Shopify (NASDAQ:SHOP) Trading Down 3.1% – Should You Sell?

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s share price traded down 3.1% during mid-day trading on Tuesday . The stock traded as low as $128.27 and last traded at $129.36. 6,910,602 shares were traded during trading, a decline of 47% from the average session volume of 13,013,301 shares. The stock had previously closed at $133.50.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Klaviyo integration expands Shopify’s localization and CRM capabilities, which should help large merchants run unified, region-specific catalogs and marketing without manual workarounds — a boost to merchant retention and expansion. Klaviyo, Shopify deepen product integration
• Positive Sentiment: Jefferies raised its price target on SHOP from $125 to $150 and kept a “hold” rating, implying roughly mid-teens upside from current levels — a near-term catalyst that can support sentiment and attract relative-value buyers. Benzinga
• Positive Sentiment: Broker coverage remains constructive: consensus across some brokerages is a “Moderate Buy,” which can underpin demand from institutional and retail investors monitoring analyst views. Brokerage consensus
• Neutral Sentiment: Several evergreen pieces are driving retail interest (Zacks/other outlets highlighting SHOP as a trending or long-term idea). These increase search/flow activity but are not immediate fundamental news. Zacks trending stock coverage
• Negative Sentiment: Technicals and valuation are headwinds: the stock is trading below its 50‑day and 200‑day moving averages, which can trigger short-term selling and algorithmic pressure.
• Negative Sentiment: High valuation metrics (P/E near 140, PEG ~4.7) leave SHOP exposed if growth misses expectations — investors may be trimming exposure on short-term uncertainty.
• Negative Sentiment: Trading volume is below average today, suggesting the down move may lack strong conviction but also that buyers aren’t stepping in aggressively to absorb selling.

Wall Street Analysts Forecast Growth

Several 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 objective on the stock in a research note on Thursday, February 12th. Zacks Research cut shares of Shopify from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 12th. Evercore set a $135.00 target price on Shopify in a report on Wednesday, February 11th. Needham & Company LLC reissued a “buy” rating and issued a $180.00 target price on shares of Shopify in a research note on Thursday, February 12th. Finally, Bank of America raised their price target on Shopify from $185.00 to $190.00 and gave the stock a “buy” rating in a research report on Wednesday, December 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $163.33.

Shopify Stock Performance

The stock has a market cap of $168.41 billion, a P/E ratio of 139.10, a PEG ratio of 4.67 and a beta of 2.83. The stock has a fifty day simple moving average of $136.61 and a 200-day simple moving average of $149.12.

Hedge Funds Weigh In On Shopify

A number of large investors have recently bought and sold shares of SHOP. Brighton Jones LLC grew its stake in shares of Shopify by 2.8% during the 4th quarter. Brighton Jones LLC now owns 21,176 shares of the software maker’s stock worth $2,252,000 after acquiring an additional 584 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Shopify by 107.3% in the first quarter. AQR Capital Management LLC now owns 14,576 shares of the software maker’s stock worth $1,392,000 after purchasing an additional 7,544 shares in the last quarter. Sivia Capital Partners LLC boosted its holdings in Shopify by 6.6% during the second quarter. Sivia Capital Partners LLC now owns 8,190 shares of the software maker’s stock worth $945,000 after purchasing an additional 506 shares during the last quarter. Modera Wealth Management LLC boosted its holdings in Shopify by 17.0% during the second quarter. Modera Wealth Management LLC now owns 2,678 shares of the software maker’s stock worth $309,000 after purchasing an additional 389 shares during the last quarter. Finally, KCM Investment Advisors LLC bought a new position in Shopify in the second quarter valued at $239,000. Institutional investors and hedge funds own 69.27% of the company’s stock.

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.