Shopify offers tools for small and medium businesses. The stock is rallying ahead of earnings and reclaiming the 50-day moving average within a double-bottom base. Shopify stock is Tuesday's selection for IBD 50 Stocks To Watch.
Shares gapped down below the 200-day moving average as some of President Donald Trump's tariffs came into effect on April 3. But Shopify stock bounced back during a broader relief rally as Trump walked back some levies and announced a 90-day tariff pause on April 9.
On Tuesday, shares are hovering at the 50-day line after a five-day winning streak as they approach a buy point of 111.
The stock is in an early stage base that could net higher gains after a breakout than a later-stage base would. First-quarter earnings are due on May 8. Sales growth has been steady in the past eight quarters and has ranged between 21% and 31%. Earnings have also grown over the past seven quarters.
Shopify Stock: First-Quarter Estimates
For the first quarter, analysts polled by FactSet estimate earnings of 27 cents per share on $2.3 billion in sales. That suggests a 25% sales increase and 33% earnings growth from the prior year.
However, profit estimates for 2025 and 2026 have been revised to reflect slower growth. In 2025, analysts polled by FactSet see profit expansion of 18% with earnings per share of $1.49. In 2026, they expect 26% growth in per-share earnings to $1.87.
Shopify is a cloud-based platform with software infrastructure and tools for the retail e-commerce industry, among others. These include building online store fronts, running operations and managing inventory and sales. The company also sells artificial intelligence tools for troubleshooting problems to helping businesses project future product segment sales, among other purposes.
Shopify stock has a near-ideal Composite Rating of 98 while the Earnings Per Share Rating is also an impressive 96. Shares have outperformed 93% of other stocks in the Investor's Business Daily database over the past 52 weeks.
Shopify also ranks second in the computer software-enterprise group, behind only Palantir, according to IBD Stock Checkup.
Shares initially listed on the New York Stock Exchange in May 2015. But in March 2025, Shopify, based in Ottawa, Canada, transferred its stock to the Nasdaq. Trading on Nasdaq began on March 31 under the same ticker. Shares also trade on the Toronto Stock Exchange.
Strong Fund Ownership
Mutual funds own 46% of outstanding shares. More funds have been net buyers over the past seven quarters. However, going by price volume metrics during the past 13 weeks, funds have not been adding Shopify stock to their holdings, giving the stock an Accumulation/Distribution Rating of D+.
The Artisan Mid Cap Fund (ARTMX), the Janus Henderson Forty Fund (JARTX), the MFS Growth Fund (MFEGX), and Fidelity Contrafund (FCNTX) hold shares of Shopify stock. All four funds are in the IBD mutual fund index.
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