SHOP Stock Analysis & Forecast (2026)

Shopify Inc. Technology Software - Application
$127.41
Current Price
84%
Strong Buy
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Data refreshed: April 16, 2026

Key Financial Metrics

Market Cap
$165.76B
P/E Ratio (TTM)
135.5x
P/E Forward
54.7x
Revenue Growth
30.6%
Gross Margin
48.1%
Net Margin
10.7%
Return on Equity
9.8%
Debt/Equity
0.01

AI Analysis Summary

Shopify Inc. (SHOP) is a Technology company in the Software - Application industry with a 84% Strong Buy Score. Key strengths include Revenue Growth (30.6%), Gross Margin (48.1%), Net Margin (10.7%). Our AI evaluates 8 fundamental categories including revenue growth, margin quality, balance sheet strength, cash flow generation, return on capital, and valuation metrics.

Revenue Growth: Strong Gross Margin: Good Net Margin: Good Return on Equity: Low Debt/Equity: Low Risk

This analysis is generated by StrongBuyAnalytics AI using publicly available financial data from SEC filings, earnings reports, and market feeds. It is not personalized investment advice. See our methodology and disclaimer.

SHOP Fundamental Analysis Report
PDF Report Preview
84%
Strong Buy Score
  • 8 Fundamental Categories Analyzed
  • Revenue & Growth Trends
  • Margin & Profitability Analysis
  • Balance Sheet Strength
  • Cash Flow Quality
  • Valuation Assessment
  • AI-Powered Investment Insights
Get Your Free SHOP Report

How It Works: AI Stock Analysis in 60 Seconds

See how our AI analyzes SHOP fundamentals to generate buy/sell signals and Strong Buy Scores.

Why SHOP Has a 84% Score

Our AI evaluates Shopify Inc.'s fundamentals across multiple dimensions. Here is what is driving the current Strong Buy rating:

Recent Catalysts for SHOP

Key developments and data points that may impact Shopify Inc.'s trajectory:

Earnings declined -42.3% — watch for stabilization in coming quarters.
Wall Street consensus target is $159.70 (+25.3% from current price), based on 46 analyst estimates.
Analyst consensus recommendation: Buy.
Institutional ownership at 74.1% — strong smart-money backing.

SHOP vs. Peers

How Shopify Inc. stacks up against comparable Technology companies on key metrics:

Ticker Price Market Cap P/E Rev Growth Net Margin ROE
SHOP $127.41 $165.76B 135.5x 30.6% 10.7% 9.8%
AAPL $266.43 $3.92T 33.7x 15.7% 27.0% 152.0%
MSFT $411.22 $3.06T 25.7x 16.7% 39.0% 34.4%
GOOGL $337.12 $4.08T 31.2x 18.0% 32.8% 35.7%
META $671.58 $1.70T 28.6x 23.8% 30.1% 30.2%

Main Risks for SHOP Investors

Every investment carries risk. Here are the specific risk factors our analysis identified for Shopify Inc.:

High beta of 2.82 means the stock is 182% more volatile than the market — expect larger drawdowns in corrections.
Trailing P/E of 135.5x prices in significant growth — any miss could trigger a sharp selloff.

Generate the full PDF report for a detailed risk-reward framework and bear-case scenarios.

SHOP Balance Sheet & Cash Flow

A snapshot of Shopify Inc.'s financial health based on the most recent filings:

Total Cash
$5.85B
Total Debt
$188.00M
Current Ratio
5.96
FCF Yield
0.8%
EBITDA
$1.93B
Operating Margin
20.3%

Data sourced from the latest SEC filings. Generate the full PDF report for detailed balance sheet and cash flow commentary.

SHOP Valuation Snapshot

Trailing P/E
135.5x
High expectations
Forward P/E
54.7x
Earnings growth expected
Price / Book
12.3x
High intangible value
Analyst Target (Mean)
$159.70
Range: $110 – $200
52-Week Price Range — SHOP is trading at 46% of its range
$80.35 (52W Low) $182.19 (52W High)

Is SHOP a Buy Right Now?

Based on our AI-powered fundamental analysis, SHOP has a Strong Buy Score of 84%, earning a "Strong Buy" rating. This score synthesizes 8 key financial metrics to provide an objective investment signal.

Strong Buy Signal

Shopify Inc. demonstrates robust fundamentals across multiple categories. Key strengths include Revenue Growth (30.6%) and Gross Margin (48.1%). The stock shows characteristics typically associated with outperformers.

SHOP AI Buy & Sell Signals Explained

Our AI analyzes Shopify Inc.'s financial statements to generate buy/sell signals based on quantitative metrics, not market sentiment or news headlines. Here's what drives the 84% score:

  • Revenue Growth: 30.6% year-over-year (above average)
  • Gross Margin: 48.1% (strong pricing power)
  • Net Margin: 10.7% (profitable)
  • Return on Equity: 9.8% (positive returns)

Generate the full PDF report for complete category-by-category scoring and AI-powered investment recommendations.

Key Support / Demand Zones

Technical traders can view real-time demand and supply zones for SHOP on our Demand Zones page. These zones identify key price levels where institutional buying or selling has historically occurred.

With SHOP currently trading at $127.41, our system monitors proximity to these critical levels and can alert you when the stock approaches support or resistance zones.

Subscribe to demand zone alerts to receive real-time notifications when SHOP reaches key technical levels.

