Shopify (NASDAQ:SHOP) Shares Gap Up on Analyst Upgrade

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) shares gapped up prior to trading on Wednesday after TD Cowen upgraded the stock to a buy rating. The stock had previously closed at $127.24, but opened at $138.90. Shopify shares last traded at $115.90, with a volume of 12,952,965 shares traded.

A number of other equities analysts have also issued reports on the stock. Wedbush reaffirmed an “outperform” rating and set a $185.00 target price (up previously from $160.00) on shares of Shopify in a research report on Tuesday, November 4th. Barclays set a $140.00 target price on Shopify and gave the company an “equal weight” rating in a research note on Wednesday, November 5th. ATB Capital raised shares of Shopify from a “sector perform” rating to an “outperform” rating in a report on Tuesday. BMO Capital Markets cut their price target on shares of Shopify from $190.00 to $150.00 and set an “outperform” rating for the company in a research note on Monday. Finally, Stifel Nicolaus set a $175.00 price objective on Shopify in a report on Tuesday, November 4th. Twenty-eight equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company’s stock. According to MarketBeat, Shopify presently has an average rating of “Moderate Buy” and an average price target of $168.86.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Revenue, GMV and growth momentum — Shopify reported ~31% YoY revenue and GMV growth, beating consensus and showing broad strength across regions and channels, supporting the growth story. Shopify Still Looks Like A Great Business, Just Not A Great Price
• Positive Sentiment: $2 billion buyback and strong free cash flow — Management authorized a $2B repurchase plan and reported robust free cash flow, which supports capital returns and can prop up the stock on pullbacks. Shopify’s Standout 2025: The Launchpad for a New Era of Commerce in 2026
• Positive Sentiment: Management guided Q1 revenue above Street estimates, signaling continued demand and validating the AI- and checkout-driven momentum that management is highlighting. Shopify forecasts quarterly revenue above estimates on strong demand
• Neutral Sentiment: AI tailwind narrative — Several outlets and analysts emphasize Shopify’s AI integrations as a durable advantage that helped sustain ~30% growth; this is a positive thematic driver but one that depends on execution. Shopify Defies Logic: AI Disruption Is a Good Thing
• Neutral Sentiment: Analyst moves mixed — Some upgrades and bullish price targets (and some resets) are circulating; consensus remains constructive but estimates and targets are being repriced. Benzinga: Analyst coverage and target changes
• Negative Sentiment: EPS miss and margin concerns — Shopify’s reported EPS slightly missed consensus and commentary noted structural gross-margin mix shifts (merchant solutions mix) that keep pressure on headline margins. Shopify (SHOP) Misses Q4 Earnings Estimates
• Negative Sentiment: Investor reaction and heavy selling — Despite revenue beats and buyback news, the stock slid sharply as investors focused on valuation (high PE), near-term EPS softness, and potential institutional selling. Shopify shares slide despite Q4 revenue and EPS beat
• Negative Sentiment: Bearish forecasters remain — At least one note flagged a pessimistic long-term outlook/pricing pressure risk, adding to near-term downside sentiment. BMO Capital Markets Issues Pessimistic Forecast for Shopify (NASDAQ:SHOP) Stock Price

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Twin Peaks Wealth Advisors LLC boosted its holdings in Shopify by 1.7% during the third quarter. Twin Peaks Wealth Advisors LLC now owns 3,448 shares of the software maker’s stock valued at $512,000 after acquiring an additional 59 shares during the period. Accurate Wealth Management LLC lifted its position in shares of Shopify by 2.0% during the 3rd quarter. Accurate Wealth Management LLC now owns 3,438 shares of the software maker’s stock worth $526,000 after purchasing an additional 67 shares during the last quarter. Moloney Securities Asset Management LLC boosted its stake in Shopify by 1.8% during the 3rd quarter. Moloney Securities Asset Management LLC now owns 3,951 shares of the software maker’s stock valued at $587,000 after purchasing an additional 70 shares during the period. Rothschild Investment LLC grew its holdings in Shopify by 47.5% in the 2nd quarter. Rothschild Investment LLC now owns 233 shares of the software maker’s stock valued at $27,000 after buying an additional 75 shares during the last quarter. Finally, Sivia Capital Partners LLC increased its position in Shopify by 0.9% in the 3rd quarter. Sivia Capital Partners LLC now owns 8,265 shares of the software maker’s stock worth $1,228,000 after buying an additional 75 shares during the period. 69.27% of the stock is currently owned by institutional investors and hedge funds.

Shopify Price Performance

The company has a market capitalization of $154.41 billion, a price-to-earnings ratio of 87.86, a price-to-earnings-growth ratio of 3.75 and a beta of 2.83. The business has a fifty day moving average price of $152.31 and a 200 day moving average price of $151.02.

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.