Shopify Inc. saw its shares advance 5.6% in after-hours trading on Monday, reaching $118.40, following a volatile regular session where the stock traded between $111.09 and $122.90. This movement comes ahead of the company's scheduled release of its fourth-quarter and full-year 2025 results before the market opens on Wednesday, February 11.
Analysts Turn Bullish
Citizens maintained its Market Outperform rating on Shopify with a $200 price target, anticipating the e-commerce platform will deliver a "beat-and-raise" quarter. The firm highlighted Shopify's rapid progress in enabling AI-powered commerce compared to rivals. Separately, MoffettNathanson upgraded the stock from Neutral to Buy and increased its price target to $150 from $122.
Investors are closely monitoring key metrics, including Gross Merchandise Volume (GMV) and margin trends across the company's payments and merchant services segments. Analysts have noted potential positives from foreign exchange rates and improved advertising efficiency.
Elevated Expectations and Scrutiny
Despite the recent positive sentiment, Shopify shares have faced pressure over the past week, with some analysts cautioning about elevated valuations even after the pullback. The upcoming earnings call, scheduled for 8:30 a.m. ET on Wednesday, is expected to draw significant scrutiny for management's commentary on 2026 demand, merchant ad spending trends, and adoption by larger retailers.
The stock's after-hours gain suggests traders are positioning for a strong report, balancing optimism over the analyst upgrades against concerns about the company's growth-stock premium and potential margin pressures as it expands its merchant solutions offerings.
