Shopify Inc. saw its stock price decline by 5.04% as it crossed below the 5-day SMA, reflecting broader market trends with the Nasdaq-100 down 1.19% and the S&P 500 down 0.69%.
Despite the stock's decline, Shopify reported a 32% year-over-year revenue increase in Q3 2025, showcasing strong performance in its e-commerce platform. The company generated free cash flow equivalent to 18% of its revenue, maintaining a solid balance sheet with approximately $6 billion in cash and no debt. However, management cautioned that revenue growth may decelerate to the mid-to-high 20% range in Q4, which could raise concerns about the stock's high valuation.
The implications of Shopify's strong revenue growth are significant, as it highlights the company's ability to adapt and innovate in a competitive market. The introduction of the Sidekick AI tool is expected to enhance merchant loyalty and increase transaction volumes, positioning Shopify favorably for future growth despite potential market challenges.
Wall Street analysts forecast SHOP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHOP is 180.62 USD with a low forecast of 140.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
31 Analyst Rating
Wall Street analysts forecast SHOP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHOP is 180.62 USD with a low forecast of 140.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Buy
13 Hold
0 Sell
Moderate Buy
Current: 137.500
Low
140.00
Averages
180.62
High
200.00
Current: 137.500
Low
140.00
Averages
180.62
High
200.00
Scotiabank
Sector Perform
to
Outperform
upgrade
$165 -> $200
2026-01-08
Reason
Scotiabank
Price Target
$165 -> $200
AI Analysis
2026-01-08
upgrade
Sector Perform
to
Outperform
Reason
Scotiabank upgraded Shopify to Outperform from Sector Perform with a price target of $200, up from $165, citing top-line strength and strong operating leverage that is "increasingly being helped by AI." 2026 could be the year AI shopping and GMV monetization starts to inflect meaningfully higher, which could benefit Shopify "for years to come," the analyst tells investors.
Wolfe Research
Shweta Khajuria
Outperform -> Peer Perform
downgrade
2026-01-05
Reason
Wolfe Research
Shweta Khajuria
Price Target
2026-01-05
downgrade
Outperform -> Peer Perform
Reason
Wolfe Research analyst Shweta Khajuria downgraded Shopify to Peer Perform from Outperform.
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Wolfe Research
Outperform -> Peer Perform
downgrade
$185
2026-01-05
Reason
Wolfe Research
Price Target
$185
2026-01-05
downgrade
Outperform -> Peer Perform
Reason
As previously reported, Wolfe Research downgraded Shopify to Peer Perform from Outperform and removed the firm's prior $185 price target, citing four reasons. Those include what the firm sees as elevated expectations that leave modest room for upside; what it sees as modest upside to margins; Agentic Commerce promise that it says seems priced in; and a valuation that "looks full" after a re-rating over the last two years.
Wells Fargo
Overweight
maintain
$125 -> $198
2025-12-17
Reason
Wells Fargo
Price Target
$125 -> $198
2025-12-17
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Shopify to $198 from $125 and keeps an Overweight rating on the shares. The firm sees Shopify as an under-earning asset positioned to be a primary beneficiary from changes in AI search and discovery. Wells forecasts Shopify to capture demand-generation economics in AI world, taking its revenue/adjusted OI estimates 20%-plus/50%-plus above street by 2028.
About SHOP
Shopify Inc. (Shopify) is a Canada-based global commerce company. The Company provides essential Internet infrastructure for commerce, offering tools to start, grow, market and manage a retail business of any size. It provides platforms and services that are engineered and delivers a shopping experience for consumers online, in store and everywhere in between. Its software enables merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Company's Shopify platform provides merchants with a single view of their business across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify's platform operates across 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
