Shopify (NASDAQ:SHOP) Shares Up 7.5% – Still a Buy?

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) shares rose 7.5% during mid-day trading on Monday . The stock traded as high as $123.00 and last traded at $122.28. 1,206,688 shares traded hands during trading, a decline of 88% from the average session volume of 10,491,660 shares. The stock had previously closed at $113.75.

Trending Headlines about Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Anticipation of strong Q2 growth: Investors are reportedly expecting revenue growth in the high-twenties percentage range, helping drive buying ahead of earnings. The company’s subscription revenue recently grew 21%, supported by Shopify Plus adoption, enterprise customers and new AI tools. Shopify Jumps on Q2 Revenue Growth Hopes
• Positive Sentiment: Confidence in Shopify’s competitive position: RBC argued that Shopify has strong defenses against AI-driven software disruption, while other commentary characterized the company as an early leader in agentic commerce. These views reinforce the potential for AI to expand Shopify’s merchant tools rather than weaken its business model. RBC on Shopify’s AI Defensibility
• Positive Sentiment: Expanded merchant distribution: DoorDash’s native Shopify integration lets eligible U.S. brick-and-mortar merchants synchronize catalogs and inventory and begin selling through DoorDash more easily. The partnership could increase Shopify’s ecosystem value and merchant engagement, although the near-term financial effect is uncertain. DoorDash Shopify Integration
• Neutral Sentiment: Partner ecosystem development: Indian e-commerce agency Marmeto became a Shopify Platinum Partner, signaling continued expansion of Shopify’s implementation and services network but likely having limited direct impact on near-term results. Marmeto Becomes Shopify Platinum Partner
• Negative Sentiment: Governance and reputational concerns: CEO Tobi Lütke faced criticism over apparent support for giving wealthy individuals greater voting power, including claims that the ultra-rich should receive multiple votes. The controversy could create reputational risk, though it has not yet altered Shopify’s operating outlook. Shopify CEO Voting Rights Criticism

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. Citigroup decreased their price objective on Shopify from $156.00 to $150.00 and set a “buy” rating on the stock in a report on Friday, July 24th. Citizens Jmp decreased their price target on shares of Shopify from $160.00 to $150.00 and set a “market outperform” rating on the stock in a research note on Wednesday, May 6th. Susquehanna began coverage on shares of Shopify in a report on Friday, July 10th. They issued a “neutral” rating on the stock. Zacks Research upgraded shares of Shopify from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $180.00 price objective on shares of Shopify in a report on Tuesday, May 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $157.69.

Shopify Trading Up 2.7%

The firm has a market capitalization of $169.06 billion, a price-to-earnings ratio of 128.99, a P/E/G ratio of 2.74 and a beta of 2.58. The firm has a fifty day moving average price of $115.46 and a 200 day moving average price of $121.27.

Hedge Funds Weigh In On Shopify

Institutional investors and hedge funds have recently bought and sold shares of the business. Kingdom Financial Group LLC. acquired a new stake in shares of Shopify in the fourth quarter valued at $26,000. Curio Wealth LLC bought a new position in shares of Shopify in the fourth quarter valued at about $27,000. Evolution Wealth Management Inc. lifted its position in Shopify by 203.9% during 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 in the last quarter. Graney & King LLC acquired a new position in Shopify during the 1st quarter worth about $27,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in Shopify during the 4th quarter worth about $29,000. 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.