Shopify (NASDAQ:SHOP) Trading Up 4% - Still a Buy?

Key Points

• Shopify shares rose 4% on Wednesday, trading as high as $105.12 after closing at $101.01, though volume was below average.
• Investor sentiment is being boosted by AI-related optimism, including Thrive Capital’s $100 million investment and commentary that Shopify’s earnings call signaled AI-fueled growth.
• Wall Street remains constructive on the stock, with multiple analysts upgrading SHOP and the current consensus rating at Moderate Buy with a $158.42 average price target.

Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP shares were up 4% on Wednesday . The company traded as high as $105.12 and last traded at $105.01. Approximately 8,076,842 shares were traded during trading, a decline of 30% from the average daily volume of 11,521,815 shares. The stock had previously closed at $101.01.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Thrive Capital’s rare $100 million investment has drawn fresh attention to Shopify’s AI efforts and may signal confidence in the company’s long-term valuation and commerce platform strategy. Thrive Capital’s AI Bet On Shopify (SHOP) Sparks Fresh Look At Valuation
• Positive Sentiment: Shopify’s earnings call was described as signaling AI-fueled growth, reinforcing the view that AI features could support merchant adoption, efficiency, and future revenue expansion. Shopify Earnings Call Signals AI-Fueled Growth
• Positive Sentiment: Analysts highlighted Shopify’s $67 billion payments volume, 67% payments penetration, and 59% growth in Shop Pay, suggesting more room to monetize merchants and expand Merchant Solutions revenue. Can Shopify's $67B Payments Volume Deepen Its Monetization Runway?
• Positive Sentiment: Baron Capital said Shopify is benefiting from the AI transition, adding to the bullish investor narrative around the company’s growth prospects. Here’s How Shopify (SHOP) is Thriving Through the AI Transition
• Neutral Sentiment: Loomis Sayles’ Global Growth Fund said it continues to hold Shopify, but the article mainly reflects portfolio commentary rather than a new company-specific development. Loomis Sayles Global Growth Fund Holds Firm on Shopify (SHOP) Beyond AI Narrative
• Neutral Sentiment: Freshworks’ customer awards included Shopify among honorees, but this appears to be a recognition item with limited direct stock impact. Freshworks Announces Winners of the 2026 Global Customer Awards
• Neutral Sentiment: Articles comparing Shopify with Amazon and discussing its long-term upside reinforce investor interest, but they do not add much new fundamental information. Shopify vs Amazon. One Just Beat Earnings by 60% at a Third of the Multiple.
• Neutral Sentiment: Another long-term bullish write-up suggests Shopify remains on investors’ radar as a potential decade-long compounder, but it is mostly sentiment-driven. Is Shopify Inc. (SHOP) Among Stocks That Will Make You Rich Over the Next Decade?

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on SHOP shares. TD Securities raised shares of Shopify from a "hold" rating to a "buy" rating and set a $159.00 price target for the company in a report on Thursday, February 12th. Moffett Nathanson raised shares of Shopify from a "neutral" rating to a "buy" rating and set a $150.00 price target for the company in a report on Monday, February 9th. Robert W. Baird set a $150.00 price target on shares of Shopify in a report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $175.00 price target on shares of Shopify in a report on Thursday, February 12th. Finally, DZ Bank raised shares of Shopify from a "hold" rating to a "strong-buy" rating in a report on Monday, February 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat, Shopify currently has a consensus rating of "Moderate Buy" and a consensus target price of $158.42.

Shopify Stock Performance

The company has a market capitalization of $136.27 billion, a price-to-earnings ratio of 103.97, a price-to-earnings-growth ratio of 2.87 and a beta of 2.64. The company's fifty day simple moving average is $117.88 and its two-hundred day simple moving average is $137.06.

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 for the quarter, topping the consensus estimate of $0.22 by $998.78. Shopify had a net margin of 10.77% and a return on equity of 12.07%. The company had revenue of $3.17 billion during the quarter, compared to analyst estimates of $3.08 billion. Sell-side analysts anticipate that Shopify Inc. will post 1.36 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SHOP. Kingdom Financial Group LLC. bought a new position in shares of Shopify in the 4th quarter worth about $26,000. Curio Wealth LLC bought a new position in shares of Shopify in the 4th quarter worth about $27,000. Evolution Wealth Management Inc. lifted its position 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 buying an additional 155 shares during the last quarter. Graney & King LLC bought a new position in shares of Shopify in the 1st quarter worth about $27,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of Shopify in the 4th quarter worth about $29,000. 69.27% of the stock is currently owned by institutional investors.

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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