Shopify (NASDAQ:SHOP) Price Target Lowered to $140.00 at DA Davidson

Key Points

• DA Davidson cut its price target on Shopify from $195 to $140 but kept a "buy" rating, implying roughly a 31% upside from the prior close.
• Shopify's Q1 beat revenue and key metrics — roughly 34% revenue growth, merchants cleared $100B in GMV and AI-driven orders accelerated — yet disappointing operating profit and softened near-term guidance sparked heavy selling.
• Analyst views remain mixed: the Street's consensus is a Moderate Buy with an average target of $161.86, while individual price targets span about $126 to $195, showing disagreement over growth versus profitability outlooks.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price target decreased by research analysts at DA Davidson from $195.00 to $140.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the software maker's stock. DA Davidson's target price would suggest a potential upside of 31.11% from the company's previous close.

A number of other equities analysts have also recently issued reports on SHOP. BMO Capital Markets set a $160.00 target price on Shopify in a report on Thursday, February 12th. Barclays set a $126.00 price target on Shopify in a research note on Wednesday. Wells Fargo & Company reduced their price objective on shares of Shopify from $191.00 to $166.00 and set an "overweight" rating on the stock in a research note on Monday, April 6th. Piper Sandler restated an "overweight" rating and set a $150.00 price objective on shares of Shopify in a report on Tuesday. Finally, Mizuho raised shares of Shopify from a "neutral" rating to an "outperform" rating and set a $150.00 target price for the company in a research note on Thursday, February 12th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $161.86.

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Shopify Stock Performance

SHOP opened at $106.78 on Wednesday. The company has a fifty day moving average price of $122.10 and a two-hundred day moving average price of $141.64. The firm has a market capitalization of $139.25 billion, a PE ratio of 114.82, a P/E/G ratio of 4.53 and a beta of 2.64. Shopify has a 52 week low of $88.14 and a 52 week high of $182.19.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last posted its quarterly earnings results 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. Shopify had a return on equity of 11.52% and a net margin of 10.65%. Equities analysts forecast that Shopify will post 1.36 EPS for the current year.

Institutional Trading of Shopify

Several hedge funds have recently bought and sold shares of the stock. Knights of Columbus Asset Advisors LLC acquired a new position in Shopify during the third quarter worth $4,110,000. Principal Financial Group Inc. increased its stake in Shopify by 16.3% in the 3rd quarter. Principal Financial Group Inc. now owns 450,895 shares of the software maker's stock valued at $67,006,000 after buying an additional 63,300 shares during the last quarter. Triton Financial Group Inc bought a new stake in Shopify during the 3rd quarter worth about $1,931,000. IQ EQ FUND MANAGEMENT IRELAND Ltd lifted its position in Shopify by 65.5% during the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 158,514 shares of the software maker's stock worth $23,557,000 after buying an additional 62,743 shares in the last quarter. Finally, Triasima Portfolio Management inc. boosted its stake in shares of Shopify by 11.0% during the 4th quarter. Triasima Portfolio Management inc. now owns 182,338 shares of the software maker's stock worth $29,398,000 after buying an additional 18,028 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors and hedge funds.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 revenue and key metrics beat expectations — Shopify reported ~34% revenue growth, merchants cleared $100B GMV, and AI-driven orders and traffic accelerated sharply, supporting the company’s growth narrative. Read More.
• Positive Sentiment: Analyst support remains — Needham reaffirmed a Buy and $180 price target, and other outlets highlight meaningful upside from current levels, giving investors a bullish counterpoint to the selloff. Read More.
• Neutral Sentiment: AI rollout momentum: Shopify says it’s powering commerce integrations across major AI channels (ChatGPT, Copilot, Google), which is lifting AI-driven traffic and orders — a strategic tailwind but one whose monetization timeline is still uncertain. Read More.
• Neutral Sentiment: Q2 revenue guidance was roughly in line with consensus ($3.4B–$3.5B reported in company guidance summaries), so revenue expectations aren’t the main issue — investors are focused on margin and profit cadence. Read More.
• Negative Sentiment: Profitability and outlook disappointed — Shopify missed operating profit expectations, reported a sizeable loss on some metrics, and issued a “softened” near-term outlook that disappointed traders and prompted the selloff. Read More.
• Negative Sentiment: Market reaction and investor concern: multiple outlets and analysts explain that despite the beat, the lukewarm guidance, margin headwinds, and uncertainty over the pace of future sales drivers (including how quickly AI monetizes) drove heavy selling. Read More.

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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