Shopify (NASDAQ:SHOP) Announces Quarterly Earnings Results

Shopify (NASDAQ:SHOP) (TSE:SHOP) posted its quarterly earnings data on Tuesday. The software maker reported $0.49 EPS for the quarter, beating the consensus estimate of $0.33 by $0.16, FiscalAI reports. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The business had revenue of $3.74 billion during the quarter. During the same period in the previous year, the business posted $0.34 EPS. The company’s revenue for the quarter was up 31.6% compared to the same quarter last year.

Shopify Trading Up 2.9%

Shares of SHOP traded up $4.16 during mid-day trading on Wednesday, reaching $146.73. The company had a trading volume of 1,555,720 shares, compared to its average volume of 10,243,750. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. Shopify has a fifty-two week low of $94.00 and a fifty-two week high of $180.88. The stock has a market cap of $188.79 billion, a price-to-earnings ratio of 99.14, a price-to-earnings-growth ratio of 3.23 and a beta of 2.65. The firm has a fifty day simple moving average of $152.77 and a 200-day simple moving average of $130.13.

Analysts Set New Price Targets

A number of research firms have recently commented on SHOP. Mizuho set a $180.00 target price on Shopify in a research report on Thursday, September 24th. Phillip Securities cut shares of Shopify from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 17th. Citigroup increased their target price on shares of Shopify from $196.00 to $216.00 and gave the stock a “buy” rating in a research note on Tuesday, October 27th. Wells Fargo & Company reissued an “overweight” rating and set a $205.00 price target on shares of Shopify in a report on Wednesday. Finally, Truist Financial set a $180.00 price target on Shopify and gave the stock a “buy” rating in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat, Shopify presently has an average rating of “Moderate Buy” and a consensus target price of $178.49.

Institutional Trading of Shopify

Several institutional investors and hedge funds have recently bought and sold shares of SHOP. The Manufacturers Life Insurance Company raised its stake in shares of Shopify by 8.5% during the first quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker’s stock worth $998,137,000 after buying an additional 660,198 shares during the last quarter. Swiss National Bank lifted its stake in Shopify by 27.0% in the first quarter. Swiss National Bank now owns 4,115,300 shares of the software maker’s stock valued at $487,580,000 after buying an additional 876,100 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Shopify by 4.1% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,678,602 shares of the software maker’s stock worth $436,356,000 after buying an additional 145,500 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in Shopify by 4.8% during the 1st quarter. Bank of New York Mellon Corp now owns 3,495,964 shares of the software maker’s stock worth $414,691,000 after acquiring an additional 159,873 shares during the last quarter. Finally, Amova Asset Management Americas Inc. increased its position in shares of Shopify by 5.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,458,265 shares of the software maker’s stock valued at $410,219,000 after buying an additional 165,080 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Underlying results showed continued growth: revenue rose 32% year over year to about $3.7 billion, operating income increased 66%, and free cash flow climbed 61% to $816 million. The company also reported momentum in AI-driven commerce and Shop Pay. Article: Shopify Stock Fell After Its Report
• Positive Sentiment: Some coverage characterized Shopify’s fourth-quarter outlook as upbeat, while analysts cited in reports retained a Moderate Buy consensus. Article: Shopify’s Small Q3 Miss Triggered a Big Sell-Off
• Neutral Sentiment: Rosenblatt Securities lowered its price target to $180 from $186 but maintained a Buy rating, signaling continued optimism alongside a more cautious valuation view. Rosenblatt Securities recommendations
• Negative Sentiment: The key drag was a slight miss in gross merchandise volume—about $119.1 billion versus roughly $120 billion expected—and weaker-than-expected subscription revenue. The misses disappointed investors after a strong run and overshadowed the earnings beat. Article: Shopify falls after Q3 results
• Negative Sentiment: Cantor Fitzgerald cut its target to $150 from $158 and shifted to a Neutral rating, reinforcing a more guarded near-term outlook. Ticker Report article

About Shopify

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants’ own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.