Short Interest in Shopify Inc. (NASDAQ:SHOP) Drops By 27.0%

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) was the recipient of a significant decline in short interest in the month of January. As of January 30th, there was short interest totaling 8,607,150 shares, a decline of 27.0% from the January 15th total of 11,795,858 shares. Approximately 0.7% of the shares of the company are short sold. Based on an average daily trading volume, of 10,399,752 shares, the days-to-cover ratio is currently 0.8 days. Based on an average daily trading volume, of 10,399,752 shares, the days-to-cover ratio is currently 0.8 days. Approximately 0.7% of the shares of the company are short sold.

Shopify Trading Up 1.8%

Shopify stock opened at $112.70 on Friday. Shopify has a 1-year low of $69.84 and a 1-year high of $182.19. The firm has a market capitalization of $146.72 billion, a PE ratio of 121.18, a price-to-earnings-growth ratio of 3.26 and a beta of 2.83. The firm’s 50 day simple moving average is $150.31 and its 200 day simple moving average is $150.64.

Wall Street Analysts Forecast Growth

SHOP has been the subject of several research reports. Stifel Nicolaus set a $115.00 price target on Shopify and gave the stock a “hold” rating in a research note on Wednesday. TD Securities upgraded shares of Shopify from a “hold” rating to a “buy” rating and set a $159.00 target price for the company in a research report on Thursday. Benchmark reduced their target price on shares of Shopify from $195.00 to $145.00 and set a “buy” rating for the company in a research note on Tuesday. Oppenheimer restated an “outperform” rating on shares of Shopify in a research note on Monday, December 1st. Finally, Canaccord Genuity Group set a $165.00 price objective on shares of Shopify and gave the stock a “buy” rating in a report on Thursday. Thirty-one analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Shopify presently has a consensus rating of “Moderate Buy” and an average target price of $161.97.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported strong Q4 revenue and profitability metrics—revenue grew ~31% YoY to $3.67B and EPS topped estimates—supporting bullish takeaways on merchant growth and cash generation. Q4/Profitable SaaS Article
• Positive Sentiment: Analysts have moved more positive: Mizuho upgraded SHOP to “outperform” with a $150 PT, TD Securities raised to “buy” with a $159 PT, and Needham reaffirmed a $180 target—these upgrades are driving buy-side interest. Mizuho Upgrade
• Positive Sentiment: Shopify’s commerce tooling is being integrated into major AI platforms (e.g., ChatGPT/Gemini), reinforcing long?term revenue/engagement narratives tied to AI-enabled merchant services. AI Integration Article
• Neutral Sentiment: Loomis Sayles highlighted high?quality, long?growth companies including Shopify in its investor letter—positive signal for institutional interest but not an immediate catalyst. Loomis Sayles Letter
• Neutral Sentiment: Shopify announced a $2 billion buyback authorization; while buybacks can support the stock, analysts and investors are flagging execution risk and potential cash/volatility implications. Buyback Analysis
• Negative Sentiment: Several firms trimmed price targets (UBS to $145, Benchmark to $145, Wedbush/Citizens JMP trimmed targets), and Truist cut to a $110 target—these downgrades/target cuts introduce selling pressure and mixed sentiment among analysts. Price Target Moves Benchmark Cut
• Negative Sentiment: Despite revenue strength, some coverage highlighted margin strain from AI investment and mixed earnings reactions; the post?earnings pullback reflected investor concerns about valuation and near?term profitability. Margin Strain Article Post-Earnings Reaction

Hedge Funds Weigh In On Shopify

Institutional investors have recently added to or reduced their stakes in the business. Knights of Columbus Asset Advisors LLC purchased a new stake in Shopify during the third quarter valued at about $4,110,000. Principal Financial Group Inc. lifted its stake in shares of Shopify by 16.3% in the 3rd quarter. Principal Financial Group Inc. now owns 450,895 shares of the software maker’s stock valued at $67,006,000 after acquiring an additional 63,300 shares during the last quarter. Triton Financial Group Inc purchased a new stake in Shopify during the 3rd quarter valued at about $1,931,000. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Shopify by 4.4% during the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,231,257 shares of the software maker’s stock valued at $603,425,000 after acquiring an additional 218,829 shares during the period. Finally, IQ EQ FUND MANAGEMENT IRELAND Ltd grew its position in Shopify by 65.5% during the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 158,514 shares of the software maker’s stock worth $23,557,000 after acquiring an additional 62,743 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors.

About Shopify

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.