Shopify (NASDAQ:SHOP) Earns Outperform Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an "Outperform" rating on Shopify and set a $170 price target, implying roughly a 60% upside from current prices.
• Shopify reported strong Q1 results — revenue rose ~34% to $3.17 billion and merchants cleared over $100 billion in GMV, with management saying AI drove orders ~13x; EPS beat consensus at $999 versus $0.22 expected.
• Despite the beats, shares traded down to $106.34 (about -1.2%) as investors reacted to cautious guidance and margin concerns; the Street consensus is a "Moderate Buy" with an average target of $159.58 and mixed analyst ratings.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP's stock had its "outperform" rating restated by research analysts at Royal Bank Of Canada in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $170.00 price objective on the software maker's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 59.86% from the stock's current price.

Several other research firms also recently commented on SHOP. Truist Financial set a $150.00 target price on shares of Shopify and gave the stock a "buy" rating in a research report on Tuesday, February 17th. Mizuho raised shares of Shopify from a "neutral" rating to an "outperform" rating and set a $150.00 target price on the stock in a research report on Thursday, February 12th. KeyCorp reissued an "overweight" rating and set a $160.00 target price on shares of Shopify in a research report on Wednesday, February 11th. Scotiabank upgraded shares of Shopify from a "sector perform" rating to an "outperform" rating and upped their price target for the company from $165.00 to $200.00 in a report on Thursday, January 8th. Finally, BMO Capital Markets set a $160.00 price target on shares of Shopify in a report on Thursday, February 12th. Two research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $159.58.

Shopify Trading Down 1.2%

Shopify stock traded down $1.29 during mid-day trading on Wednesday, hitting $106.34. 11,559,668 shares of the company's stock were exchanged, compared to its average volume of 10,915,819. The stock has a market cap of $138.68 billion, a P/E ratio of 114.34, a P/E/G ratio of 4.53 and a beta of 2.64. Shopify has a 1-year low of $88.14 and a 1-year high of $182.19. The stock has a 50 day moving average of $122.10 and a two-hundred day moving average of $141.64.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors 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 shares of Shopify in the 4th quarter worth approximately $27,000. Evolution Wealth Management Inc. boosted its holdings in shares of Shopify by 203.9% in the 1st quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker's stock worth $27,000 after acquiring an additional 155 shares in the last quarter. Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of Shopify in the 4th quarter worth approximately $29,000. Finally, Lodestone Wealth Management LLC acquired a new position in shares of Shopify in the 4th quarter worth approximately $31,000. Institutional investors own 69.27% of the company's stock.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 revenue and GMV strength — Shopify reported Q1 revenue up ~34% to $3.17B and merchants cleared >$100B in GMV, topping revenue estimates and showing healthy demand growth. Shopify Q1 revenue rises 34% as GMV tops $100bn
• Positive Sentiment: AI momentum — Shopify said AI drove a large increase in orders/traffic (orders up ~13x in Q1, AI traffic up ~8x), which supports longer‑term merchant monetization and product differentiation. AI Drove Orders on Shopify Up 13 Times in Q1
• Positive Sentiment: Top analyst reaffirmation — Needham reiterated a "buy" with a $180 target, signaling some bullish conviction about Shopify’s longer‑term growth despite recent volatility. Benzinga
• Neutral Sentiment: Q2 revenue guide roughly in line — Shopify issued Q2 revenue guidance in the ~$3.4B–$3.5B range, which largely tracked Street expectations (limits upside surprise potential). Shopify press release
• Negative Sentiment: Cautious outlook and profit miss reaction — Despite the beats, management’s forward commentary and operating profit/margin concerns prompted a sharp selloff as investors focused on slowing growth and near‑term cost pressure. Globe and Mail
• Negative Sentiment: Analyst price‑target cuts — Wells Fargo trimmed its target to $144 (still "overweight") and DA Davidson cut to $140 (still "buy"), reducing some street upside expectations and contributing to selling pressure. Benzinga The Fly
• Negative Sentiment: Market narrative and coverage — Multiple outlets and commentators highlighted the same story: strong Q1 numbers paired with a softer near‑term outlook (including coverage that the AI pitch didn't offset cautious guidance), amplifying downside moves. Yahoo Finance

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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