Wells Fargo & Company Cuts Shopify (NASDAQ:SHOP) Price Target to $144.00

Key Points

• Wells Fargo cut its Shopify price target from $166 to $144 while keeping an "overweight" rating, a level Wells Fargo says still implies roughly a 32.7% upside from the stock's prior close.
• Analyst views are mixed — DA Davidson trimmed its target to $140 (still a Buy) while Scotiabank raised its target to $200; MarketBeat's consensus is a "Moderate Buy" with an average price target of $160.28.
• Shopify reported a strong Q1 with revenue above estimates and merchants processing over $100B in GMV and accelerating AI-driven orders, but a cautious Q2 outlook and margin pressure have driven a recent selloff and valuation concerns.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price objective decreased by Wells Fargo & Company from $166.00 to $144.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the software maker's stock. Wells Fargo & Company's price objective would indicate a potential upside of 32.67% from the stock's previous close.

Several other analysts have also issued reports on SHOP. DA Davidson reduced their price target on shares of Shopify from $195.00 to $140.00 and set a "buy" rating on the stock in a research report on Wednesday. Scotiabank upgraded shares of Shopify from a "sector perform" rating to an "outperform" rating and raised their target price for the company from $165.00 to $200.00 in a research report on Thursday, January 8th. Robert W. Baird set a $150.00 target price on shares of Shopify in a research report on Wednesday. UBS Group cut their target price on shares of Shopify from $165.00 to $145.00 and set a "neutral" rating on the stock in a research report on Thursday, February 12th. Finally, Benchmark cut their target price on shares of Shopify from $195.00 to $145.00 and set a "buy" rating on the stock in a research report on Tuesday, February 10th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Shopify has an average rating of "Moderate Buy" and an average price target of $160.28.

Shopify Stock Performance

Shares of NASDAQ SHOP traded up $0.91 during trading hours on Wednesday, hitting $108.54. 6,524,823 shares of the stock were exchanged, compared to its average volume of 10,843,534. The company has a market cap of $141.55 billion, a PE ratio of 116.71, a price-to-earnings-growth ratio of 4.53 and a beta of 2.64. The company's fifty day simple moving average is $122.10 and its two-hundred day simple moving average is $141.64. Shopify has a 1-year low of $88.14 and a 1-year 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. The business had revenue of $3.17 billion for the quarter, compared to analyst estimates of $3.08 billion. Shopify had a net margin of 10.65% and a return on equity of 11.52%. As a group, sell-side analysts expect that Shopify will post 1.36 EPS for the current fiscal year.

Hedge Funds Weigh In On Shopify

Large investors have recently modified their holdings of the business. Kingdom Financial Group LLC. bought a new position in shares of Shopify during the fourth quarter valued at $26,000. Curio Wealth LLC bought a new position in shares of Shopify during the fourth quarter valued at $27,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of Shopify during the fourth quarter valued at $29,000. Lloyd Advisory Services LLC. bought a new position in shares of Shopify during the fourth quarter valued at $31,000. Finally, Lodestone Wealth Management LLC bought a new position in shares of Shopify during the fourth quarter valued at $31,000. Institutional investors own 69.27% of the company's stock.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 beats and strong top‑line momentum: Shopify reported ~34% revenue growth, narrowed losses, and merchants processed over $100 billion in Q1 GMV — evidence of durable demand and platform traction. Shopify Delivers Again as Merchants Clear $100 Billion in Q1 GMV
• Positive Sentiment: AI adoption is accelerating orders: Company commentary and reporting show AI-driven traffic and orders growing materially (highlighting integrations with ChatGPT, Copilot and Google), supporting long‑term commerce expansion. AI Drove Orders on Shopify Up 13 Times in Q1
• Positive Sentiment: Buy‑side support persists albeit with differing targets: Needham reaffirmed a Buy and kept a $180 price target, signaling conviction in medium‑term upside despite the pullback. Needham & Company Reaffirmed Buy, $180 PT
• Neutral Sentiment: Street sees mixed valuation opportunities: Some analysts highlight meaningful upside from current levels (average PTs above the share price), but they also warn that valuation will take time to re‑rate given near‑term margin pressures. Analysts See 27% Upside After Selloff
• Negative Sentiment: Cautious Q2 outlook and operating profit shortfall drove the selloff: Despite beating Q1 estimates, Shopify’s commentary and guidance signaled slower revenue growth and margin pressure into Q2, prompting downward re‑rating. Shopify Stock Tumbles On Q2 Revenue, Operating Income Outlook
• Negative Sentiment: Analyst target cut reduces near‑term confidence: DA Davidson lowered its price target from $195 to $140 while staying at Buy — a sizable cut that signals moderation in upside expectations and may pressure sentiment. DA Davidson Lowers PT to $140
• Negative Sentiment: Market narrative centers on valuation vs. execution risk: Commentaries and coverage emphasize that strong AI/product momentum must translate into sustainable margin expansion; any continued soft guidance or profit misses could keep the stock under pressure. Shopify Shares Dive on Softened Outlook

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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