Canaccord Genuity Group Has Lowered Expectations for Shopify (NASDAQ:SHOP) Stock Price

Key Points

• Canaccord Genuity cut its price target on Shopify from $165 to $145 but maintained a "buy" rating, implying roughly a 37.5% upside from the current share price.
• Shopify beat Q1 expectations with $3.17B in revenue, GMV above $100B and strong AI‑driven order growth, but management's cautious Q2 guidance and higher AI costs sparked a sharp post‑earnings selloff and renewed margin concerns.
• Shares traded down to about $105.44 on heavy volume (~24.6M vs. avg 11.1M), showing valuation compression despite a MarketBeat consensus target of $158.42, widespread "Buy" ratings, and roughly 69% institutional ownership.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price objective dropped by stock analysts at Canaccord Genuity Group from $165.00 to $145.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the software maker's stock. Canaccord Genuity Group's price target suggests a potential upside of 37.52% from the company's current price.

Several other research analysts have also recently commented on the stock. TD Securities upgraded shares of Shopify from a "hold" rating to a "buy" rating and set a $159.00 target price for the company in a report on Thursday, February 12th. Needham & Company LLC reiterated a "buy" rating and issued a $180.00 target price on shares of Shopify in a report on Tuesday. Evercore set a $135.00 target price on shares of Shopify in a report on Wednesday, February 11th. TD Cowen upgraded shares of Shopify from a "hold" rating to a "buy" rating and set a $159.00 target price for the company in a report on Wednesday, February 11th. Finally, Barclays set a $126.00 target price on shares of Shopify and gave the stock an "equal weight" rating in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $158.42.

Shopify Price Performance

Shares of SHOP traded down $2.19 during mid-day trading on Wednesday, hitting $105.44. The company's stock had a trading volume of 24,588,981 shares, compared to its average volume of 11,076,570. The firm has a 50-day moving average price of $122.10 and a 200 day moving average price of $141.64. The stock has a market capitalization of $137.51 billion, a price-to-earnings ratio of 113.38, a PEG ratio of 4.53 and a beta of 2.64. Shopify has a fifty-two week low of $88.14 and a fifty-two week high of $182.19.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported $999.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $998.78. The company had revenue of $3.17 billion for the quarter, compared to analysts' expectations of $3.08 billion. Shopify had a net margin of 10.65% and a return on equity of 11.52%. As a group, equities analysts anticipate that Shopify will post 1.36 EPS for the current fiscal year.

Institutional Trading of Shopify

A number of institutional investors have recently added to or reduced their stakes in the business. Gryphon Financial Partners LLC lifted its stake in Shopify by 3.5% in the first quarter. Gryphon Financial Partners LLC now owns 152,807 shares of the software maker's stock valued at $18,126,000 after acquiring an additional 5,154 shares during the last quarter. Assetmark Inc. lifted its stake in Shopify by 2.6% in the first quarter. Assetmark Inc. now owns 219,104 shares of the software maker's stock valued at $25,990,000 after acquiring an additional 5,521 shares during the last quarter. PeakShares LLC acquired a new stake in Shopify in the first quarter valued at approximately $119,000. Main Street Group LTD acquired a new stake in Shopify in the first quarter valued at approximately $101,000. Finally, Angeles Wealth Management LLC lifted its stake in Shopify by 182.0% in the first quarter. Angeles Wealth Management LLC now owns 3,582 shares of the software maker's stock valued at $425,000 after acquiring an additional 2,312 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors and hedge funds.

More Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 beat and strong top-line growth — Shopify reported revenue up ~34% and Gross Merchandise Volume (GMV) above $100B, driven by B2B, offline scale and Sidekick AI adoption, underscoring durable demand across merchant channels. Shopify Q1 Earnings Beat Estimates, Revenues Rise on Strong GMV Growth
• Positive Sentiment: AI is boosting order traffic — Shopify said AI-driven traffic/orders surged sharply (orders up many-fold YoY), which supports long-term monetization upside if conversion and margins hold. AI Drove Orders on Shopify Up 13 Times in Q1
• Positive Sentiment: Wall Street still shows conviction from some shops — a few firms (RBC, Needham) reaffirmed high upside targets and buy/outperform ratings, indicating that some analysts view the pullback as a valuation opportunity. Analyst Notes / Ratings
• Neutral Sentiment: Industry hires and ecosystem activity — talent moves (e.g., a former Shopify exec joining Semgrep) show Shopify alumni remain influential in e‑commerce/AI spaces but do not materially change Shopify’s near-term outlook. Semgrep Hires Veteran Engineering Leader
• Positive Sentiment: Heavy call buying — unusually large call-option volume suggests speculative or institutional interest in upside after the post‑earnings pullback (could increase volatility and upside pressure if positions are directional).
• Negative Sentiment: Softened outlook and profit concerns — despite the beat, management’s Q2 commentary/guidance signaled slower growth and higher costs (including AI investments), which was the primary driver of the sharp post‑earnings selloff. Shopify Stock Tumbles On Q2 Revenue, Operating Income Outlook
• Negative Sentiment: Multiple price-target cuts — several banks trimmed targets (DA Davidson, Wells Fargo, Citi, BMO, Citizens Jmp), tightening near-term sentiment even where ratings stayed constructive; that broad downgrade activity amplifies selling pressure. Analyst Price Target Changes
• Negative Sentiment: Margins and profitability questions — some outlets flagged a sizeable loss or missed operating profit expectations and higher AI costs, raising short‑term profit skepticism. Shopify shares slide on Q1 loss and cautious guidance
• Negative Sentiment: Valuation compression — analysts and commentators note SHOP’s sharp YTD decline and valuation reset, which can prolong selling even if fundamentals improve. Assessing Shopify (SHOP) Valuation After Recent Share Price Weakness

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.

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