Shopify (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) was upgraded by equities researchers at Sanford C. Bernstein to a “strong-buy” rating in a report issued on Thursday, Zacks reports.
Several other equities research analysts also recently issued reports on the stock. BTIG Research started coverage on shares of Shopify in a research note on Friday, July 10th. They issued a “buy” rating on the stock. Rosenblatt Securities began coverage on shares of Shopify in a research note on Thursday, August 20th. They set a “buy” rating and a $175.00 target price for the company. JPMorgan Chase & Co. increased their price target on shares of Shopify from $155.00 to $185.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Truist Financial set a $180.00 price target on shares of Shopify and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, Zacks Research downgraded shares of Shopify from a “strong-buy” rating to a “hold” rating in a report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $171.34.
Read Our Latest Stock Report on SHOP
Shopify Price Performance
Shopify (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) last released its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.02. The firm had revenue of $3.58 billion for the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%.The business’s quarterly revenue was up 33.7% compared to the same quarter last year. During the same period last year, the business earned $0.69 EPS. Research analysts anticipate that Shopify will post 1.45 EPS for the current year.
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the business. Kingdom Financial Group LLC. bought a new position in shares of Shopify in the fourth quarter valued at approximately $26,000. Curio Wealth LLC acquired a new position in Shopify in the fourth quarter valued at about $27,000. Lloyd Advisory Services LLC. bought a new position in Shopify during the 4th quarter worth approximately $31,000. Modus Advisors LLC bought a new position in shares of Shopify during the fourth quarter worth $34,000. Finally, JPL Wealth Management LLC bought a new position in Shopify during the third quarter worth about $32,000. Institutional investors and hedge funds own 69.27% of the company’s stock.
Key Shopify News
Here are the key news stories impacting Shopify this week:
- Positive Sentiment: Bernstein starts coverage at Outperform: Bernstein initiated coverage with a $160 price target, implying more than 26% upside from Thursday’s close. The firm said Shopify is well positioned to lead innovation in commerce, supporting the stock’s premarket strength. Shopify Shares Rise 2.5% as Bernstein Starts Coverage at Outperform
- Positive Sentiment: Operating leverage and AI-commerce potential: StoneX highlighted that Shopify’s headcount has remained flat for more than eight quarters while revenue grew roughly 34%, suggesting improving efficiency. Analysts also view Shopify’s AI commerce initiatives as a potential growth driver rather than an immediate threat. StoneX Backs Shopify on Agent Commerce Data
- Positive Sentiment: Expansion of merchant services: Analysts remain constructive after Shopify’s reported 34% revenue growth, strong gross merchandise volume and $654 million in free cash flow. The planned expansion of Shop Pay Installments into Australia and the addition of Tailwind Labs’ team could strengthen Shopify’s merchant ecosystem and custom-storefront capabilities. Shopify: Buy The Affirm Australia Expansion, But Do Not Chase Blindly
- Neutral Sentiment: Recent selloff leaves technical and valuation questions: SHOP recently fell below a key technical level and remains below its 50-day moving average, although it is above its 200-day average. With a price-to-earnings ratio near 87, investors may be reluctant to chase the rebound despite the bullish $160 target. Turn Shopify Stock Sell-Off Into A Profit Opportunity With This Spread Strategy
- Negative Sentiment: AI-agent competition remains a concern: The launch of consumer AI agents from companies including Meta has weighed on confidence in Shopify, contributing to a sharp recent decline. The bullish view is that these agents may ultimately drive more commerce through Shopify’s infrastructure, but that thesis is not yet proven. Why Meta’s Consumer AI Agent Is Good News for Shopify Stock
Shopify Company Profile
Shopify Inc (NASDAQ:SHOP) is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow retail operations. Its platform enables merchants to create and manage online stores, sell through social media and other digital channels, and support in-person sales through Shopify’s point-of-sale solutions.
Shopify’s products and services include online storefront and website-building tools, payment processing through Shopify Payments, point-of-sale hardware and software, inventory and order management, shipping and fulfillment tools, marketing features, analytics, and financing services for eligible merchants.
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