from the forty-five research firms that are covering the company, Marketbeat reports. Nine equities research analysts have rated the stock with a hold rating, thirty-three have given a buy rating and three have given a strong buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $161.0278.

Several analysts have weighed in on SHOP shares. Piper Sandler reaffirmed an “overweight” rating and set a $150.00 target price (down from $165.00) on shares of Shopify in a research note on Tuesday, May 5th. BMO Capital Markets started coverage on shares of Shopify in a research note on Friday, July 10th. They set a “market perform” rating on the stock. BTIG Research initiated coverage on Shopify in a research report on Friday, July 10th. They issued a “buy” rating for the company. Zacks Research raised Shopify from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Finally, Citigroup dropped their price objective on Shopify from $156.00 to $150.00 and set a “buy” rating on the stock in a research note on Friday, July 24th.

Get Our Latest Stock Analysis on Shopify

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SHOP. Northside Capital Management LLC acquired a new position in shares of Shopify in the 2nd quarter worth $781,000. Canvas Wealth Advisors LLC grew its stake in Shopify by 1.1% during the 2nd quarter. Canvas Wealth Advisors LLC now owns 8,356 shares of the software maker’s stock valued at $954,000 after acquiring an additional 93 shares in the last quarter. Fiduciary Financial Group LLC acquired a new position in Shopify in the 2nd quarter valued at approximately $200,000. Doliver Advisors LP increased its stake in shares of Shopify by 13.3% in the second quarter. Doliver Advisors LP now owns 11,158 shares of the software maker’s stock worth $1,274,000 after acquiring an additional 1,310 shares during the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its position in Shopify by 387.2% in the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 19,347 shares of the software maker’s stock worth $2,209,000 after purchasing an additional 15,376 shares during the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

  • Positive Sentiment: Shopify reported second-quarter revenue of $3.58 billion, up 33.7% year over year, and adjusted EPS of $0.42, exceeding the roughly $0.40 consensus estimate. Profitability and operating income also beat expectations. Shopify Profit Jumps as Subscriptions, Merchant Services Boost Revenues
  • Positive Sentiment: The company forecast third-quarter revenue of approximately $3.7 billion to $3.8 billion, implying low-30% growth and topping the $3.6 billion analyst estimate. The outlook was a major catalyst for the stock’s move higher. Shopify expects Q3 revenue growth in the low 30s as it expands agentic commerce infrastructure
  • Positive Sentiment: Growth was broad-based: gross merchandise volume, revenue, gross profit and free cash flow each grew more than 30%, while free-cash-flow margin reached 18%. Subscription solutions and merchant services both contributed to the performance. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit and Free Cash Flow
  • Positive Sentiment: AI appears to be complementing rather than replacing Shopify’s platform. AI-referred traffic and orders reportedly tripled year over year, with tools such as ChatGPT and Gemini directing more shoppers to merchants. Shopify is expanding “agentic commerce” infrastructure to capture this trend. Shopify executive discusses AI and entrepreneurship
  • Neutral Sentiment: Shopify’s valuation remains demanding after the rally, with a reported price-to-earnings ratio above 140, leaving the stock sensitive to any slowdown in growth or disappointment in future guidance.
  • Negative Sentiment: CEO and governance-related comments, including support for a voting plan that could give wealthy taxpayers additional voting power, may create reputational or governance concerns, although they were not the primary driver of the trading session. Shopify CEO backs voting plan

Shopify Trading Up 17.0%

Shares of Shopify stock opened at $144.24 on Thursday. The stock has a market capitalization of $187.17 billion, a price-to-earnings ratio of 142.81, a PEG ratio of 2.66 and a beta of 2.58. Shopify has a twelve month low of $94.00 and a twelve month high of $182.19. The business’s 50 day simple moving average is $117.98 and its 200-day simple moving average is $119.65.

Shopify (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.02. The company had revenue of $3.58 billion during the quarter. Shopify had a net margin of 10.77% and a return on equity of 12.07%. The business’s revenue was up 33.7% compared to the same quarter last year. During the same period last year, the firm posted $0.69 EPS. Sell-side analysts predict that Shopify will post 1.4 earnings per share for the current year.

About Shopify

(Get Free Report)

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.

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