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Shopify (SHOP) shares are up nearly 15% at the time of writing following news that the e-commerce giant will join the Nasdaq-100 Index ($IUXX) on May 19.
Nasdaq’s announcement arrives only days after SHOP reported $2.36 billion in revenue for its first financial quarter, which was roughly in line with Street estimates.
Including today’s gain, Shopify stock is up 30% versus its April low.
Could Nasdaq-100 Inclusion Lift the Shopify Stock Price?
Nasdaq-100 inclusion could prove a meaningful tailwind for the Canadian e-commerce company as funds that track the index, including the Invesco QQQ Trust (QQQ), will now be required to buy SHOP shares.
Additionally, being part of the Nasdaq-100 puts Shopify in the spotlight alongside major tech giants.
Constituents of that index are typically seen as leaders in their industries. So, it reinforces SHOP’s reputation as a dominant force in e-commerce.
All in all, the Nasdaq-100 inclusion could drive demand and help unlock significant further upside in Shopify stock in the back half of 2025.
SHOP Shares Are Not Out of Juice Just Yet
Despite a significant rally in recent weeks, Benchmark analysts continue to see further upside in Shopify stock.
In a research note last week, they touted the company’s strong fundamentals and expressed confidence in its ability to leverage its customer base and grow market share through the remainder of 2025.
Benchmark currently has a $125 price target on SHOP shares that translates to about 20% upside from current levels. Shopify may be worth an investment at the time of writing also because its recently issued upbeat guidance for the future.
In Q2, the e-commerce platform expects its revenue to grow at a mid-20% rate on a year-over-year basis.
What’s the Consensus View on Shopify?
While not as bullish as Benchmark, other Wall Street firms expect SHOP stock to rip higher from here in the months ahead as well.
The consensus rating on Shopify stock currently sits at “Moderate Buy” with the mean target of about $118 indicating potential upside of more than 12% from current levels.
