Shopify (NASDAQ:SHOP) Earns Outperform Rating from Wedbush

Shopify (NASDAQ:SHOP) (TSE:SHOP)‘s stock had its “outperform” rating reaffirmed by equities researchers at Wedbush in a note issued to investors on Wednesday, Benzinga reports. They currently have a $176.00 price target on the software maker’s stock. Wedbush’s target price indicates a potential upside of 19.13% from the company’s current price.

A number of other analysts have also weighed in on SHOP. Weiss Ratings upgraded Shopify from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, August 17th. DA Davidson set a $200.00 price objective on Shopify and gave the stock a “buy” rating in a research note on Thursday, August 6th. Zacks Research downgraded Shopify from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 7th. Sanford C. Bernstein initiated coverage on Shopify in a research note on Thursday, September 10th. They issued an “outperform” rating and a $160.00 target price on the stock. Finally, National Bank Financial reaffirmed an “outperform” rating and issued a $180.00 price objective (up from $155.00) on shares of Shopify in a research report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $171.34.

Shopify Trading Up 7.1%

NASDAQ SHOP opened at $147.74 on Wednesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The company has a market capitalization of $190.09 billion, a price-to-earnings ratio of 99.82, a price-to-earnings-growth ratio of 2.80 and a beta of 2.61. The company’s 50-day simple moving average is $137.23 and its two-hundred day simple moving average is $123.75. Shopify has a one year low of $94.00 and a one year high of $182.19.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.02. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The firm had revenue of $3.58 billion during the quarter. During the same period in the previous year, the company posted $0.69 EPS. Shopify’s revenue for the quarter was up 33.7% on a year-over-year basis. Equities analysts forecast that Shopify will post 1.46 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new stake in Shopify during the 4th quarter worth approximately $2,611,797,000. Invesco Ltd. grew its stake in shares of Shopify by 9.8% during the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after purchasing an additional 1,252,074 shares during the period. Geode Capital Management LLC grew its holdings in Shopify by 6.2% in the fourth quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock valued at $2,043,365,000 after purchasing an additional 737,892 shares during the last quarter. Sands Capital Management LLC grew its position in shares of Shopify by 37.0% in the fourth 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 during the last quarter. Finally, TD Asset Management Inc increased its position in Shopify by 2.2% during the 4th quarter. TD Asset Management Inc now owns 8,713,762 shares of the software maker’s stock worth $1,404,790,000 after purchasing an additional 185,252 shares in the last quarter. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Meta’s Muse partnership is the main catalyst. Meta’s AI shopping agent, Muse, can browse Shopify-powered stores and complete purchases using Shopify’s Shop Pay checkout. Investors see the agreement as a way for Shopify to gain transaction volume, merchant visibility and relevance in the emerging “agentic commerce” market. Shopify Brings Shop Pay Checkout Solution to Meta’s Muse AI Agent
• Positive Sentiment: Shopify may benefit from a favorable strategic position versus Amazon. Amazon is reportedly blocking Muse, while Shopify is enabling the AI agent across its merchant network. That contrast supports the view that Shopify could become an important infrastructure provider as consumers increasingly shop through AI assistants. Amazon and Shopify Make Starkly Different Moves in the Brewing Battle Over AI Shopping
• Positive Sentiment: Third-party adoption highlights broader checkout demand. India-focused messaging company MSG91 is promoting a Shopify checkout solution for direct-to-consumer brands, potentially supporting merchant adoption and international usage of Shopify’s commerce tools. The report does not disclose a direct financial contribution to Shopify. MSG91 Expands Into E-Commerce
• Neutral Sentiment: Options activity signals bullish speculation but adds no fundamental change. Trading data showed unusually heavy call-option volume in Shopify, suggesting increased short-term investor interest. Options activity can amplify volatility, but it does not by itself indicate future operating results. Shopify Sees Unusually Large Options Volume

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.