BMO Capital Markets Issues Pessimistic Forecast for Shopify (NASDAQ:SHOP) Stock Price

Shopify (NASDAQ:SHOP) (TSE:SHOP) had its target price cut by research analysts at BMO Capital Markets from $190.00 to $150.00 in a report issued on Monday, Marketbeat reports. The firm currently has an “outperform” rating on the software maker’s stock. BMO Capital Markets’ price target would indicate a potential upside of 17.89% from the stock’s previous close.

Several other brokerages have also recently issued reports on SHOP. DA Davidson increased their target price on shares of Shopify from $185.00 to $195.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. DZ Bank upgraded shares of Shopify from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 6th. Zacks Research lowered shares of Shopify from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 12th. UBS Group set a $195.00 target price on Shopify in a report on Wednesday, December 3rd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Shopify in a research report on Monday, December 29th. Twenty-seven equities research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $170.21.

Shopify Trading Up 7.5%

SHOP opened at $127.24 on Monday. The company has a market capitalization of $165.65 billion, a price-to-earnings ratio of 94.25, a PEG ratio of 3.49 and a beta of 2.83. Shopify has a 12-month low of $69.84 and a 12-month high of $182.19. The business’s fifty day simple moving average is $153.14 and its 200-day simple moving average is $151.25.

Institutional Investors Weigh In On Shopify

A number of large investors have recently modified their holdings of the business. Knights of Columbus Asset Advisors LLC acquired a new stake in shares of Shopify during the third quarter worth $4,110,000. Principal Financial Group Inc. raised its stake in Shopify by 16.3% in the 3rd quarter. Principal Financial Group Inc. now owns 450,895 shares of the software maker’s stock worth $67,006,000 after acquiring an additional 63,300 shares during the last quarter. Triton Financial Group Inc acquired a new stake in Shopify during the 3rd quarter worth about $1,931,000. Sumitomo Mitsui Trust Group Inc. grew its stake in Shopify by 4.4% during the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,231,257 shares of the software maker’s stock valued at $603,425,000 after purchasing an additional 218,829 shares during the last quarter. Finally, IQ EQ FUND MANAGEMENT IRELAND Ltd increased its holdings in shares of Shopify by 65.5% in the third quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 158,514 shares of the software maker’s stock valued at $23,557,000 after purchasing an additional 62,743 shares during the period. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Large drop in short interest — Short interest fell ~27% in January to about 8.6M shares (short-interest ratio ~0.8 days), reducing immediate short‑selling pressure and removing a potential headwind for the stock.
• Positive Sentiment: Analysts and commentators turning upbeat on AI benefits — A MoffettNathanson analyst and other coverage argue AI is more likely to help Shopify’s merchant platform than hurt it, supporting bullish positioning ahead of earnings. Shopify’s stock soars ahead of earnings. Why this analyst is newly upbeat.
• Positive Sentiment: Product wins and AI personalization stories — Coverage highlights new merchant wins (e.g., Swanson Health subscriptions) and Shopify’s AI personalization tools, which support revenue/GMV momentum and monetization of merchant solutions. Shopify Powers Swanson Health Subscriptions And AI Personalization For Investors
• Positive Sentiment: Earnings-season optimism / revenue preview — Several previews expect holiday-quarter revenue to be stronger and spotlight AI-driven merchant solutions and international growth as catalysts into the print. Shopify Revenue Seen Higher in Key Holiday 4Q — Earnings Preview
• Positive Sentiment: Upgrade/positive sentiment pieces lifting momentum — Recent upgrades and bullish write-ups have amplified buying interest and momentum into the earnings release. Shopify (SHOP) Stock Soars 8.7% After Upgrade and Positive Sentiment
• Neutral Sentiment: Price-target trims from brokers — Benchmark and BMO cut their price targets (Benchmark: $195→$145; BMO: $190→$150) but kept buy/outperform stances, which narrows visible upside while still signaling conviction in the business. Benchmark price-target note (Benzinga) BMO price-target note (BayStreet)
• Negative Sentiment: Bear-market commentary — Some pieces argue Shopify remains stuck in a broader downtrend and will need strong earnings execution and sustained monetization to confirm a durable turnaround. Shopify stock is stuck in a bear market: will it rebound after earnings?

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.