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

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s stock price dropped 7.5% 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 mid-day 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 firms have also weighed in on SHOP. BNP Paribas Exane assumed coverage on shares of Shopify in a research note on Monday, November 24th. They set a “neutral” rating on the stock. DA Davidson increased their target price on shares of Shopify from $185.00 to $195.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. Citigroup reissued a “market outperform” rating on shares of Shopify in a report on Thursday, December 4th. Benchmark dropped their price objective on Shopify from $195.00 to $145.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, Moffett Nathanson upgraded Shopify from a “neutral” rating to a “buy” rating and set a $150.00 price target for the company in a report on Monday. Twenty-eight equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $166.67.

Trending Headlines about Shopify

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

Hedge Funds Weigh In On Shopify

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

Shopify Stock Down 7.5%

The stock has a market cap of $142.99 billion, a P/E ratio of 81.36, a price-to-earnings-growth ratio of 3.75 and a beta of 2.83. The firm has a 50 day simple moving average of $152.31 and a 200-day simple moving average of $151.02.

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.