Shopify (NASDAQ:SHOP) Trading Down 7.5% After Analyst Downgrade

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) shares were down 7.5% on Thursday after UBS Group lowered their price target on the stock from $165.00 to $145.00. UBS Group currently has a neutral rating on the stock. Shopify traded as low as $108.56 and last traded at $109.84. Approximately 8,307,861 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 12,111,297 shares. The stock had previously closed at $118.71.

SHOP has been the subject of several other reports. Wolfe Research upgraded Shopify from a “hold” rating to an “outperform” rating in a research note on Tuesday, January 6th. Wells Fargo & Company set a $191.00 price objective on Shopify and gave the company an “overweight” rating in a research note on Thursday. Oppenheimer restated an “outperform” rating on shares of Shopify in a report on Monday, December 1st. Moffett Nathanson upgraded Shopify from a “neutral” rating to a “buy” rating and set a $150.00 target price on the stock in a report on Monday. Finally, Scotiabank raised shares of Shopify from a “sector perform” rating to an “outperform” rating and lifted their price target for the company from $165.00 to $200.00 in a research report on Thursday, January 8th. Thirty-one equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $162.58.

More Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Company beat revenue expectations with Q4 revenue up ~31%, strong GMV and Merchant Solutions growth, guided Q1 revenue above Street estimates and authorized a $2 billion buyback — supportive for cash generation and long‑term outlook. Shopify press release
• Positive Sentiment: Analyst upgrade: TD Securities raised Shopify from Hold to Buy with a $159 target, adding upward analyst pressure after the print. TD Securities upgrade
• Positive Sentiment: Needham reaffirmed a Buy with a $180 target, highlighting continued bullish institutional views despite recent volatility. Needham note
• Neutral Sentiment: Analysts and commentary note Shopify’s AI investments are expanding product monetization and improving cash flow, but the company trades at a premium vs. peers — mixed implication for near‑term multiples. Zacks analysis
• Neutral Sentiment: Management’s guidance called for continued high‑single to low‑30% revenue growth in Q1 — above consensus and a positive signal for growth trajectory, but it comes with planned higher operating spend. Reuters: guidance
• Negative Sentiment: Q4 EPS missed estimates (reported ~$0.46–$0.48 vs. ~$0.50 consensus) — investors focused on the earnings miss and margin pressure despite the revenue beat, triggering a post‑earnings selloff. Zacks earnings report
• Negative Sentiment: Several firms trimmed price targets today (UBS to $145 neutral rating; Wedbush/Citizens lowered to ~$160; Truist cut to $110), signaling analyst uncertainty on valuation and near‑term catalysts. Benzinga: analyst moves
• Negative Sentiment: Commentary raises risks around the buyback execution, short‑term volatility and margin mix (Merchant Solutions growth compressing gross margins), which could keep the stock under pressure until clarity on margins and buyback cadence. TipRanks buyback risk

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Kingdom Financial Group LLC. purchased a new stake in Shopify in the fourth quarter worth $26,000. Financial Gravity Companies Inc. purchased a new position in shares of Shopify during the 2nd quarter valued at $27,000. Rothschild Investment LLC grew its stake in shares of Shopify by 47.5% during the 2nd quarter. Rothschild Investment LLC now owns 233 shares of the software maker’s stock worth $27,000 after acquiring an additional 75 shares during the period. Heartwood Wealth Advisors LLC purchased a new stake in Shopify in the 3rd quarter worth about $27,000. Finally, Curio Wealth LLC purchased a new stake in Shopify in the 4th quarter worth about $27,000. 69.27% of the stock is owned by institutional investors.

Shopify Stock Performance

The firm has a market capitalization of $144.06 billion, a P/E ratio of 118.99, a PEG ratio of 3.50 and a beta of 2.83. The stock has a 50 day moving average of $151.28 and a 200-day moving average of $150.74.

Shopify Company Profile

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.