Shopify Inc. shares advanced approximately 2% on Friday, closing at $112.70 and recouping some losses sustained earlier in the week following its earnings report. The stock traded within a range of $107.43 to $113.39, with volume nearing 18.9 million shares.
Analysts Boost Ratings on AI and Valuation
TD Cowen and Mizuho Securities upgraded their ratings on Shopify this week. TD Cowen's analyst highlighted the company as essential modern e-commerce infrastructure and viewed the recent price dip as an attractive entry point. Mizuho raised its rating to outperform, citing artificial intelligence as a structural growth driver rather than a risk, and maintained a $150 price target.
ARK Investment Management, led by Cathie Wood, purchased about 114,020 Shopify shares on Thursday, a transaction valued at roughly $13.5 million.
$2 Billion Buyback Program Set to Begin
Shopify's board has authorized a share repurchase program of up to $2 billion, representing no more than 5% of its outstanding Class A subordinate voting shares. The buyback is scheduled to commence on Tuesday, February 17, with no predetermined expiration date. Repurchases may be executed on the open market or through private transactions.
The buyback follows the company's holiday-quarter earnings, where it forecast first-quarter revenue growth in the low-thirties percentage range, exceeding analyst consensus estimates. Management emphasized the growing impact of AI on commerce, noting a significant surge in AI-driven search orders to Shopify stores since early 2025.
U.S. markets are closed Monday for the Washington's Birthday holiday, with trading resuming Tuesday. Investors will watch to see if the buyback and analyst optimism can counter broader pressure on software stocks, especially as the Federal Reserve releases minutes from its late-January meeting on Wednesday.
