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

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s stock price gapped up before the market opened on Wednesday after TD Securities upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $127.24, but opened at $138.90. TD Securities now has a $159.00 price target on the stock. Shopify shares last traded at $115.90, with a volume of 12,952,965 shares changing hands.

A number of other research firms have also recently issued reports on SHOP. ATB Capital raised Shopify from a “sector perform” rating to an “outperform” rating in a research report on Tuesday. DA Davidson lifted their price target on Shopify from $185.00 to $195.00 and gave the company a “buy” rating in a report on Wednesday, November 5th. Citizens Jmp lowered their price target on Shopify from $200.00 to $160.00 and set a “market outperform” rating for the company in a research note on Thursday. Barclays set a $130.00 price objective on Shopify and gave the stock an “equal weight” rating in a report on Thursday. Finally, KeyCorp reiterated an “overweight” rating and issued a $160.00 target price on shares of Shopify in a research note on Wednesday. Thirty-one equities research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company’s stock. Based on data from MarketBeat, Shopify currently has an average rating of “Moderate Buy” and a consensus target price of $162.58.

Key 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

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Shopify by 1.5% during 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 acquiring an additional 743,803 shares during the period. Jennison Associates LLC lifted 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 purchasing an additional 7,403,821 shares during the last quarter. Norges Bank bought a new stake in Shopify during the 4th quarter valued at approximately $2,611,797,000. Loomis Sayles & Co. L P grew its holdings in Shopify by 1.3% in the 2nd quarter. Loomis Sayles & Co. L P now owns 14,622,787 shares of the software maker’s stock valued at $1,686,738,000 after buying an additional 191,824 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in shares of Shopify by 6.2% in the fourth quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock worth $2,043,365,000 after acquiring an additional 737,892 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors and hedge funds.

Shopify Trading Down 6.8%

The company has a market cap of $144.06 billion, a P/E ratio of 118.99, a P/E/G ratio of 3.50 and a beta of 2.83. The firm’s fifty day moving average price is $151.28 and its 200-day moving average price is $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.