• ATB Capital upgraded Shopify to ‘Outperform’ from ‘Sector Perform’ and said that it sees a "strong growth potential" for Shopify's agentic commerce platform.
• Analysts on average have a ‘Buy’ rating on the stock, according to data from Koyfin, with 35 of them rating the stock ‘Buy’ or higher.
• Wall Street analysts expect Shopify to report a quarterly revenue of $3.59 billion, a 28% jump from a year earlier, and EPS is estimated to be $0.51, according to Fiscal AI.

Shopify Inc. shares surged more than 7% on Tuesday to notch their best session in six months, as investors positioned ahead of the company’s quarterly earnings. Markets are looking for details on holiday-driven demand and updates on the growth of its agentic commerce platform.

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A pair of recent Wall Street upgrades helped fuel a third consecutive day of gains. Still, Shopify stock is down nearly 23% so far this year and is on track for its first annual loss following three straight years of gains.

Wall Street Awaits More Details From SHOP

On Tuesday, ATB Capital upgraded Shopify to ‘Outperform’ from ‘Sector Perform’ and said that it sees a "strong growth potential" for Shopify's agentic commerce platform.

On the other hand, Benchmark lowered its price target on Shopify to $145 from $195 and maintained a ‘Buy’ rating on the shares, according to TheFly. The firms said that their analysis of Black Friday-Cyber Monday sales performance supports fourth-quarter gross merchandise value up to $121.7 billion, modestly above consensus.

Analysts on average have a ‘Buy’ rating on the stock, according to data from Koyfin, with 35 of them rating the stock ‘Buy’ or higher, 16 analysts rating it ‘Hold’ and one ‘Sell.’ The average price target of 52 analysts is $178.13, implying a 40% upside to the last closing price of $127.24.

MoffettNathanson upgraded Shopify to ‘Buy’ from ‘Neutral’ on Monday and said that the recent selloff in the shares has created an "unusually attractive entry point.” The firm said that it sees Shopify as a "long-term winner in the AI commerce wars." The company will benefit, not be threatened, from AI, and MoffettNathanson believes direct commerce is taking share from Amazon.

SHOP Earnings Preview 

Wall Street analysts expect Shopify to report a quarterly revenue of $3.59 billion, a 28% jump from a year earlier and earnings per share are estimated to be $0.51, compared to $0.44 a year ago, according to data from Fiscal AI. The company is expected to report fourth-quarter results on Wednesday, before markets open.

Shopify is expected to see a boost from holiday-season sales and from its efforts to tap into AI. The AI initiatives that Shopify has rolled out propelled the stock to a 50% jump in 2025.

In December, Shopify announced that Agentic Storefronts help brands on Shopify be instantly and accurately discovered on AI platforms such as ChatGPT, Perplexity, and Microsoft Copilot, with more to be integrated soon.

Shopify’s AI assistant Sidekick helps businesses initiate conversations to assist with improving their business, ensure creativity and also streamline workflows. The company's first AI initiative, “Shopify Magic,” helps merchants generate everything from emails to product descriptions with a single click.

What Is Retail Thinking?

Retail sentiment on Shopify jumped to ‘extremely bullish’ from ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. In the last 24 hours, retail message volumes on the platform jumped 53%.

A user on Stocktwits said that they expect the stock to hit the $140 mark, implying a 10% upside to Tuesday’s close.

Shares of Shopify have gained nearly 6% in the last 12 months.

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