1 Wall Street Analyst Thinks Shopify Is Going to $150. Is It a Buy?

Shopify (NYSE: SHOP) has dominated e-commerce software for at least a decade, and the company's latest report showed that it still has no sign of slowing down even after years of monster growth.

In the fourth quarter, Shopify's gross merchandise value (GMV) rose 26% to $94.5 billion, and revenue jumped 31% to $2.81 billion, ahead of the consensus at $2.73 billion.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Adjusted earnings per share rose from $0.34 to $0.44, topping estimates by a penny.

Shopify is executing across its business. After putting the failed Deliverr acquisition behind it, it's gotten to back to its core strength in e-commerce, innovating, tapping into new markets, and bringing on customers big and small. Its payments revenue stream is growing fast as well.

Wall Street has taken notice, with several analysts raising their price targets on the stock after its earnings report. However, one analyst, anticipating strong results, upgraded the stock to a buy ahead of the report.

Image source: Getty Images.

Benchmark calls Shopify a buy

Last Monday, immediately before Shopify's latest release, Benchmark raised its rating on the e-commerce stock from a hold to a buy. Analyst Mark Zgutowicz credited Shopify's strong performance to Shopify Audiences, which is thus far only available to Plus merchants in North America that use Shopify Payments. Shopify Audiences is a marketing tool that helps merchants find new customers and improve the performance of their ads.

Zgutowicz gave the stock a price target of $150, representing a 25% upside from the price at the time of the upgrade.

Is Shopify a buy?

Shopify's revenue has now grown by 25% or faster for seven straight quarters, excluding its foray into logistics. Its guidance indicates more good times ahead, as it's calling for revenue growth in the mid-20%s for 2025.

Shopify stock might be expensive, but the company is the clear leader in a massive e-commerce market. It still has a lot of room to grow both GMV and payments volume, and to earn revenue from new services and features. The stock is still a buy.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $361,466!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,349!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $558,625!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 3, 2025

Jeremy Bowman has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.