Shopify (NASDAQ:SHOP) Trading Up 2.8% – Still a Buy?

Shares of Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) rose 2.8% on Wednesday . The company traded as high as $123.77 and last traded at $120.24. Approximately 10,120,875 shares changed hands during trading, a decline of 25% from the average daily volume of 13,467,149 shares. The stock had previously closed at $116.93.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Large buyback and AI roadmap — Shopify announced a US$2 billion share buyback and introduced agentic storefronts plus the Universal Commerce Protocol, signaling aggressive capital return and a push to embed AI into merchants’ stacks, which can support revenue and margin expansion over time. Shopify Buyback And AI Push Test Valuation And Growth Expectations
• Positive Sentiment: GMV growth and AI integration — Portfolio commentary and independent coverage point to reaccelerating GMV coupled with deeper AI integration, reinforcing the case that product-led improvements are translating into merchant activity and payment/fulfillment revenue. Shopify (SHOP) GMV Growth Reaccelerates as AI Integration Strengthens Investment Case
• Neutral Sentiment: Industry AI tooling evolution — Third‑party AI imaging and product-fidelity advances (Rewarx Studio) highlight broader e‑commerce tooling improvements that benefit platforms like Shopify indirectly; helpful for merchant UX but not an immediate revenue catalyst. How Rewarx Studio AI is Solving the Fidelity Crisis in AI Product Photography: A Data-Driven Leap Across Global E-commerce Brands
• Neutral Sentiment: Investor interest and coverage — Multiple retail analyst/coverage pieces (Zacks, Seeking Alpha comparisons) are driving attention and search volume; these increase liquidity and volatility but offer mixed buy/sell signals. Is Trending Stock Shopify Inc. (SHOP) a Buy Now?
• Negative Sentiment: Analyst price-target cut and valuation pressure — Jefferies lowered its price target (from $160 to $125), citing softer software-sector multiples and valuation risk; with SHOP trading well above its 52‑week low and still a high P/E, this weighs on near-term sentiment. Shopify Inc’s (SHOP) Target Price Lowered Amid Lower Software Valuation Concerns
• Negative Sentiment: Profit-taking after recent run and technicals — The stock’s drop comes amid a recent run-up, lower intraday volume versus average, and price sitting below its 50- and 200-day moving averages, which can trigger momentum-driven selling. Why Shopify (SHOP) Stock Is Up Today

Analysts Set New Price Targets

SHOP has been the subject of a number of recent analyst reports. Wells Fargo & Company set a $191.00 price objective on Shopify and gave the stock an “overweight” rating in a research report on Thursday, February 12th. Citizens Jmp lowered their price objective on shares of Shopify from $200.00 to $160.00 and set a “market outperform” rating for the company in a research note on Thursday, February 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Shopify in a research report on Monday, December 29th. Oppenheimer reissued an “outperform” rating on shares of Shopify in a report on Monday, December 1st. Finally, Moffett Nathanson raised Shopify from a “neutral” rating to a “buy” rating and set a $150.00 target price for the company in a report on Monday, February 9th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $162.64.

Shopify Trading Down 4.1%

The business has a fifty day simple moving average of $141.56 and a two-hundred day simple moving average of $149.63. The company has a market cap of $157.17 billion, a PE ratio of 129.82, a price-to-earnings-growth ratio of 4.59 and a beta of 2.83.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SHOP. Kingdom Financial Group LLC. purchased a new position in Shopify during the fourth quarter worth about $26,000. Financial Gravity Companies Inc. purchased a new stake in shares of Shopify in the 2nd quarter valued at $27,000. Rothschild Investment LLC boosted its stake in shares of Shopify by 47.5% in the second quarter. Rothschild Investment LLC now owns 233 shares of the software maker’s stock valued at $27,000 after purchasing an additional 75 shares during the period. Heartwood Wealth Advisors LLC purchased a new position in shares of Shopify in the third quarter valued at approximately $27,000. Finally, Curio Wealth LLC acquired a new stake in Shopify during the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Shopify Company Profile

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.