Shopify (NASDAQ:SHOP) Earns Outperform Rating from Royal Bank Of Canada

Shopify (NASDAQ:SHOP) (TSE:SHOP)‘s stock had its “outperform” rating restated by investment analysts at Royal Bank Of Canada in a research report issued to clients and investors on Wednesday,Benzinga reports. They currently have a $170.00 price objective on the software maker’s stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 52.14% from the stock’s current price.

Several other equities research analysts also recently issued reports on SHOP. BMO Capital Markets set a $160.00 price objective on Shopify in a report on Thursday, February 12th. DZ Bank upgraded Shopify from a “hold” rating to a “strong-buy” rating in a report on Monday, February 16th. TD Securities upgraded Shopify from a “hold” rating to a “buy” rating and set a $159.00 price objective on the stock in a report on Thursday, February 12th. Cantor Fitzgerald reiterated a “neutral” rating and issued a $126.00 price objective (down from $181.00) on shares of Shopify in a report on Thursday, February 12th. Finally, Arete Research set a $175.00 price objective on Shopify in a report on Monday, February 2nd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $158.42.

Shopify Stock Up 6.0%

NASDAQ:SHOP opened at $111.74 on Wednesday. Shopify has a 52 week low of $88.14 and a 52 week high of $182.19. The company has a market capitalization of $145.72 billion, a P/E ratio of 110.63, a P/E/G ratio of 3.75 and a beta of 2.64. The stock’s fifty day moving average is $121.76 and its two-hundred day moving average is $140.96.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last posted its earnings results on Tuesday, May 5th. The software maker reported $999.00 EPS for the quarter, beating analysts’ consensus estimates of $0.22 by $998.78. Shopify had a return on equity of 12.07% and a net margin of 10.77%.The company had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. Sell-side analysts anticipate that Shopify will post 1.36 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Shopify

Large investors have recently bought and sold shares of the stock. Kingdom Financial Group LLC. purchased a new stake in Shopify during the 4th quarter worth about $26,000. Curio Wealth LLC purchased a new stake in Shopify during the 4th quarter worth about $27,000. Evolution Wealth Management Inc. increased its holdings in Shopify by 203.9% during the 1st quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker’s stock worth $27,000 after purchasing an additional 155 shares during the period. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in Shopify during the 4th quarter worth about $29,000. Finally, Lodestone Wealth Management LLC purchased a new stake in Shopify during the 4th quarter worth about $31,000. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 beat and GMV milestone — Shopify reported revenue growth (≈34%) and merchants generated over $100B in GMV, beating estimates and showing broad-based growth driven by B2B, offline scale and AI-powered tools. This is the fundamental driver supporting the rally. E-Commerce Update
• Positive Sentiment: Cathie Wood buying — ARK’s Cathie Wood purchased roughly $32M of Shopify after the earnings print, which can attract momentum and retail interest. Cathie Wood buys $32M
• Positive Sentiment: Unusual call options flow — Large block buying of call options (hundreds of thousands contracts reported) signals speculative bullish positioning and likely helped lift the stock intraday. Unusual options activity
• Neutral Sentiment: Mixed analyst actions — Citigroup issued a new $156 target (still a buy), reflecting differing views on near-term execution vs. long-term growth. Analysts remain split on valuation vs. growth durability. Citigroup new $156 PT
• Negative Sentiment: Multiple price-target cuts — Several firms lowered targets (Canaccord, BMO, Wells Fargo, DA Davidson, Citizens/JMP), citing valuation and near-term margin/AI-cost uncertainty; that pressured sentiment and triggered profit-taking for some holders. Canaccord PT lowered BMO PT lowered Wells Fargo PT lowered
• Negative Sentiment: Post-earnings volatility and cost concerns — Despite beats, some coverage flagged higher AI-related expenses and execution risks; the stock experienced a sharp post-earnings drop in earlier trading, contributing to today’s volatile bounce. AI reshapes merchant tools

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.