Shopify (NASDAQ:SHOP) Releases Earnings Results, Beats Expectations By $998.78 EPS

Shopify (NASDAQ:SHOP) (TSE:SHOP) announced its quarterly earnings results on Tuesday. The software maker reported $999.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $998.78, reports. The firm had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. Shopify had a net margin of 10.65% and a return on equity of 11.52%.

Shopify Stock Performance

NASDAQ:SHOP traded down $2.23 during mid-day trading on Wednesday, reaching $105.40. The stock had a trading volume of 12,283,198 shares, compared to its average volume of 10,927,223. The firm has a 50 day moving average price of $122.10 and a two-hundred day moving average price of $141.64. The stock has a market capitalization of $137.45 billion, a P/E ratio of 113.33, a P/E/G ratio of 4.53 and a beta of 2.64. Shopify has a one year low of $88.14 and a one year high of $182.19.

Institutional Investors Weigh In On Shopify

A number of institutional investors have recently made changes to their positions in SHOP. JPL Wealth Management LLC purchased a new position in shares of Shopify in the third quarter worth about $32,000. Strive Financial Group LLC bought a new position in Shopify during the 4th quarter worth approximately $40,000. Swiss RE Ltd. purchased a new position in Shopify in the 4th quarter worth approximately $45,000. Colonial Trust Co SC lifted its position in Shopify by 31.5% in the fourth quarter. Colonial Trust Co SC now owns 447 shares of the software maker’s stock valued at $72,000 after purchasing an additional 107 shares during the last quarter. Finally, Osterweis Capital Management Inc. bought a new stake in Shopify in the second quarter valued at approximately $53,000. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on SHOP. TD Cowen raised shares of Shopify from a “hold” rating to a “buy” rating and set a $159.00 target price on the stock in a report on Wednesday, February 11th. Weiss Ratings reissued a “hold (c)” rating on shares of Shopify in a report on Friday, March 27th. Wedbush decreased their price objective on shares of Shopify from $185.00 to $160.00 and set an “outperform” rating on the stock in a research report on Thursday, February 12th. Wells Fargo & Company lowered their target price on shares of Shopify from $166.00 to $144.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Barclays set a $126.00 target price on shares of Shopify and gave the company an “equal weight” rating in a research report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $159.58.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 revenue and GMV strength — Shopify reported Q1 revenue up ~34% to $3.17B and merchants cleared >$100B in GMV, topping revenue estimates and showing healthy demand growth. Shopify Q1 revenue rises 34% as GMV tops $100bn
• Positive Sentiment: AI momentum — Shopify said AI drove a large increase in orders/traffic (orders up ~13x in Q1, AI traffic up ~8x), which supports longer?term merchant monetization and product differentiation. AI Drove Orders on Shopify Up 13 Times in Q1
• Positive Sentiment: Top analyst reaffirmation — Needham reiterated a “buy” with a $180 target, signaling some bullish conviction about Shopify’s longer?term growth despite recent volatility. Benzinga
• Neutral Sentiment: Q2 revenue guide roughly in line — Shopify issued Q2 revenue guidance in the ~$3.4B–$3.5B range, which largely tracked Street expectations (limits upside surprise potential). Shopify press release
• Negative Sentiment: Cautious outlook and profit miss reaction — Despite the beats, management’s forward commentary and operating profit/margin concerns prompted a sharp selloff as investors focused on slowing growth and near?term cost pressure. Globe and Mail
• Negative Sentiment: Analyst price?target cuts — Wells Fargo trimmed its target to $144 (still “overweight”) and DA Davidson cut to $140 (still “buy”), reducing some street upside expectations and contributing to selling pressure. Benzinga The Fly
• Negative Sentiment: Market narrative and coverage — Multiple outlets and commentators highlighted the same story: strong Q1 numbers paired with a softer near?term outlook (including coverage that the AI pitch didn’t offset cautious guidance), amplifying downside moves. Yahoo Finance

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.