tiprankstipranks
Shopify (TSE:SHOP)
TSX:SHOP
Want to see TSE:SHOP full AI Analyst Report?

Shopify (SHOP) AI Stock Analysis

2,861 Followers

Top Page

TSE:SHOP

Shopify

(TSX:SHOP)

Select Model
Select Model
Select Model
Outperform 78 (OpenAI - Gpt-5.6Sol)
Rating:78Outperform
Price Target:
C$211.00
▼(-0.86% Downside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong financial quality (low leverage and robust free cash flow) and a bullish earnings outlook with continued 30%+ growth and operating leverage. Technicals also support the trend, though near-overbought signals add some caution. The biggest offset is valuation: the very high P/E leaves less room for execution missteps, especially around mix-driven gross profit pressure and rising credit/lending loss exposure.
Positive Factors
Broad-based growth
Shopify is sustaining growth across both transaction volume and revenue, supported by broad expansion across merchants, geographies, and channels. Continued momentum at this scale can reinforce ecosystem adoption, increase payment activity, and provide operating leverage over the next several quarters.
Negative Factors
Gross profit mix pressure
Gross profit growing slower than revenue signals that mix toward Merchant Solutions may constrain margin expansion even while sales remain strong. If this pattern persists, Shopify may need continued efficiency gains to convert rapid volume growth into proportionate operating profit and cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based growth
Shopify is sustaining growth across both transaction volume and revenue, supported by broad expansion across merchants, geographies, and channels. Continued momentum at this scale can reinforce ecosystem adoption, increase payment activity, and provide operating leverage over the next several quarters.
Read all positive factors

Shopify (SHOP) vs. iShares MSCI Canada ETF (EWC)

Shopify Business Overview & Revenue Model

Company Description
Headquartered in Ottawa, Canada, Shopify Inc. is a global commerce company established in 2004. Operating across Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America, it delivers a comprehensive platform ...
How the Company Makes Money
Shopify primarily makes money through two major revenue streams: (1) Subscription Solutions and (2) Merchant Solutions. 1) Subscription Solutions (recurring software revenue) - Shopify sells access to its commerce platform via paid subscription p...

Shopify Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call highlighted broad, durable growth across GMV, revenue, gross profit and free cash flow, strong payments and international momentum, rapid adoption of AI products (Sidekick and Catalog) with measurable merchant impact, solid enterprise and B2B traction, and visible operating leverage. The main cautions were that agentic commerce is still small versus total GMV (early stage), gross profit growth is expected to lag revenue growth due to mix, and credit/capital products introduce scaling risk and loss exposure. On balance, the positives — especially consistent 30%+ growth across key metrics, expanding payments penetration, strong cohort retention, and accelerating AI-driven product adoption — materially outweigh the limited challenges discussed.
Positive Updates
Strong GMV Growth and Scale
GMV rose 32% year-over-year to $116 billion (constant currency >30%), marking the fifth consecutive quarter of GMV growth above 30% and demonstrating broad growth across merchant sizes, geographies and channels.
Negative Updates
Agentic Commerce Still Small Relative to Total GMV
Although agentic/AI channels showed strong growth (traffic and orders up 3x YoY and strong conversion signals), the absolute volume remains small relative to the $116 billion GMV base, indicating early-stage monetization and scale risk.
Read all updates
Q2-2026 Updates
Negative
Strong GMV Growth and Scale
GMV rose 32% year-over-year to $116 billion (constant currency >30%), marking the fifth consecutive quarter of GMV growth above 30% and demonstrating broad growth across merchant sizes, geographies and channels.
Read all positive updates
Company Guidance
Management guided Q3 to revenue growth in the low‑30% range year‑over‑year, gross profit dollars growth in the mid‑to‑high‑20% range, operating expenses of 33–34% of revenue (versus 37% in Q3 last year), and a free cash flow margin in the high‑teens to low‑20s (inclusive of <1 point tailwind from an accounting change to merchant cash advances), with no significant FX impact expected. For context they pointed to strong Q2 results that underpin the outlook: GMV $116B (+32% YoY), revenue +34% (constant‑currency GMV >30%), Q2 free cash flow margin ~18%, payments penetration 68% of global GMV, Shop Pay GMV +53%, international GMV +37%, offline GMV +32% and B2B GMV +76%.

Shopify Financial Statement Overview

Summary
Overall fundamentals are strong, led by an excellent balance sheet (very low leverage, improving ROE) and robust, high-quality cash generation (FCF closely matches net income and is growing). Income statement trends show solid revenue growth and recovered profitability, but operating profitability vs. net income is inconsistent and margins have been historically volatile, which modestly tempers the score.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.27B11.76B8.88B7.06B5.60B4.61B
Gross Profit6.33B5.63B4.47B3.52B2.75B2.48B
EBITDA2.22B1.96B1.28B-8.00M-383.00M3.21B
Net Income1.95B1.25B2.02B132.00M-3.46B2.91B
Balance Sheet
Total Assets14.47B15.16B13.92B11.30B10.76B13.34B
Cash, Cash Equivalents and Short-Term Investments4.95B5.77B5.48B5.01B5.05B7.77B
Total Debt178.00M188.00M1.13B1.15B1.40B1.17B
Total Liabilities1.79B1.71B2.37B2.23B2.52B2.21B
Stockholders Equity12.68B13.45B11.56B9.07B8.24B11.13B
Cash Flow
Free Cash Flow2.36B2.04B1.60B905.00M-186.00M453.64M
Operating Cash Flow2.38B2.07B1.62B944.00M-136.00M504.43M
Investing Cash Flow545.78M-1.21B-1.59B-1.24B-719.00M-2.35B
Financing Cash Flow-2.82B-825.20M61.00M60.00M18.00M1.65B

Shopify Technical Analysis

Technical Analysis Sentiment
Negative
Last Price212.84
Price Trends
50DMA
188.36
Negative
100DMA
172.39
Positive
200DMA
181.56
Negative
Market Momentum
MACD
-0.26
Positive
RSI
35.88
Neutral
STOCH
13.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHOP, the sentiment is Negative. The current price of 212.84 is above the 20-day moving average (MA) of 203.97, above the 50-day MA of 188.36, and above the 200-day MA of 181.56, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SHOP.

Shopify Risk Analysis

Shopify disclosed 48 risk factors in its most recent earnings report. Shopify reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Shopify Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$238.07B85.0915.06%31.24%-16.71%
73
Outperform
C$8.92B35.6711.26%11.62%19.63%
72
Outperform
C$60.48B45.3125.24%0.20%16.53%53.02%
71
Outperform
C$4.51B38.1120.88%15.99%252.03%
70
Outperform
C$7.79B5.0028.29%4.89%0.54%54.92%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
C$1.87B-14.03-6.60%10.59%84.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SHOP
Shopify
175.13
-25.52
-12.72%
TSE:OTEX
Open Text
31.24
-15.53
-33.20%
TSE:DSG
The Descartes Systems Group
101.44
-46.49
-31.43%
TSE:CSU
Constellation Software
2,801.99
-1,620.17
-36.64%
TSE:KXS
Kinaxis Inc
164.71
-18.47
-10.08%
TSE:LSPD
Lightspeed POS Inc
13.57
-2.74
-16.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2026