Shopify (NASDAQ:SHOP) Stock Price Down 7.5% on Analyst Downgrade

Shares of Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) dropped 7.5% during trading on Thursday after Truist Financial lowered their price target on the stock from $155.00 to $110.00. Truist Financial currently has a hold rating on the stock. Shopify traded as low as $108.56 and last traded at $109.84. Approximately 8,307,861 shares were traded during trading, a decline of 31% from the average daily volume of 12,111,297 shares. The stock had previously closed at $118.71.

Several other research analysts also recently commented on the company. Barclays set a $140.00 price target on Shopify and gave the stock an “equal weight” rating in a research report on Wednesday, November 5th. ATB Capital upgraded shares of Shopify from a “sector perform” rating to an “outperform” rating in a research note on Tuesday. Morgan Stanley reissued an “overweight” rating and issued a $192.00 price target (up from $165.00) on shares of Shopify in a report on Wednesday, November 5th. Arete Research set a $175.00 price objective on shares of Shopify in a report on Monday, February 2nd. Finally, Wedbush reiterated an “outperform” rating and issued a $185.00 target price (up previously from $160.00) on shares of Shopify in a research note on Tuesday, November 4th. Twenty-eight research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $166.67.

More Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q4 revenue and growth beat expectations — revenue rose ~31% to $3.67B, GMV and merchant solutions strength, and management guided Q1 revenue above consensus, supporting the growth narrative. Shopify Defies Logic: AI Disruption Is a Good Thing
• Positive Sentiment: Board authorized a $2 billion share repurchase and Shopify reported strong free cash flow (~$2B FY2025), which should support buybacks and return of capital over time. Shopify’s Standout 2025
• Positive Sentiment: Analyst bullishness: Needham reaffirmed its buy rating with a $180 price target, signaling some analyst confidence in upside if execution continues. Benzinga
• Neutral Sentiment: Mixed analyst moves: Atb Cormark upgraded SHOP to a “moderate buy” (supportive), while Benchmark cut its price target from $195 to $145 (less so). These offsets leave consensus views mixed near-term. Zacks.com Benzinga
• Negative Sentiment: EPS missed consensus (reported ~$0.48 vs. ~$0.50 expected), and margin pressure from a shift toward merchant solutions and increased investment spending raised concerns. Shopify (SHOP) Misses Q4 Earnings Estimates
• Negative Sentiment: Market reaction: shares fell sharply despite the revenue beat — investors appear focused on margins, valuation, and buyback execution mechanics. Shopify stock drops despite revenue beat, $2 billion buyback
• Negative Sentiment: Analysts and risk notes flagged execution/cash risk for the buyback (algorithms may accelerate volatility) and at least one firm issued a pessimistic outlook, adding pressure. Shopify’s $2 Billion Buyback Plan Raises Questions BMO Capital Markets Issues Pessimistic Forecast

Institutional Investors Weigh In On Shopify

Institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank bought a new stake in Shopify during the 4th quarter worth about $2,611,797,000. Jennison Associates LLC lifted its holdings in Shopify by 64.3% in the third quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock valued at $2,812,211,000 after buying an additional 7,403,821 shares during the period. Brown Advisory Inc. boosted its stake in Shopify by 5,193.6% in the second quarter. Brown Advisory Inc. now owns 2,066,884 shares of the software maker’s stock valued at $238,419,000 after acquiring an additional 2,027,839 shares during the last quarter. Geode Capital Management LLC boosted its stake in Shopify by 19.9% in the second quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker’s stock valued at $1,247,007,000 after acquiring an additional 1,781,530 shares during the last quarter. Finally, Picton Mahoney Asset Management grew its holdings in Shopify by 246,359.0% during the 2nd quarter. Picton Mahoney Asset Management now owns 1,759,717 shares of the software maker’s stock worth $202,146,000 after acquiring an additional 1,759,003 shares during the period. Institutional investors own 69.27% of the company’s stock.

Shopify Stock Performance

The firm’s 50-day simple moving average is $152.31 and its 200 day simple moving average is $151.02. The company has a market cap of $142.99 billion, a P/E ratio of 81.36, a PEG ratio of 3.75 and a beta of 2.83.

About Shopify

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.