Shopify (NASDAQ:SHOP) Upgraded to “Buy” at Arete Research

Arete Research upgraded shares of Shopify (NASDAQ:SHOP) (TSE:SHOP) from a neutral rating to a buy rating in a research note released on Monday, MarketBeat reports.

A number of other analysts also recently weighed in on the stock. BNP Paribas Exane assumed coverage on shares of Shopify in a report on Monday, November 24th. They issued a “neutral” rating on the stock. Oppenheimer reaffirmed an “outperform” rating on shares of Shopify in a research note on Monday, December 1st. Wells Fargo & Company reiterated an “overweight” rating and issued a $198.00 target price (up previously from $125.00) on shares of Shopify in a report on Wednesday, December 17th. DZ Bank upgraded Shopify from a “strong sell” rating to a “hold” rating in a report on Thursday, November 6th. Finally, Truist Financial set a $155.00 price objective on shares of Shopify and gave the stock a “hold” rating in a research note on Tuesday, November 4th. Twenty-five research analysts have rated the stock with a Buy rating and nineteen have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $171.70.

Shopify Price Performance

Shares of SHOP opened at $132.20 on Monday. The stock has a market capitalization of $172.10 billion, a price-to-earnings ratio of 97.93, a price-to-earnings-growth ratio of 3.87 and a beta of 2.83. Shopify has a 1 year low of $69.84 and a 1 year high of $182.19. The business’s 50 day simple moving average is $157.91 and its 200-day simple moving average is $151.57.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings results on Tuesday, November 4th. The software maker reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.03. The company had revenue of $2.84 billion for the quarter, compared to analysts’ expectations of $2.75 billion. Shopify had a net margin of 16.65% and a return on equity of 11.72%. On average, sell-side analysts expect that Shopify will post 1.12 earnings per share for the current year.

Institutional Investors Weigh In On Shopify

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of Shopify during the second quarter worth approximately $1,794,952,000. Jennison Associates LLC grew its position in shares of Shopify by 64.3% during the 3rd quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock worth $2,812,211,000 after buying an additional 7,403,821 shares in the last quarter. Brown Advisory Inc. raised its holdings in shares of Shopify by 5,193.6% in the second quarter. Brown Advisory Inc. now owns 2,066,884 shares of the software maker’s stock valued at $238,419,000 after acquiring an additional 2,027,839 shares in the last quarter. Geode Capital Management LLC lifted its stake in Shopify by 19.9% in the second quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker’s stock worth $1,247,007,000 after acquiring an additional 1,781,530 shares during the period. Finally, Picton Mahoney Asset Management grew its holdings in Shopify by 246,359.0% during the 2nd quarter. Picton Mahoney Asset Management now owns 1,759,717 shares of the software maker’s stock worth $202,146,000 after acquiring an additional 1,759,003 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: Analysts at Seeking Alpha upgraded SHOP to a Buy ahead of Q4 2025, arguing Shopify’s AI and “agentic commerce” initiatives could re-accelerate revenue and expand addressable market; management’s Q4 guidance (25–29% sales growth, 20–25% gross profit growth) is positioned to be beatable, supporting upside expectations. Upgrading Shopify On Agentic Commerce Inflection Point (Earnings Preview)
• Positive Sentiment: Arete Research moved SHOP from Neutral to Buy, adding upward analyst momentum to the stock after the recent pullback; analyst upgrades can prompt short-term buying interest. Finviz
• Positive Sentiment: Technical analysts note Shopify bounced off a near six‑month trendline during the recent pullback, suggesting a potential extension of the bounce if that support holds — a constructive setup for traders looking for mean reversion. Shopify Stock Could Extend a Bounce Off This Trendline
• Positive Sentiment: Broader market strength and improved macro data (better manufacturing prints and strong Q4 earnings across sectors) provide a tailwind that can lift high‑beta, growth names like SHOP alongside the market rebound. Market Indexes Bounce Back to Start a New Trading Week
• Neutral Sentiment: The Information’s coverage of AI shopping competition outlines industry shifts (rival alliances vs. Amazon); this is a strategic backdrop that could benefit Shopify over time but does not create immediate earnings certainty. In AI Shopping Wars, Rivals Team Up to Take On Amazon
• Neutral Sentiment: Sector/style pieces and comparative analyses (e.g., AmericanBankingNews) are weighing SHOP relative to peers; useful for context but unlikely to move price materially on their own. Analyzing MiX Telematics (NYSE:MIXT) and Shopify (NASDAQ:SHOP)
• Neutral Sentiment: Public comments from co‑founder Tobi Lütke (human interest/leadership tone) are notable for governance/culture context but are unlikely to change near‑term fundamentals. ‘Companies Cocoon Them,’ Shopify Co-Founder Tobi Lütke Says—Why Ex-Entrepreneurs Get Pushed To The ‘Outskirts’ Instead Of Promoted
• Negative Sentiment: A bearish Forbes piece argues for selling SHOP around $130 after a ~22% drop since early January, highlighting downside risk and short-term momentum concerns — a narrative that can amplify selling pressure and volatility. Sell Shopify Stock At $130?

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.