SHOP Stock Recent News

Besides Wall Street's top-and-bottom-line estimates for Shopify (SHOP), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2025.

Zacks.com users have recently been watching Shopify (SHOP) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Shopify continues to grow revenues above 20% per year, driven by strong global expansion and a resilient, diversified SaaS business model. Given SHOP's operating leverage, margin improvement is steady, and free cash flow and profitability grow right along with it. After Shopify's Q1 2025, the company still has Q1 cash balance sheet of over $5.5 billion and little debt.

Since launching its initial public offering (IPO) in 2015, Shopify (SHOP -1.58%) has garnered attention for its ease of use and rapid transaction processing. The stock continued to grow as the company expanded its e-commerce ecosystem, elevating its valuation.

I reiterate my Sell rating on Shopify, due to overvaluation with a fair value estimate of $96 per share, despite strong operational execution. Shopify's global expansion of payment solutions and Shop Pay installments are key drivers for long-term growth and merchant adoption. While management balances topline growth and profitability, potential trade uncertainties could impact cross-border e-commerce in the near term.

Shopify Looks Expensive; Here's Why I'm Still Buying

Shopify's premium valuation is now more justified due to its maturing business model, robust Payments growth, and sustained revenue momentum. Major tailwinds include expanding Shopify Payments, USD devaluation boosting international results, and new EU-US trade deals supporting cross-border GMV. Risks remain, especially from potential US-China trade tensions, but consensus expects 20%+ top-line growth and strong free cash flow expansion.

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