Should You Buy Shopify Inc (SHOP) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
138.920
1 Day change
1.03%
52 Week Range
182.190
Analysis Updated At
2026/01/26
Shopify Inc. (SHOP) is not a strong buy for a beginner, long-term investor at this moment. The stock is currently in a pre-market downtrend (-1.15%), with technical indicators signaling oversold conditions but no immediate upward momentum. While analysts have mixed ratings, the most recent upgrade from Scotiabank highlights potential long-term benefits from AI integration. However, financial performance shows declining net income and EPS, which raises concerns. Given the lack of proprietary trading signals and the absence of strong catalysts, holding the stock for now is recommended.
Technical Analysis
The MACD is negative and expanding (-3.482), indicating bearish momentum. RSI is at 13.927, suggesting the stock is oversold. Moving averages are converging, showing indecision in price direction. Key support is at $138.993, with resistance at $152.841. The stock is trading below its pivot point, signaling weakness.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
6
Buy
8
Positive Catalysts
Scotiabank's recent upgrade with a price target of $200 highlights potential long-term growth driven by AI adoption and GMV monetization. The company's strong Q3 revenue growth (+31.54% YoY) reinforces its market position.
Neutral/Negative Catalysts
Net income and EPS have significantly declined (-68.12% and -68.75% YoY, respectively). Gross margin dropped by 5.41%. Wolfe Research's downgrade and valuation concerns indicate limited short-term upside. Pre-market price is down 1.15%, and technical indicators suggest bearish momentum.
Financial Performance
In Q3 2025, revenue increased by 31.54% YoY to $2.84 billion, but net income dropped by 68.12% to $264 million. EPS fell by 68.75% to $0.20, and gross margin declined to 48.91%. While revenue growth is strong, profitability metrics are deteriorating.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Mixed ratings: Scotiabank upgraded to Outperform with a $200 target, citing AI-driven growth. Wolfe Research downgraded to Peer Perform, citing valuation concerns. Other analysts have raised price targets but remain cautious about margins and valuation.
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 USD and a high forecast of 200 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 USD and a high forecast of 200 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
Averages
180.62
High
200
Current: 137.500
Low
140
Averages
180.62
High
200
Scotiabank
Sector Perform
to
Outperform
upgrade
$165 -> $200
AI Analysis
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.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SHOP
