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Shopify (SHOP) is a cloud-based, multi-channel e-commerce platform. The company provides its users with the necessary tools to manage, design, and market their products across multiple channels such as web and mobile stores, pop-up shops, social media, physical stores, and more. It enables users to manage inventory, process orders and payments, and assist in deliveries. The company primarily offers its services to small and medium-size businesses.
Founded in 2004, the company is spread across Europe, the Americas, the Middle East, and the Asia-Pacific with its headquarters in Ontario, Canada.
About Shopify Stock
Shopify has a market cap of $144.25 billion with the stock trading sideways and gaining just 2.8% in 2025. The stock did see a slight dip in early April but has recovered while gaining 19.2% in the last month. Despite this, it is still 16% behind its 52-week high set in February.
Shopify Slightly Beats Revenue Estimates
Shopify announced its first-quarter results on May 8. Revenue came in at $2.36 billion, outpacing analysts’ $2.33 billion estimate.
During the quarter Shopify had gross merchandise volume (GMV) of $74.75 billion, better than Wall Street’s $74.66 billion estimate. Monthly recurring revenue came to $182 million, beating analysts’ $179.99 million estimate.
Revenue from its Merchant Solutions segment came to $1.74 billion, surpassing the $1.71 billion estimate. Subscription Solutions revenue stood at $620 million while analysts predicted $621.22 million.
Shopify saw a swift rise in operating expenses which rose 10.9% to $966 million. Operating margin came at 8.6%, up from 4.6% posted in the same quarter last year while billings increased 28.1% to $2.36 billion. The company ended the quarter with a cash balance of $5.51 billion while free cash flow increased 56.5% to $363 million.
For the ongoing Q2, management has provided guidance where they expect revenue to grow at a mid-20% rate year-over-year, while gross profit is pegged to grow at a high-20% rate and operating expenses as a percentage of revenue is anticipated at a 39% to 40% range.
Shopify Labeled ‘Underappreciated’ by Analyst
Wells Fargo analyst Andrew Bauch called Shopify an underappreciated artificial intelligence (AI) play in a new research note last week. The analyst has given the stock an “Overweight” rating while raising its price target from $107 to $125, reflecting nearly 17% upside potential.
The analyst has called Shopify an “underappreciated” player in the AI space while highlighting its strong commitment to AI integration, partnership with market leaders such as OpenAI, Meta (META), and Perplexity, and innovative merchant solutions. He further claimed that instead of being threatened by the AI revolution, Shopify stands to gain from it given its AI adoption and expansion in e-commerce.
Wells Fargo claims the company to be well-positioned to capitalize on the rising AI-powered commerce industry and project agentic commerce to grow to $505 billion by 2030, a solid 30% growth rate annually in gross merchandise volume (GMV). They also expect Shopify to keep a 12.5% market share in the market providing the company a sizable boost from its current GMV.
Analyst Takes on SHOP
Analysts have a positive outlook on the company with a consensus “Moderate Buy” rating and a mean price target of $116.88 reflecting upside potential of roughly 9%. The stock has been reviewed by 45 analysts in total while receiving 28 “Strong Buy” ratings, two “Moderate Buy” ratings, 14 “Hold” ratings, and one “Strong Sell” rating.
