Shopify (NASDAQ:SHOP) Stock Rating Upgraded by Arete Research

Shopify (NASDAQ:SHOP) (TSE:SHOP) was upgraded by analysts at Arete Research from a “neutral” rating to a “buy” rating in a research note issued on Monday, MarketBeat Ratings reports.

SHOP has been the topic of a number of other reports. Citigroup reiterated a “market outperform” rating on shares of Shopify in a research report on Thursday, December 4th. Raymond James Financial reiterated a “market perform” rating on shares of Shopify in a report on Monday, December 1st. KeyCorp lifted their price target on shares of Shopify from $175.00 to $200.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. Stifel Nicolaus set a $175.00 price objective on shares of Shopify in a research report on Tuesday, November 4th. Finally, TD Securities raised Shopify to a “hold” rating in a research note on Thursday, December 4th. Twenty-five equities research analysts have rated the stock with a Buy rating and nineteen have given a Hold rating to the company. Based on data from MarketBeat.com, Shopify has a consensus rating of “Moderate Buy” and a consensus target price of $171.70.

Shopify Stock Down 9.8%

NASDAQ:SHOP opened at $119.29 on Monday. Shopify has a 12-month low of $69.84 and a 12-month high of $182.19. The stock’s fifty day simple moving average is $157.15 and its 200-day simple moving average is $151.51. The firm has a market capitalization of $155.30 billion, a P/E ratio of 88.36, a P/E/G ratio of 3.89 and a beta of 2.83.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last released its earnings results on Tuesday, November 4th. The software maker reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03. The firm had revenue of $2.84 billion for the quarter, compared to analyst estimates of $2.75 billion. Shopify had a return on equity of 11.72% and a net margin of 16.65%. As a group, equities research analysts expect that Shopify will post 1.12 earnings per share for the current year.

Institutional Investors Weigh In On Shopify

Institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in shares of Shopify by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker’s stock valued at $8,158,643,000 after purchasing an additional 743,803 shares during the last quarter. Jennison Associates LLC grew its position in Shopify by 64.3% in the third quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock valued at $2,812,211,000 after purchasing an additional 7,403,821 shares in the last quarter. Norges Bank acquired a new stake in Shopify in the 2nd quarter valued at $1,794,952,000. Loomis Sayles & Co. L P lifted its position in Shopify by 1.3% during the 2nd quarter. Loomis Sayles & Co. L P now owns 14,622,787 shares of the software maker’s stock worth $1,686,738,000 after buying an additional 191,824 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Shopify by 19.9% during the 2nd quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker’s stock worth $1,247,007,000 after buying an additional 1,781,530 shares during the last quarter. Institutional investors own 69.27% of the company’s stock.

More Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Analyst upgrades and bullish AI/agentic-commerce thesis — Arete Research upgraded SHOP from neutral to buy, and several bullish previews argue Shopify’s “agentic commerce” and AI strategy could re-accelerate revenue and expand the addressable market ahead of Q4 results. Upgrading Shopify On Agentic Commerce Inflection Point (Earnings Preview) Finviz (Arete upgrade)
• Positive Sentiment: Broker optimism on fundamentals and disciplined spending — Jefferies and other commentators expect Shopify to finish 2025 strongly, highlighting better margin visibility and controlled spending, which supports a constructive medium-term outlook. Shopify gears up for strong 2025 finish as analysts eye margins and AI strategy
• Neutral Sentiment: Bull case summaries and longer-term thesis circulate — Several write-ups (Compounding Your Wealth summary on InsiderMonkey) outline why long-term investors remain bullish on Shopify’s platform and AI opportunities, but these are forward-looking and depend on execution. Shopify Inc. (SHOP): A Bull Case Theory
• Neutral Sentiment: Technical/actionable trading notes — Some chart-focused commentary points to a bounce off recent trendlines after Shopify hit a multi-month low; this matters for short-term traders but doesn’t change fundamentals. Shopify Stock Could Extend a Bounce Off This Trendline
• Negative Sentiment: Recent steep decline and investor concern — Coverage notes a sharp drop from January highs and that Shopify is falling more than the broader market, increasing near-term downside risk and sparking momentum selling. Shopify (SHOP) Falls More Steeply Than Broader Market: What Investors Need to Know
• Negative Sentiment: Sell-side caution and valuation concerns — Some analysts and columnists argue the stock is overextended relative to near-term results (high trailing/forward P/E) and suggest trimming or selling around recent levels, highlighting the risk if AI-driven re-acceleration disappoints. Sell Shopify Stock At $130?

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.