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."

Sign up for Kiplinger’s Free E-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.
-
Ask the Editor — Tax Questions on Inherited IRAs
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the rules on inheriting IRAs.
-
I Asked Experts When It's Worth Splurging on Beauty and Skincare — and When You Can Save
Smart Shopping Experts agree that while you don't have to spend three figures on your products, some higher-priced items have value.
-
Recent Market Volatility Offers Valuable Lessons for Investors
Stocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Retiring Early? This Strategy Cuts Your Income Tax to Zero
When retiring early, married couples can use this little-known (and legitimate) strategy to take a six-figure income every year — tax-free.
-
Ditch the Golf Shoes: Your Retirement Needs a Side Gig
A side gig in retirement can help combat boredom, loneliness and the threat of inflation eroding your savings. And the earlier you start planning, the better.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet Spot
Converting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)
If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on Vacation
Here are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence Day
The resilience trade continues to work, even for sectors and stocks with specific uncertainties.