Shopify Inc SHOP

What the company does

Shopify Inc is a mega-cap company in the Technology sector (Software - Application), with a market value of $218.9B, based in the USA.

It employs about 7,600 people and has been listed since May 21, 2015.

Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 114.0 versus 38.7 for the median of the Technology sector in our universe (65 companies) — relatively expensive.

Revenue is growing 34% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 82.6 — they expect higher earnings.

The average analyst price target is 176.35, 4% above the current price (their view, not ours).

The stock sits at 85% of its one-year range (0% = the low, 100% = the high).

The risks

• • The stock is more volatile than average (beta 2.6) — big daily moves both ways.
• • Quarterly report in 9 days (2026-11-03) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 42 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ More cash than debt.
• ✅ Most analysts rate it buy (41 vs 1).
• ✅ Revenue is growing 34% a year.

What changed this week

Over the past week the stock fell 0.5% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

This week's news

• Agent cloud startup Daytona hits $1B valuation backed by FirstMark and a who’s who of angels finance.yahoo.com · 2026-10-23
  What the article says

  Daytona Platforms announced on Friday that it had raised a $60 million Series B round at a $1 billion valuation led by FirstMark Growth. The company says it has now raised a total of $91 million. The New York-based startup has attracted not just FirstMark (which also led its $24 million Series A in February), but also… source ↗

• Shopify Inc. (SHOP) Could Benefit From AI-Driven Agentic Commerce, Says Polen Focus Growth Strategy finance.yahoo.com · 2026-10-23
  What the article says

  Polen Capital, an investment management company, released its "Polen Focus Growth Strategy" Q3 2026 investor letter. A copy of the letter can be downloaded here. The fund outperformed the Russell 1000 Growth Index in the third quarter of 2026, as investors began distinguishing between businesses vulnerable to… source ↗

• MaxLinear's Q3 Earnings Top Estimates, Revenues Increase Y/Y finance.yahoo.com · 2026-10-23
  What the article says

  MaxLinear MXL reported third-quarter 2026 non-GAAP earnings of 62 cents per share, beating the Zacks Consensus Estimate by 10.71%. The company reported earnings of 14 cents per share in the year-ago quarter and 35 cents in the previous quarter. Revenues of $218.1 million surged 72% year over year and surpassed the… source ↗

• Shopify (SHOP) Could Be 17% Undervalued Following Its AI Checkout Push finance.yahoo.com · 2026-10-22
  What the article says

  Shopify (SHOP) is back in focus after the launch of Shop Pay checkout with Meta's Muse AI agent, a move that has coincided with a 33% jump in the share price over the past month. Shopify's recent AI headlines plug into a stronger run, with a 26.4% 1‑month share price return and a 55.6% gain over 90 days, while the… source ↗

• e.l.f. Beauty (ELF) As Shopify App News Meets A Fully Valued Narrative finance.yahoo.com · 2026-10-22
  What the article says

  e.l.f. Beauty (ELF) has drawn attention after poq, which powers its native mobile apps, was recognized as a Shopify Certified Technology Partner. This development highlights a fresh angle on how investors might think about the stock. Recent headlines around e.l.f. Beauty span poq's Shopify certification, a Kuromi… source ↗

• Shopify-Like IPO Successes Becoming Rare in Canada, Nowlan Says finance.yahoo.com · 2026-10-22
  What the article says

  (Bloomberg) -- Canada will struggle to find another stock-market success story like Shopify Inc. as the country grapples with a public-listing drought and a delisting trend, according to Daniel Nowlan at National Bank Capital Markets. Most Read from Bloomberg Electronic Arts to Shed 400 Jobs, Shut Down BioWare to Cut… source ↗

What changed since last week

• New risk flag: earnings report coming up.