Shopify Stock Is Choppy After Forecasting Slower Revenue Growth
Shopify stock is struggling for direction Tuesday as investors weigh the e-commerce tech company's Q4 earnings results against its Q1 revenue guidance.


Shopify (SHOP) stock opened higher Tuesday after the e-commerce technology company reported a top-line beat and in-line earnings for its fourth quarter. However, shares were last seen in negative territory as Wall Street weighs SHOP's revenue forecast.
In the three months ending December 31, Shopify's revenue increased 31.2% year over year to $2.8 billion. Its earnings per share (EPS) rose 26.5% from the year-ago period to 43 cents.
"We are thrilled with our strong performance in Q4, wrapping up an outstanding 2024. Q4 marks our seventh consecutive quarter of 25% or greater revenue growth when excluding logistics," said Shopify Chief Financial Officer Jeff Hoffmeister in a statement. "These consistent results are a testament to our strategic initiatives and operational discipline, positioning us well for continued success and growth in the future."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $2.7 billion and earnings of 43 cents per share, according to Investor's Business Daily.
Shopify also said gross merchandise volume (GMV) increased 25.7% year over year to $94.5 billion, topping the $93 billion in GMV analysts were calling for.
For the first quarter, Shopify said it expects revenue to be up in the mid-twenties percentage rate compared to the year-ago period. While this is in line with the 25% growth rate Wall Street is expecting, it is slower than what was seen in Q4, which could be the cause of today's price struggles.
"Heading into 2025, we are committed to making entrepreneurship more common and further establishing Shopify as the go-to commerce platform for businesses of all sizes," said Shopify President Harley Finkelstein in a statement.
Is Shopify stock a buy, sell or hold?
Shopify has done well on the price charts over the long term. Indeed, SHOP is up 32% in the past 12 months vs the S&P 500's total return (price change plus dividends) of 22%. And Wall Street is bullish on the tech stock. According to S&P Global Market Intelligence, the consensus recommendation among analysts it tracks is a Buy.
However, analysts' price targets have struggled to keep up with large-cap stock's run higher. Currently, the average price target of $122.83 is right around where the stock trades today.
Financial services firm Oppenheimer is one of those firms with an Outperform rating (equivalent to a Buy) on SHOP stock, along with a $130 price target.
"Shopify has established itself as a fast-growing, pure-play SaaS [software as a service] commerce application vendor that is taking share of retailer technology spend," wrote Oppenheimer analyst Ken Wong in a November 12 note. "We think Shopify is well-led by a visionary and respected management team and are confident in its multi-year growth potential."
Wong adds that SHOP "is a generational technology disruptor in a large and underpenetrated digital commerce opportunity."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?
Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market Today
The lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.