Earnings & Revenue Outlook

Shopify Inc. operates in the Technology sector, specifically in Software - Application. Understanding earnings trends is crucial for forecasting SHOP's trajectory.

Current revenue growth of 30.6% significantly outpaces the average company. This strong growth trajectory supports a higher valuation multiple.

Visit our Earnings Calendar to track upcoming SHOP earnings dates and historical beat/miss patterns. Sign up for earnings alerts to get notified before announcements.

SHOP Stock Forecast (Next 3–12 Months)

Our AI projects SHOP's trajectory based on current fundamentals and historical patterns. With a 84% Strong Buy Score, here's what the data suggests:

Bullish Outlook: Shopify Inc. shows strong fundamental momentum. Revenue growth of 30.6% suggests continued expansion. Stocks with similar profiles have historically outperformed over 12-month periods.

For a complete 12-month price forecast with specific bull/bear scenarios, generate the full PDF report.

Valuation Metrics (P/E, Growth, Margins)

Understanding valuation is critical for determining if SHOP is fairly priced. Here's the current snapshot:

  • Market Capitalization: $165.76B
  • P/E Ratio (TTM): 135.5x (high expectations)
  • Forward P/E: 54.7x (based on analyst estimates)
  • Debt/Equity: 0.01 (conservative balance sheet)

Our AI weighs these metrics against growth rates and margin quality to determine if SHOP offers compelling risk-adjusted returns at current prices.

Bull Case for SHOP

Here's why investors are bullish on Shopify Inc.:

  • Revenue Growth (30.6%)
  • Gross Margin (48.1%)
  • Net Margin (10.7%)
  • Debt/Equity (0.01)

With a 84% Strong Buy Score, the bull case is well-supported by current fundamentals. The stock exhibits characteristics of quality compounders that tend to outperform long-term.

Bear Case & Risks for SHOP

Every investment carries risk. Here are potential concerns for SHOP investors:

  • Competitive pressures in Technology
  • Macroeconomic sensitivity and interest rate exposure
  • Execution risk on growth initiatives
  • Valuation compression if growth slows

The full PDF report includes a detailed bear case analysis with specific risk ratings for each category.

Summary / 12-Month Outlook

SHOP Summary: Shopify Inc. earns a 84% Strong Buy Score based on AI analysis of fundamental data. Trading at $127.41 with a $165.76B market cap, the stock shows strong fundamentals supporting a bullish 12-month outlook.

Bull Case: Revenue Growth (30.6%), Gross Margin (48.1%)

For the complete analysis with specific price considerations, growth projections, and AI-powered buy/hold/sell recommendations, generate your free SHOP PDF report.

Learn More About Stock Analysis

Deepen your understanding of the concepts used in this SHOP analysis:

Fundamental Analysis Guide

Learn how to evaluate stocks using financial statements and key metrics.

Understanding P/E Ratio

What P/E ratio tells you about a stock's valuation and growth expectations.

Return on Equity (ROE)

Why ROE matters for stock selection and how to interpret it.

Stock Valuation Methods

Compare DCF, P/E, and other approaches to value stocks like SHOP.

What Are Demand Zones?

Find key support and resistance levels for SHOP and other stocks.

How to Read Earnings Reports

Understand earnings per share, revenue surprises, and guidance.

Related Tools for SHOP

Demand Zone Analyzer SHOP Live Chart Earnings Calendar Institutional Ownership Sector Scanner Average Down Calculator

Frequently Asked Questions about SHOP

Is SHOP a good buy right now?
SHOP currently has a Strong Buy Score of 84% (Strong Buy). Based on AI analysis of fundamentals, SHOP shows strong buy signals with solid revenue growth, margins, and return metrics. Generate a free PDF report for specific buy/hold/sell recommendations.
What is the SHOP stock forecast for 2026?
Our AI forecasts SHOP based on current fundamentals: revenue growth of 30.6%, net margin of 10.7%, and P/E of 135.5x. The 84% Strong Buy Score reflects our outlook combining growth trajectory, margin quality, and valuation. See the full 12-month projection in your PDF report.
What are key support and resistance levels for SHOP?
View real-time SHOP demand zones (support) and supply zones (resistance) on our Demand Zones page. With SHOP currently at $127.41, you can see how close the stock is to key technical levels. Subscribe to get alerts when SHOP approaches these zones.
How do SHOP fundamentals compare to peers?
Shopify Inc. operates in the Technology sector. Key metrics for peer comparison: Gross margin 48.1%, ROE 9.8%, Debt/Equity 0.01. The 84% Strong Buy Score factors in how these metrics stack up against industry averages. Data is refreshed daily.
Is the SHOP analysis PDF report free?
Yes! Your first SHOP fundamental analysis report is completely free with no credit card required. The PDF includes the full Strong Buy Score breakdown, all 8 fundamental categories analyzed, AI-powered insights, and specific investment recommendations. Additional reports are available through our subscription plans starting at $24/month.
What is Shopify Inc.'s market cap and P/E ratio?
Shopify Inc. (SHOP) has a market cap of $165.76B and a trailing P/E ratio of 135.5x (forward P/E: 54.7x). These valuation metrics are key factors in our Strong Buy Score calculation. See all metrics in the PDF report for comprehensive valuation analysis.

This SHOP analysis is for educational and informational purposes only and does not constitute financial advice. All data is sourced from public filings and market feeds. Past performance does not guarantee future results. Read our full disclaimer.