Shopify's Strong Q2 Performance: Shopify reported a 31% revenue increase in Q2, reaching $2.68 billion, driven by global expansion and AI innovations, despite a slight dip in gross margins. The company maintains strong free cash flow margins at 16%, indicating solid profitability.
Market Outlook and Valuation Concerns: While Shopify's stock is trading at high multiples, analysts remain bullish with a Moderate Buy consensus, highlighting the company's growth potential through AI-driven commerce and expanding global presence, despite risks of overvaluation.
SHOP
$163.14+Infinity%1D
Analyst Views on SHOP
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 179.56 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.
26 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 179.56 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.
17 Buy
9 Hold
0 Sell
Moderate Buy
Current: 159.850
Low
140.00
Averages
179.56
High
200.00
Current: 159.850
Low
140.00
Averages
179.56
High
200.00
BNP Paribas Exane
Neutral
initiated
2025-11-24
Reason
BNP Paribas Exane
Price Target
2025-11-24
initiated
Neutral
Reason
BNP Paribas Exane initiated coverage of Shopify with a Neutral rating.
JPMorgan
Overweight
maintain
$179 -> $180
2025-11-05
Reason
JPMorgan
Price Target
$179 -> $180
2025-11-05
maintain
Overweight
Reason
JPMorgan raised the firm's price target on Shopify to $180 from $179 and keeps an Overweight rating on the shares. The firm cites positive estimate revisions post the earnings report for the target bump. Shopify's volume growth accelerated sequentially in Q3, but a spike in transaction losses weighed on the Q4 free cash flow margin outlook, the analyst tells investors in a research note. JPMorgan points out that Shopify has not seen a material change in intra-quarter spend trends while the increase in losses "sounds treatable."
BMO Capital
Outperform
maintain
$180 -> $190
2025-11-05
Reason
BMO Capital
Price Target
$180 -> $190
2025-11-05
maintain
Outperform
Reason
BMO Capital raised the firm's price target on Shopify to $190 from $180 and keeps an Outperform rating on the shares. The company reported "solid" Q3 results, its Q4 guidance beat on revenue, and its gross merchandise volume growth was the strongest since 2021, the analyst tells investors in a research note. The stock remains attractive given the durability of Shopify's growth and the strength of its market position, the firm added.
DA Davidson
Gil Luria
Buy
maintain
$185 -> $195
2025-11-05
Reason
DA Davidson
Gil Luria
Price Target
$185 -> $195
2025-11-05
maintain
Buy
Reason
DA Davidson analyst Gil Luria raised the firm's price target on Shopify to $195 from $185 and keeps a Buy rating on the shares. The company exceeded lofty expectations with recent agentic commerce announcements supporting the bull case that Shopify is in an advantageous position to monetize its growing customer base of global enterprises and D2C brands, the analyst tells investors in a research note.
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.
