Shares of Shopify Inc. NYSE: SHOP closed just over $137 on Wednesday, continuing to drift lower from the multi-year high set at the start of August. That peak was driven by the company's blowout Q2 earnings report, which smashed expectations and showed revenue growth accelerating almost across the board.
Shopify's Subscription Solutions surge 16.5% in the second quarter of 2025, fueled by higher-priced plans, extended trials, and enterprise adoption.
SHOP's surging merchant revenues, global expansion, and AI-powered tools drive momentum, but valuation and competition raise caution.
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Shopify (SHOP) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Shopify delivered a strong Q2, beating earnings and revenue expectations, with 31% GMV growth and robust free cash flow margins. Merchant Solutions drove sequential revenue acceleration, while Subscription Solutions showed steady, but slower, growth; gross profit and cash flow trends remain impressive. Despite strong fundamentals and a positive outlook, Shopify's valuation is now excessive, trading at a significant premium to its historical average, as well as Amazon.
Shares of Shopify (SHOP -1.05%) soared after the e-commerce software company reported strong results and issued upbeat guidance, saying an expected tariff effect has not materialized.
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Shopify continues to deliver exceptional 30%+ revenue growth and margin expansion at scale, outperforming expectations and gaining market share in key verticals. Despite stellar fundamentals, Shopify's valuation is extremely high, trading at 17x forward sales and over 100x forward earnings, leaving little room for error. Recent margin pressure and lack of near-term margin expansion make it difficult to justify buying at these levels, even with optimistic long-term assumptions.
SHOP surges 22% after Q2 beats, fueled by strong GMV growth, rising merchant revenues, and upbeat Q3 guidance.
Shopify NYSE: SHOP stock appears well-positioned to reach $200, following better-than-expected Q2 earnings that reaffirmed its accelerating growth trajectory. The e-commerce company's results and forward guidance suggest that long-term analyst forecasts may be underestimating its potential, presenting an attractive opportunity for investors.
Shopify saw revenues climb 31% during its quarter while avoiding the impact of tariffs. “Our merchants are succeeding,” Chief Financial Officer Jeff Hoffmeister said on the eCommerce company's earnings call Wednesday (Aug. 6).