Needham & Company LLC Reaffirms Buy Rating for Shopify (NASDAQ:SHOP)

Shopify (NASDAQ:SHOP) (TSE:SHOP)‘s stock had its “buy” rating restated by research analysts at Needham & Company LLC in a report released on Thursday,Benzinga reports. They presently have a $180.00 price target on the software maker’s stock. Needham & Company LLC’s target price indicates a potential upside of 51.76% from the company’s previous close.

Several other brokerages also recently issued reports on SHOP. Truist Financial set a $155.00 price objective on shares of Shopify and gave the stock a “hold” rating in a research report on Tuesday, November 4th. Scotiabank upgraded shares of Shopify from a “sector perform” rating to an “outperform” rating and increased their target price for the stock from $165.00 to $200.00 in a research note on Thursday, January 8th. BNP Paribas Exane began coverage on Shopify in a report on Monday, November 24th. They set a “neutral” rating on the stock. Arete Research set a $175.00 price objective on Shopify in a research note on Monday, February 2nd. Finally, DZ Bank raised Shopify from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 6th. Twenty-eight analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company. Based on data from MarketBeat, Shopify currently has a consensus rating of “Moderate Buy” and a consensus price target of $168.19.

Shopify Trading Down 6.8%

Shares of NASDAQ SHOP opened at $118.61 on Thursday. The stock has a market cap of $154.41 billion, a P/E ratio of 87.86, a P/E/G ratio of 3.75 and a beta of 2.83. Shopify has a twelve month low of $69.84 and a twelve month high of $182.19. The stock has a 50 day moving average of $152.31 and a two-hundred day moving average of $151.02.

Hedge Funds Weigh In On Shopify

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Aviva PLC lifted its stake in shares of Shopify by 5.7% in the fourth quarter. Aviva PLC now owns 1,023,213 shares of the software maker’s stock valued at $164,880,000 after purchasing an additional 55,439 shares during the period. Founders Financial Alliance LLC increased its holdings in Shopify by 5.2% in the fourth quarter. Founders Financial Alliance LLC now owns 1,768 shares of the software maker’s stock valued at $285,000 after buying an additional 87 shares in the last quarter. Great Valley Advisor Group Inc. increased its holdings in Shopify by 2.9% in the fourth quarter. Great Valley Advisor Group Inc. now owns 15,460 shares of the software maker’s stock valued at $2,488,000 after buying an additional 436 shares in the last quarter. Kovack Advisors Inc. lifted its position in shares of Shopify by 311.4% during the 4th quarter. Kovack Advisors Inc. now owns 52,668 shares of the software maker’s stock valued at $8,478,000 after acquiring an additional 39,867 shares during the period. Finally, ICICI Prudential Asset Management Co Ltd boosted its stake in shares of Shopify by 4.7% during the 4th quarter. ICICI Prudential Asset Management Co Ltd now owns 19,621 shares of the software maker’s stock worth $3,158,000 after acquiring an additional 879 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Revenue and GMV beat: Q4 revenue rose ~31% YoY ($3.67B) and GMV also grew ~31%, outpacing consensus and showing continued AI-driven demand across regions and channels. Shopify Defies Logic: AI Disruption Is a Good Thing
• Positive Sentiment: Strong forward revenue guide: Shopify guided Q1 revenue above Street estimates (low‑30% growth target), signaling momentum into 2026 that some analysts view as durable. Shopify forecasts quarterly revenue above estimates on strong demand
• Positive Sentiment: $2B buyback and strong cash flow: Management authorized a $2B repurchase (about ~3% of market cap) and reported healthy free cash flow, underscoring balance-sheet flexibility (net cash, no debt). Shopify’s Standout 2025: The Launchpad for a New Era of Commerce in 2026
• Neutral Sentiment: Short interest fell sharply in January (~27% decline), reducing immediate squeeze risk but also signaling changing trader positioning; this can dampen volatility from short-covering.
• Negative Sentiment: EPS miss and mixed profitability signals: Reported EPS (~$0.46–$0.48) missed some consensus estimates, and management flagged margin pressures from a higher mix of Merchant Solutions plus rising investments. Shopify (SHOP) Misses Q4 Earnings Estimates
• Negative Sentiment: Buyback execution & cash-risk concerns: Analysts and commentators flagged the $2B repurchase as raising questions about timing (algorithmic triggers), volatility management and opportunity cost, which added to investor caution. Shopify’s $2 Billion Buyback Plan Raises Questions on Volatility, Execution, and Cash Risk
• Negative Sentiment: Analyst caution and profit-taking: Some shops cut targets or issued cautious notes (and at least one bearish forecast), prompting profit-taking after the recent run — amplifying the stock’s selloff despite upbeat guidance. Why I’m Not Buying the Dip in Shopify 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.