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Shopify’s stock price has soared over the past couple of months after it revealed solid second quarterly returns and an optimistic outlook.
The Canadian e-commerce giant had beaten analysts’ expectations and predicted strong revenue growth for the final three months of the year.
The upbeat announcement has galvanized investor enthusiasm for the company, which makes internet infrastructure for millions of online businesses.
But should we expect the SHOP stock price to rise even further over the coming months and maybe even return to its all-time high of three years ago?
In our SHOP stock forecast for 2025-2030 we look at the outlook for Shopify stock and reveal the views of stock market analysts following the company.
Key Takeaways
- Shopify has been used by brands such as Mattel, Gymshark, Heinz, and Netflix.
- Revenue increased 21% year-over-year to $2 billion during the second quarter of 2024.
- Shopify stock is rated a ‘moderate buy’ according to the views of 41 analysts, compiled by MarketBeat as of October 8, 2024.
- The consensus Shopify stock predictions are for the price to slip 3% over the coming year to $78.38 from its $80.88 level at the close on October 7, 2024.
- The company has predicted its revenue will grow at a low-to-mid twenties percentage rate on a year-over-year basis during the third quarter.
- Show Full Guide
Summary of the Latest Shopify Stock Predictions
| Shopify Stock Forecast (as of October 8, 2024) |
1-Year Forecast | 2027 (January) | 5-Year Forecast to October 2029 |
|---|---|---|---|
| MarketBeat | $78.38 | – | – |
| WalletInvestor | $99.23 | $125 | $172.97 |
| TipRanks | $79.08 | – | – |
| Coincodex | $225.10
(Jan 2026) |
$375.52 | $1,743.43
(Jan 2030) |
Shopify Stock Analysis
Shopify is a secure, cloud-based and hosted platform that enables businesses of all sizes to establish their branding and sell in multiple places.
Of course, when you’re trying to put together a long-term Shopify stock price prediction 2030, it’s important to consider what has happened to the company in recent years.
The good news for investors is that the stock has risen almost 51% over the past year to $80.88, as the market closed on October 7, 2024.
However, it hasn’t all been an upward trajectory. In fact, the stock price was trading at just over $90 in early February before sinking to around $52 in August.
However, the better-than-expected second-quarter results have seen the stock price soar more than 50% from early August to the beginning of October 2024.
Over the past 52 weeks, the stock price has fluctuated between $45.50 and $91.57. This is way off its all-time high closing price of $169.06, which it achieved on November 19, 2021.
Latest Shopify News: Second Quarter Results
The biggest recent boost to the Shopify stock price has been the better-than-expected second-quarter results, which were published in early August 2024.
The company revealed that revenue increased 21% year-over-year to $2 billion, which translates into 25% growth after adjusting for the sale of its logistics business.
Monthly recurring revenue, as of June 30, 2024, increased 25% to $169 million, which was driven by growth in merchants. Gross profit, meanwhile, rose 25% to $1 billion.
According to Jeff Hoffmeister, Shopify’s chief financial officer, the company achieved strong revenue and gross profit growth despite a mixed consumer spending environment.
“Our results underscore our commitment to providing exceptional value to our merchants through focused operating execution and efficiency,” he said.
Positive Third Quarter Outlook
The upbeat outlook for the third quarter gave the shares a boost on the day, which is a trend that has continued over the past couple of months.
Shopify predicted that revenue was to grow at a low-to-mid twenties percentage rate on a year-over-year basis.
It also believes that the gross margin will be higher by approximately 50 basis points compared to the second quarter of 2024.
In a statement, Shopify president Harley Finkelstein insisted that the company was “rapidly strengthening its position” as a leading enabler of global commerce and entrepreneurship.
He said: “More and more merchants across the world are putting their trust in Shopify’s unified commerce operating system to fuel growth and simplify complex operations. We’re fully committed to executing our growth strategies and delivering immense value to our merchants for years to come.”
Shopify Stock Forecast: What Do Analysts Think?
So, what are the Shopify stock predictions of analysts?
Success in Attracting Enterprise Customers
Dan Romanoff, senior equity analyst at Morningstar, recently increased his fair value Shopify price target from $72 to $80.
In his latest Shopify stock outlook, he explained that the upgrade was due to the company’s strong recent results and better-than-expected third-quarter guidance.
“Unlike the last couple of quarters, management delivered on cost containment and strong margins,” he wrote. “We continue to believe that Shopify is well positioned as a leader in e-commerce and has a variety of irons in the fire to sustain durable growth.”
Romanoff believes Shopify should build on its success in attracting larger brands to the platform, particularly given recently launched features such as Markets Pro and Shopify Magic.
“Enterprise customers are increasingly adopting Shopify Payments, which is not something we would have expected several years ago,” he pointed out.
