Shopify (NASDAQ:SHOP) Posts Earnings Results, Beats Estimates By $998.78 EPS
by Amy Steele · The Cerbat GemShopify (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) posted its quarterly earnings results on Tuesday. The software maker reported $999.00 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $998.78, reports. Shopify had a net margin of 10.65% and a return on equity of 11.52%.
Shopify Stock Down 9.2%
Shares of SHOP stock traded down $11.72 during trading hours on Tuesday, hitting $115.83. 10,638,302 shares of the company were exchanged, compared to its average volume of 10,561,582. The firm has a market cap of $151.06 billion, a PE ratio of 124.55, a PEG ratio of 4.54 and a beta of 2.64. Shopify has a 1 year low of $88.14 and a 1 year high of $182.19. The firm has a fifty day moving average of $122.49 and a 200 day moving average of $141.99.
Wall Street Analysts Forecast Growth
Several equities research analysts recently commented on SHOP shares. Needham & Company LLC reiterated a “buy” rating and issued a $180.00 price objective on shares of Shopify in a research report on Thursday, February 12th. Barclays set a $130.00 price objective on shares of Shopify and gave the stock an “equal weight” rating in a research report on Thursday, February 12th. Truist Financial set a $150.00 price objective on shares of Shopify and gave the stock a “buy” rating in a research report on Tuesday, February 17th. KeyCorp reiterated an “overweight” rating and issued a $160.00 price objective on shares of Shopify in a research report on Wednesday, February 11th. Finally, Wells Fargo & Company decreased their price objective on shares of Shopify from $191.00 to $166.00 and set an “overweight” rating on the stock in a research report on Monday, April 6th. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $164.19.
Get Our Latest Analysis on SHOP
Trending Headlines about Shopify
Here are the key news stories impacting Shopify this week:
- Positive Sentiment: Q1 beat on EPS and revenue: Shopify reported Q1 EPS of $0.36, above the Zacks consensus of $0.32, and topped revenue expectations — a sign the business is growing while moving toward profitability. Shopify (SHOP) Tops Q1 Earnings and Revenue Estimates
- Positive Sentiment: Strong top-line momentum & merchant activity: Shopify reported ~34% revenue growth and merchants cleared over $100 billion in Q1 GMV, reinforcing platform demand and ecosystem strength. Shopify Delivers Again as Merchants Clear $100 Billion in Q1 GMV
- Positive Sentiment: Profitability progress: WSJ and company commentary note a narrowed loss and rising subscription revenue, with free cash flow margins reported around 15% — evidence Shopify is improving unit economics even as it invests. Shopify Loss Narrows as Revenue Climbs on Subscription
- Neutral Sentiment: Q2 guidance roughly in line: the company issued revenue guidance around the mid-$3.4B range for Q2 (roughly consistent with consensus), which reduces the element of an upside surprise and likely tempered investor enthusiasm. (Company release / briefing)
- Positive Sentiment: Analyst views: some outlets highlight that Wall Street still sees meaningful upside after the recent pullback (average price target materially above current levels), suggesting longer-term upside if growth/margin execution continues. Analysts See 27% Upside for Shopify After 30% Selloff
- Negative Sentiment: Margin and investment concerns: analysts and previews warned that Shop Pay, AI initiatives and other growth investments could pressure near-term margins — investors may be selling into a beat because the company is prioritizing growth over near-term margin expansion. Shopify Stock Before Q1 Earnings: Smart Buy or Risky Move?
- Negative Sentiment: High valuation + recent selloff increases volatility: Shopify’s premium multiple and high beta mean even good results can spark pronounced price moves; the recent large drawdown left expectations and positioning fragile. Shopify Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts
Institutional Inflows and Outflows
Large investors have recently modified their holdings of the stock. JPL Wealth Management LLC purchased a new position in shares of Shopify during the 3rd quarter worth about $32,000. Strive Financial Group LLC purchased a new position in shares of Shopify during the 4th quarter worth about $40,000. Swiss RE Ltd. purchased a new position in shares of Shopify during the 4th quarter worth about $45,000. Osterweis Capital Management Inc. purchased a new position in shares of Shopify during the 2nd quarter worth about $53,000. Finally, Colonial Trust Co SC lifted its holdings in shares of Shopify by 31.5% during the 4th quarter. Colonial Trust Co SC now owns 447 shares of the software maker’s stock worth $72,000 after acquiring an additional 107 shares during the period. 69.27% of the stock is currently owned by hedge funds and other institutional investors.
Shopify Company Profile
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.