Shopify (SHOP) stock saw large gains on Wednesday following the release of the e-commerce company’s Q2 2025 earnings report. What investors focused on most in this report was the company’s updated guidance for Q3 2025.
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Shopify expects revenue for the quarter to rise in the mid-to-high-twenties percentage range on a year-over-year basis. It also expects gross profit dollars to increase in the low-twenties percentage range, operating expenses as a percentage of revenue to range from 38% to 39%, stock-based compensation of $130 million, and a free cash flow margin in the mid-to-high-teens.
Jeff Hoffmeister, Chief Financial Officer of Shopify, said, “Merchants of every size—from first-time founders to global brands—are choosing Shopify to grow their businesses and their success is what is driving our success.”
Shopify Stock Movement Today
Shopify stock was up 14.5% on Wednesday, following a 1.43% rally yesterday. The shares have also increased 19.44% year-to-date and 98.78% over the past 12 months.
Today’s earnings report and guidance update fueled increased interest in SHOP stock. This resulted in heavy trading of the shares, with some 5 million shares traded as of this writing. That’s closing in on the company’s three-month daily average of 7.37 million shares and will likely surpass it before the end of normal trading hours today.
Is Shopify Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Shopify is Moderate Buy, based on 21 Buy and 11 Hold ratings over the past three months. With that comes an average SHOP stock price target of $120.68, representing a potential 20.65% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
