Shopify Stock (SHOP) Set for Nasdaq 100 Inclusion Following Strong Q1 Earnings

Shopify (SHOP) is on track to make a big leap this month as it joins the Nasdaq 100 (NDX) and the Nasdaq-100 Equal Weighted Index (NDXE), effective before the market opens on Monday, May 19, 2025. The e-commerce platform will replace software firm MongoDB, Inc. (MDB) in both indexes.

The announcement follows Shopify’s Q1 results, which helped affirm its growth momentum. Benchmark’s top analyst, Mark Zgutowicz, reaffirmed a ‘Buy’ rating on the stock, highlighting its continued market share gains despite a volatile macro backdrop.

As a reminder, the NDX tracks the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. The addition to this index exposes Shopify to a huge influx of institutional capital.

Nasdaq 100 Inclusion Brings Massive Attention

What does this mean for Shopify? Well, the company will now rank among the 100 largest firms on the Nasdaq by market cap, which is no small deal.

Already up 56% year-to-date, SHOP stock could see further price upside as its inclusion boosts visibility and attracts institutional interest. Index-tracking ETFs, mutual funds, and other investment vehicles will now be required to purchase Shopify shares, increasing demand and potentially driving the stock price higher.

Not only that, but Shopify is also drawing wider market attention and gaining recognition, as its addition to multiple Nasdaq indexes places it among some of the most prominent tech names.

Zgutowicz Says Shopify’s Share Gains Are Its “Strongest Sail”

Shopify delivered a decent first-quarter performance, reporting revenue of $2.36 billion and earnings of 26 cents per share, matching Wall Street’s expectations and slightly beating revenue forecasts. However, gross merchandise volume (GMV) came in at $74.75 billion, up 22% year-over-year but below analysts’ $76.09 billion estimate.

Still, company executives remained confident. On the earnings call, they assured investors that recently announced tariffs are unlikely to have a “meaningful impact” on GMV, thanks to Shopify’s broad international reach and diverse merchant base.

Benchmark’s Mark Zgutowicz kept his Buy rating on the stock, calling the company’s Q1 GMV growth of 24.8% and Q2 guidance “nothing short of impressive,” especially in today’s uncertain macro environment. He highlighted Shopify’s share gains in the first quarter, particularly in the U.S. e-commerce space, as its “strongest sail,” estimating a ~200 bps increase from last year.

While such gains can fluctuate, Zgutowicz believes enterprise adoption is becoming a key engine of growth. He also pointed to strength across categories like apparel and health and beauty as encouraging signs for Shopify’s business momentum.

Is SHOP a Good Stock to Buy Now?

Overall, Wall Street has a Moderate Buy rating on SHOP stock, based on 24 Buys and 12 Holds assigned in the last three months. The average Shopify price target is $117.42, which implies a 27.95% upside from the current levels.

See more SHOP analyst ratings