Shopify Inc. (NASDAQ:SHOP – Get Free Report) (TSE:SHOP)’s share price dropped 4.4% on Wednesday . The stock traded as low as $94.56 and last traded at $95.40. 20,110,881 shares were traded during mid-day trading, an increase of 76% from the average daily volume of 11,443,391 shares. The stock had previously closed at $99.84.
Key Headlines Impacting Shopify
Here are the key news stories impacting Shopify this week:
- Positive Sentiment: Analysts highlighted accelerating growth in Shopify’s core business, pointing to Q1 2026 revenue up 34% year over year, strong merchant-solution adoption, GMV growth, and surging free cash flow tied to AI-powered tools and e-commerce demand. Shopify: Growth Acceleration (Rating Upgrade)
- Positive Sentiment: Multiple ecosystem updates underscore Shopify’s platform strength, including new partner integrations from Bazaarvoice, Noibu, Emersoft, and SureDone that expand merchant tools, analytics, and multichannel commerce capabilities. SureDone Launches Mobile App, Bringing Amazon, eBay and Shopify Listing Management Into One Mobile Experience
- Positive Sentiment: Zacks said Shopify’s AI-driven traffic and order volume are booming, suggesting its AI features are beginning to translate into measurable merchant activity and could support the stock’s long-term growth story. Shopify’s AI Channels Are Booming: What They Mean for the Stock
Wall Street Analyst Weigh In
Several research firms have recently commented on SHOP. Benchmark decreased their price objective on Shopify from $195.00 to $145.00 and set a “buy” rating on the stock in a report on Tuesday, February 10th. Mizuho upgraded Shopify from a “neutral” rating to an “outperform” rating and set a $150.00 target price for the company in a report on Thursday, February 12th. Needham & Company LLC restated a “buy” rating and set a $180.00 price target on shares of Shopify in a research report on Tuesday, May 5th. Stifel Nicolaus set a $115.00 price target on Shopify and gave the stock a “hold” rating in a research note on Wednesday, February 11th. Finally, Citizens Jmp lowered their price objective on Shopify from $160.00 to $150.00 and set a “market outperform” rating for the company in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $158.42.
Shopify Stock Down 4.4%
The company has a market capitalization of $124.41 billion, a PE ratio of 94.46, a price-to-earnings-growth ratio of 2.89 and a beta of 2.64. The stock’s fifty day moving average price is $120.67 and its two-hundred day moving average price is $139.71.
Shopify (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) last announced its quarterly earnings results on Tuesday, May 5th. The software maker reported $999.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $998.78. The company had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. Shopify had a return on equity of 12.07% and a net margin of 10.77%. On average, equities research analysts forecast that Shopify Inc. will post 1.36 EPS for the current year.
Hedge Funds Weigh In On Shopify
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new position in Shopify during the 4th quarter valued at $2,611,797,000. Jennison Associates LLC lifted its position in shares of Shopify by 64.3% in the 3rd quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock worth $2,812,211,000 after purchasing an additional 7,403,821 shares during the period. Sands Capital Management LLC boosted its stake in shares of Shopify by 37.0% during the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker’s stock valued at $1,530,187,000 after purchasing an additional 2,568,765 shares in the last quarter. Invesco Ltd. increased its position in shares of Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock valued at $2,257,796,000 after buying an additional 1,252,074 shares during the period. Finally, Thrivent Financial for Lutherans raised its stake in Shopify by 7,207.2% in the fourth quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker’s stock worth $184,883,000 after buying an additional 1,132,545 shares in the last quarter. Institutional investors own 69.27% of the company’s stock.
About Shopify
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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