The Goldman Sachs Group Boosts Shopify (NASDAQ:SHOP) Price Target to $194.00

Shopify (NASDAQ:SHOP) (TSE:SHOP) had its price objective increased by stock analysts at The Goldman Sachs Group from $170.00 to $194.00 in a research report issued on Thursday, Marketbeat Ratings reports. The firm currently has a “buy” rating on the software maker’s stock. The Goldman Sachs Group’s price objective suggests a potential upside of 34.50% from the stock’s previous close.

A number of other equities research analysts have also recently issued reports on SHOP. Citigroup reaffirmed an “outperform” rating on shares of Shopify in a research note on Thursday. Evercore restated an “outperform” rating and set a $175.00 price target on shares of Shopify in a research report on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and set a $180.00 price objective on shares of Shopify in a research note on Tuesday, May 5th. Robert W. Baird set a $150.00 price objective on Shopify in a report on Wednesday, May 6th. Finally, Wells Fargo & Company reduced their price target on Shopify from $166.00 to $144.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $162.58.

Shopify Trading Up 17.0%

Shares of NASDAQ SHOP opened at $144.24 on Thursday. The stock has a market cap of $187.17 billion, a price-to-earnings ratio of 142.81, a P/E/G ratio of 2.66 and a beta of 2.58. Shopify has a 1-year low of $94.00 and a 1-year high of $182.19. The stock’s 50-day moving average is $117.98 and its 200 day moving average is $119.65.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.02. Shopify had a return on equity of 12.07% and a net margin of 10.77%.The business had revenue of $3.58 billion during the quarter. During the same period in the prior year, the company earned $0.69 EPS. The firm’s quarterly revenue was up 33.7% compared to the same quarter last year. On average, analysts forecast that Shopify will post 1.4 EPS for the current fiscal year.

Hedge Funds Weigh In On Shopify

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in Shopify by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker’s stock valued at $8,158,643,000 after acquiring an additional 743,803 shares in the last quarter. Norges Bank bought a new stake in Shopify during the 4th quarter valued at approximately $2,611,797,000. Invesco Ltd. grew its holdings in shares of Shopify by 9.8% during the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after acquiring an additional 1,252,074 shares during the period. Geode Capital Management LLC raised its position in shares of Shopify by 6.2% in the 4th quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock worth $2,043,365,000 after acquiring an additional 737,892 shares in the last quarter. Finally, Mackenzie Financial Corp lifted its stake in shares of Shopify by 9.1% in the 4th quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker’s stock valued at $1,627,352,000 after purchasing an additional 827,643 shares during the period. 69.27% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Broad-based Q2 growth exceeded expectations. Revenue rose 33.7% year over year to $3.58 billion, while adjusted EPS of $0.42 topped the roughly $0.40 consensus estimate. Gross merchandise volume, gross profit and free cash flow also grew more than 30%, and free-cash-flow margin reached 18%. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit and Free Cash Flow
• Positive Sentiment: Q3 guidance was above Wall Street forecasts. Shopify projected revenue of approximately $3.7 billion to $3.8 billion, implying growth in the low 30% range and exceeding the consensus estimate of about $3.6 billion. The outlook eased concerns that AI competition could slow merchant additions or pressure growth. Shopify expects Q3 revenue growth in the low 30s as it expands agentic commerce infrastructure
• Positive Sentiment: AI is generating additional traffic and orders. Shopify said referrals from AI platforms including ChatGPT and Gemini, along with orders originating from those channels, tripled year over year in Q2. Management described AI as expanding entrepreneurial access and positioning Shopify as infrastructure for agentic commerce. Shopify executive says AI is ushering in a golden age of entrepreneurship
• Positive Sentiment: Both major business segments contributed. Subscription solutions and merchant services helped drive the profit increase, suggesting growth is not dependent on a single product line. Shopify Profit Jumps as Subscriptions, Merchant Services Boost Revenues

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.