Shopify (NASDAQ:SHOP) Announces Quarterly Earnings Results

Shopify (NASDAQ:SHOP) (TSE:SHOP) posted its quarterly earnings results on Tuesday. The software maker reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.16, FiscalAI reports. Shopify had a net margin of 15.01% and a return on equity of 13.99%. The firm had revenue of $3.74 billion during the quarter. During the same period last year, the firm posted $0.34 earnings per share. The company’s revenue for the quarter was up 31.6% on a year-over-year basis.

Shopify Price Performance

Shares of NASDAQ:SHOP traded down $7.77 on Thursday, hitting $145.26. The company’s stock had a trading volume of 5,271,196 shares, compared to its average volume of 10,272,740. The company has a market capitalization of $186.90 billion, a PE ratio of 88.57, a PEG ratio of 2.94 and a beta of 2.65. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35. The company has a 50-day simple moving average of $152.75 and a 200 day simple moving average of $130.11. Shopify has a 1 year low of $94.00 and a 1 year high of $180.88.

Wall Street Analyst Weigh In

A number of brokerages recently commented on SHOP. Wedbush reaffirmed an “outperform” rating and issued a $176.00 target price on shares of Shopify in a research report on Wednesday. The Goldman Sachs Group increased their price target on Shopify from $170.00 to $194.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Sanford C. Bernstein reissued an “outperform” rating and issued a $165.00 price objective (up from $160.00) on shares of Shopify in a research note on Wednesday. BTIG Research initiated coverage on Shopify in a report on Friday, July 10th. They issued a “buy” rating on the stock. Finally, Morgan Stanley lowered shares of Shopify from an “overweight” rating to a “buy” rating in a research note on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $178.82.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Argus reaffirmed its Buy rating with a $180 price target, while RBC reiterated Outperform and a $200 target, signaling confidence in further upside. RBC rating article
• Positive Sentiment: Q3 revenue grew 31.6% to about $3.7 billion, and earnings per share beat estimates. Gross merchandise volume rose 30% to roughly $119 billion; free-cash-flow margin reached 22%, while operating income increased 66%. AI-driven commerce and higher payments penetration were also cited as growth drivers. Q3 takeaways
• Neutral Sentiment: UBS raised its price target to $160 but kept a Neutral rating, reflecting a more measured view of the shares. UBS rating
• Negative Sentiment: The key headwind is that GMV of about $119 billion came in slightly below expectations, alongside reported misses in subscription revenue. The shortfalls disappointed investors despite solid year-over-year growth, and concerns about the demanding holiday-quarter outlook and Shopify’s premium valuation may be amplifying the reaction. Q3 miss analysis

Institutional Investors Weigh In On Shopify

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

Shopify Company Profile

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.