Shopify Inc. (NASDAQ:SHOP) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) has been assigned a consensus recommendation of “Moderate Buy” from the forty-five brokerages that are presently covering the stock, MarketBeat reports. Nine analysts have rated the stock with a hold recommendation, thirty-three have issued a buy recommendation and three have issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $161.0278.

SHOP has been the subject of a number of research analyst reports. Bank of America assumed coverage on shares of Shopify in a research report on Tuesday, July 7th. They set a “buy” rating and a $150.00 price objective for the company. Susquehanna initiated coverage on Shopify in a research note on Friday, July 10th. They set a “neutral” rating on the stock. Weiss Ratings restated a “hold (c-)” rating on shares of Shopify in a research note on Monday. Citizens Jmp cut their price target on Shopify from $160.00 to $150.00 and set a “market outperform” rating for the company in a report on Wednesday, May 6th. Finally, Stifel Nicolaus set a $150.00 price objective on Shopify and gave the stock a “buy” rating in a research report on Thursday, July 9th.

Shopify Stock Performance

NASDAQ SHOP opened at $144.24 on Thursday. Shopify has a twelve month low of $94.00 and a twelve month high of $182.19. The stock has a market capitalization of $187.17 billion, a PE ratio of 142.81, a P/E/G ratio of 2.66 and a beta of 2.58. The stock has a 50-day simple moving average of $117.98 and a 200 day simple moving average of $119.65.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.02. Shopify had a net margin of 10.77% and a return on equity of 12.07%. The business had revenue of $3.58 billion for the quarter. During the same quarter in the previous year, the business posted $0.69 EPS. The company’s revenue was up 33.7% on a year-over-year basis. As a group, equities research analysts forecast that Shopify will post 1.4 EPS for the current fiscal year.

Institutional Investors Weigh In On Shopify

Several institutional investors and hedge funds have recently bought and sold shares of the business. TBH Global Asset Management LLC boosted its holdings in shares of Shopify by 1.2% in the 4th quarter. TBH Global Asset Management LLC now owns 6,438 shares of the software maker’s stock worth $1,036,000 after buying an additional 75 shares during the last quarter. Smartleaf Asset Management LLC raised its stake in Shopify by 13.9% in the 2nd quarter. Smartleaf Asset Management LLC now owns 631 shares of the software maker’s stock valued at $72,000 after acquiring an additional 77 shares during the period. WealthCollab LLC lifted its stake in shares of Shopify by 26.7% during the 4th quarter. WealthCollab LLC now owns 380 shares of the software maker’s stock valued at $61,000 after buying an additional 80 shares in the last quarter. Parr Mcknight Wealth Management Group LLC lifted its position in shares of Shopify by 3.1% during the first quarter. Parr Mcknight Wealth Management Group LLC now owns 2,762 shares of the software maker’s stock worth $328,000 after acquiring an additional 84 shares in the last quarter. Finally, Founders Financial Alliance LLC lifted its holdings in Shopify by 5.2% during the 4th quarter. Founders Financial Alliance LLC now owns 1,768 shares of the software maker’s stock worth $285,000 after purchasing an additional 87 shares in the last quarter. Institutional investors own 69.27% of the company’s stock.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported second-quarter revenue of $3.58 billion, up 33.7% year over year, and adjusted EPS of $0.42, exceeding the roughly $0.40 consensus estimate. Profitability and operating income also beat expectations. Shopify Profit Jumps as Subscriptions, Merchant Services Boost Revenues
• Positive Sentiment: The company forecast third-quarter revenue of approximately $3.7 billion to $3.8 billion, implying low-30% growth and topping the $3.6 billion analyst estimate. The outlook was a major catalyst for the stock’s move higher. Shopify expects Q3 revenue growth in the low 30s as it expands agentic commerce infrastructure
• Positive Sentiment: Growth was broad-based: gross merchandise volume, revenue, gross profit and free cash flow each grew more than 30%, while free-cash-flow margin reached 18%. Subscription solutions and merchant services both contributed to the performance. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit and Free Cash Flow
• Positive Sentiment: AI appears to be complementing rather than replacing Shopify’s platform. AI-referred traffic and orders reportedly tripled year over year, with tools such as ChatGPT and Gemini directing more shoppers to merchants. Shopify is expanding “agentic commerce” infrastructure to capture this trend. Shopify executive discusses AI and entrepreneurship
• Neutral Sentiment: Shopify’s valuation remains demanding after the rally, with a reported price-to-earnings ratio above 140, leaving the stock sensitive to any slowdown in growth or disappointment in future guidance.
• Negative Sentiment: CEO and governance-related comments, including support for a voting plan that could give wealthy taxpayers additional voting power, may create reputational or governance concerns, although they were not the primary driver of the trading session. Shopify CEO backs voting plan

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.