Shopify Inc. (SHOP) shares closed at $114.97 on October 29, 36.9% lower than its 52-week high of $182.19. Year-to-date, shares have dropped 28.6%, contrasting sharply with the broader Zacks Computer and Technology sector’s decline of just 1.4%. Analysts highlight that Shopify currently trades at a forward 12-month price/sales ratio of 9.71, significantly higher than sector peers like Amazon (3.16), Wix.com (2.16), and Commerce.com (0.90).
For 2026, the Zacks Consensus Estimate projects Shopify’s earnings at $1.78 per share, with anticipated revenue of $14.55 billion, representing year-over-year growth of 52.14% and 25.87%, respectively. However, the company faces challenges including stiff competition from Amazon, gross margin headwinds, and a tough economic environment, which may hinder short-term growth.
Shopify is expanding its international reach and enhancing its platform with AI-driven tools, which are viewed positively for long-term growth potential. The company’s Monthly Recurring Revenues (MRR) rose 15% in Q4 2025, with Plus merchants contributing roughly 34% of MRR, indicating robust engagement and loyalty among its subscriber base.
