Stock Price & Analysis

Based on strong earnings growth and positive analyst sentiment, Shopify stock is a buy. Recent price momentum and expanding market share further support this position.

Price Prediction for SHOP Stock in 2025

Shopify (SHOP) is expected to reach a price target of $125 in 2025, driven by strong Q4 earnings with 31% revenue growth and a 26% increase in GMV, along with positive analyst sentiment and price target upgrades from firms like Oppenheimer and RBC Capital.

The stock's resilience amid market challenges, such as the Canadian retail downturn and boycott concerns, underscores its strong fundamentals and growth potential.

Analysts remain optimistic about Shopify's ability to capitalize on e-commerce expansion and international growth, supporting the bullish outlook.

The S1 support level for SHOP Stock is $92.51 ,The R1 resistant level for SHOP Stock is $109.14.

As of the end of day on 2025-04-02, the price of SHOP Stock was $92.18.

The target price for SHOP Stock according to analyst rating is 131.94, with the highest price target at 175.00 and the lowest at 100.00. Analysts have a Moderate Buy rating on SHOP Stock overall.

The market cap of SHOP is $130.3B.

Analysis and Insights

Valuation Metrics:

Shopify's current valuation metrics suggest a premium pricing relative to its earnings and revenue. The stock has a trailing P/E ratio of 77, which is significantly higher than the industry average, indicating that investors are pricing in high growth expectations. Additionally, the EV/EBITDA ratio of 68.54 and P/S ratio of 18 further highlight the stock's elevated valuation compared to its peers.

Revenue Growth and Profitability:

Shopify has demonstrated strong revenue growth, with Q4 revenue increasing 31% year-over-year to $2.81 billion, beating consensus estimates. The company also reported a net income of $1.29 billion for Q4, showing improving profitability. However, the Q1 revenue guidance indicates a potential slowdown, which could raise concerns about future growth rates.

Analyst Sentiment:

Analysts have mixed opinions on Shopify. While some have raised their price targets, citing strong execution and market share gains, others maintain a cautious stance due to the high valuation. The average price target of $140 suggests upside potential, but the stock's premium valuation remains a concern.

Market Trends and Competition:

Shopify continues to benefit from the growth of e-commerce, with a 29% U.S. market share and expanding international presence. However, the stock's high P/S ratio of 18 reflects investor expectations for sustained growth, which may not materialize if competition intensifies or if the global economic environment deteriorates.

Conclusion:

While Shopify's strong revenue growth and improving profitability are positive factors, its high valuation metrics, such as the P/E ratio of 77 and EV/EBITDA of 68.54, suggest the stock may be overvalued. Investors should consider waiting for a potential pullback or clearer signs of sustained growth before entering the stock.

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.

Shopify (SHOP) is predicted to reach $200 by 2030, driven by its strong position in the growing e-commerce market and expansion into international markets. Analysts highlight its robust revenue growth and profitability, with targets like $150 already set, indicating confidence in its long-term potential. Shopify's dominance in the U.S. and global expansion, coupled with its comprehensive ecosystem, supports this bullish outlook.

SHOP has a total of 8300 employees.