Shopify (NASDAQ:SHOP) Announces Earnings Results, Beats Expectations By $0.16 EPS

Shopify (NASDAQ:SHOP) (TSE:SHOP) posted its earnings results on Tuesday. The software maker reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.16, FiscalAI reports. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The firm had revenue of $3.74 billion during the quarter. The firm’s revenue for the quarter was up 31.6% compared to the same quarter last year. During the same period last year, the company posted $0.34 EPS.

Shopify Price Performance

Shares of SHOP opened at $156.22 on Tuesday. Shopify has a one year low of $94.00 and a one year high of $180.88. The stock’s fifty day moving average is $152.91 and its 200-day moving average is $130.21. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The firm has a market capitalization of $201.00 billion, a price-to-earnings ratio of 105.55, a price-to-earnings-growth ratio of 3.47 and a beta of 2.62.

Analyst Ratings Changes

SHOP has been the subject of several analyst reports. UBS Group reaffirmed a “neutral” rating and issued a $145.00 target price (up from $130.00) on shares of Shopify in a research report on Thursday, August 6th. JPMorgan Chase & Co. increased their price objective on shares of Shopify from $185.00 to $200.00 and gave the company an “overweight” rating in a research report on Tuesday, October 6th. Sanford C. Bernstein initiated coverage on shares of Shopify in a research note on Thursday, September 10th. They set an “outperform” rating and a $160.00 price objective on the stock. The Goldman Sachs Group boosted their target price on shares of Shopify from $170.00 to $194.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Finally, Citizens Jmp raised their price target on shares of Shopify from $150.00 to $185.00 and gave the company a “market outperform” rating in a report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $178.44.

Hedge Funds Weigh In On Shopify

Large investors have recently bought and sold shares of the stock. The Manufacturers Life Insurance Company raised its position in shares of Shopify by 8.5% during the first quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker’s stock worth $998,137,000 after purchasing an additional 660,198 shares during the period. Swiss National Bank grew its position in Shopify by 27.0% during the first quarter. Swiss National Bank now owns 4,115,300 shares of the software maker’s stock valued at $487,580,000 after purchasing an additional 876,100 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its position in Shopify by 4.1% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,678,602 shares of the software maker’s stock valued at $436,356,000 after purchasing an additional 145,500 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Shopify by 4.8% in the 1st quarter. Bank of New York Mellon Corp now owns 3,495,964 shares of the software maker’s stock valued at $414,691,000 after buying an additional 159,873 shares during the period. Finally, Amova Asset Management Americas Inc. increased its stake in Shopify by 5.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,458,265 shares of the software maker’s stock valued at $410,219,000 after buying an additional 165,080 shares during the period. Institutional investors and hedge funds own 69.27% of the company’s stock.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: KeyCorp raised its Shopify price target from $180 to $185 and maintained an “overweight” rating, suggesting continued confidence in the company’s growth outlook. Shopify Gears Up For Q3 Print; Recent Forecast Changes
• Positive Sentiment: Analyst previews point to continued gross merchandise volume growth, increasing adoption of Shopify Payments and momentum from artificial-intelligence tools. Zacks also identified Shopify as one of four internet companies positioned to exceed earnings expectations. Should Shopify Stock Be in Your Portfolio Pre-Q3 Earnings?
• Positive Sentiment: CEO Tobi Lütke said Shop Pay has reached roughly 400 million users and is expanding into AI-agent transactions and non-Shopify stores. These initiatives could support longer-term payment volume and platform expansion, although they are unlikely to materially affect the reported quarter. Shopify’s CEO Counts 400 Million Shop Pay Users
• Neutral Sentiment: Shopify’s stock previously rallied sharply after revenue growth of about 34% was highlighted by Bristol Gate Capital, but the investment letter also noted that market gains were concentrated in a small number of companies. Shopify Surges as Revenue Climbs
• Negative Sentiment: At roughly 105 times earnings, Shopify carries a demanding valuation. Investors may react negatively if third-quarter revenue, margins or forward guidance fail to exceed already elevated expectations. Should Shopify Stock Be in Your Portfolio Pre-Q3 Earnings?
• Negative Sentiment: Some analysts caution that rising investments in growth and AI could pressure margins, making profitability and operating-expense guidance important parts of the earnings reaction.
• Negative Sentiment: Six major funds reduced or eliminated Shopify positions during the latest quarter, signaling profit-taking or valuation concerns despite the stock’s subsequent gains. Six Big Funds Sold Shopify Last Quarter

About Shopify

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants’ own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.