After expanding marketing expenses over the last couple of quarters, the management team has now delivered more of a balance between growth and margins.
“We see margin strength in the quarter as a result of better revenue, more measured investments, the impact of price increases, and the disposition of the logistics business,” said Romanoff. “Free cash flow was similarly impressive again.”
Long-Term Potential
Danni Hewson, head of financial analysis at AJ Bell, believes the reaction to its most recent results illustrates the longer-term potential. She said:
“Shares have skyrocketed after the e-commerce platform beat earnings expectations. New tools to help merchants succeed have drawn more users to its platform, with an increasing number of users spending on extras being a trend management expects to continue.”
Hewson pointed out that Shopify has committed to keeping the business lean while also helping customers do the same via technological innovations.
“Finding any edge is always a boon, but it’s a downright necessity when times are tough and customers are wary,” she added.
Competitive Edge & Distinctive Culture
According to Gary Robinson, co-manager of Baillie Gifford US Growth Trust, big tech names have become reliable compounders over the past decade. He said:
“We’re looking for exceptional growth companies that are addressing large markets, have the ability to build a competitive edge, and possess distinctive cultures.”
He particularly favors those with what he describes as the “special sauce” required.
“Opportunities abound across various sectors,” he added. “For example, in the shift to e-commerce, companies like Amazon and Shopify are leading the way.”
Powerhouse for 10% of Online Shopping in the US
Matt Britzman, senior equity analyst at Hargreaves Lansdown, branded Shopify a “commerce powerhouse” that provides internet infrastructure for businesses to operate.
He said:
“Its critical role means it’s involved in powering 10% of online shopping in the US alone. Its platform simplifies the complex world of online retail, offering a range of tools for businesses of all sizes to create and manage their online shops.”
Although the company has performed well and kept a “tight grip on costs,” there are potential external factors that may influence its outlook, according to Britzman.
“While Shopify boasts large clients like Gymshark and Netflix, its typical customers are small and medium-sized businesses that tend to be more susceptible to the health of the broader economy,” he said.
Shopify Stock Predictions 2024, 2025 & 2030: Where Will the Price Go?
The next stage of our Shopify share price forecast looks at what’s likely to happen to the SHOP stock price over the coming year. Is Shopify a buy, hold, or sell?
The stock is currently rated a ‘moderate buy‘ according to the views of 41 Wall Street analysts compiled by MarketBeat as of October 8, 2024
While 25 have ‘buy’ recommendations in place, 15 see the stock as a ‘hold’ and one even believes it’s a ‘sell’.
- Their consensus Shopify stock prediction 2025 is for the price to slip 3.19% to $78.38 over the coming year, although opinions are divided.
- The highest Shopify future stock price prediction was $110, while the lowest was $50.
Here are the latest Shopify stock expectations of various analysts to give you a flavor of how the company is currently seen in the market.
According to the algorithmic SHOP stock forecast of Wallet Investor, the price could hit $99 over the coming year. This is 22% above the $80.88 closing price on October 7, 2024.
How about a Shopify stock long-term forecast?
Analysts don’t generally want to look too far into the future, but Wallet Investor’s five-year forecast puts SHOP at $172.97, which is around 114% above the current level.
Meanwhile, the Shopify stock forecast 2030 from Coincodex puts the price at $1,743.43 by January 2030.
Of course, there are no guarantees that any of these forecasts will be accurate. Numerous factors can influence prices daily. That’s why it’s important to conduct your own fundamental and technical analysis before making any investment decisions.
The Bottom Line: Should I Invest in Shopify?
So, what is the conclusion of our long-term Shopify stock forecast? There is no doubt that the last few months have been enjoyable for SHOP investors.
The stock price has risen 55% in the two months since the beginning of August on the back of strong quarterly results and better-than-expected predictions.
However, the problem is that much of the good news could already be priced in, which would suggest it’s unlikely that we’ll see a repeat of the recent hike.
In fact, the consensus Shopify stock projections of analysts is that we could see the SHOP valuation slip slightly over the coming year. The economic backdrop may also play a part.
The view is that if the company can continue to keep a grip on its costs, while expanding customer numbers then its longer-term prospects look attractive.
Do your own research and always remember your investment decision depends on your attitude to risk, your expertise in the stock market, the spread of your portfolio, and how comfortable you feel about losing money.
The information in this article does not constitute investment advice and is meant for informational purposes only.
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References
- Shopify – 9 Year Stock Price History | SHOP | MacroTrends (MacroTrends)
- Shopify Announces Second-Quarter 2024 Financial Results (Shopify)
- Shopify (SHOP) Stock Forecast and Price Target 2024 (MarketBeat)
- Shopify Stock Forecast: up to 99.234 USD! – SHOP Stock Price Prediction, Long-Term & Short-Term Share Revenue Prognosis with Smart Technical Analysis (Wallet Investor)
