Recent News
December 10, 2025 — Shopify unveiled “Agentic Storefronts” and Winter ’26 product updates, highlighting tighter integrations with large language models and tools for AI channel attribution. December 2, 2025 — Shopify reported record Black Friday–Cyber Monday merchant sales of $14.6 billion, with strong Shop Pay adoption and cross‑border order activity. These items emphasize product rollout cadence and meaningful holiday operational throughput.
Technical Analysis
ADX at 12.35 registers below 20, indicating no established trend strength; that lack of trend reduces conviction for sustained directional moves versus range trades.
DI+ at 25.73 shows a dip & reversal, which reads as a bullish directional signal; DI‑ at 21.97 trending lower reinforces bullish directional pressure from directional indicators.
MACD sits at 1.55 while the signal line reads 0.59; the MACD currently trades above its signal line, which constitutes a bullish cross, yet the MACD_trend shows a peak & reversal, indicating bearish momentum has started to reassert itself.
MRO at 17.74 registers positive, indicating price sits above the model target and thus carries potential downward pressure toward fair value, a dynamic that tempers upside given stretched valuation.
RSI at 52.54 with a peak & reversal pattern points to recent loss of upward momentum and potential for range contraction or modest pullback rather than sustained extension.
Short‑term EMAs and averages show price near the 20‑day and 50‑day levels (price close $159.85, 20‑day avg $160.03, 50‑day avg $159.61) while remaining well above the 200‑day average ($127.11); that configuration supports longer‑term bullish bias but signals short‑term consolidation after a local peak (12‑day EMA trend: peak & reversal).
Ichimoku values place the price inside the cloud (Senkou A $164.60, Senkou B $157.79), suggesting consolidation without clear directional conviction from cloud dynamics.
Bollinger structure shows a narrow 20‑day band (upper ≈ $165, lower ≈ $155) and recent closes near the band center; the super trend lower around $149 provides a defined near support level. Elevated short‑term beta (42‑day 2.93) implies amplification of both rallies and pullbacks, increasing the probability of volatile swings around current levels.
Fundamental Analysis
Profitability: Operating (EBIT) margin reads 17.26%, up 24.71% QoQ and up 31.89% YoY, a material improvement in operating leverage. That EBIT margin sits above the industry peer mean of -2.46% and above the industry peer median of 0.85%, indicating comparatively strong core profitability among peers.
Revenue and earnings: Total revenue $2,844,000,000 with YoY revenue growth of 6.96% but a QoQ contraction of -54.87%; EPS matched consensus at $0.34 with an EPS surprise of roughly 0.61%. Reported earnings growth displays large declines on both quarterly and yearly comparisons (earnings growth QoQ -98.28%, YoY -108.25%), reflecting lumpy period‑to‑period comparisons that require context from seasonal and one‑time items.
Cash generation and liquidity: Operating cash flow $513,000,000 and free cash flow $507,000,000, with free cash flow yield around 0.26%. Cash and short‑term investments total $6.349B and the cash ratio sits at 286.9%, delivering substantial near‑term liquidity. Cash conversion cycle at -57.7 days compares favorably with the industry peer mean of -15.64 days, signaling rapid cash conversion relative to payables and receivables dynamics.
Leverage and coverage: Total debt $1.115B, debt‑to‑assets roughly 7.41% and debt‑to‑equity around 8.91%, both materially lower than the industry peer mean debt ratios; debt to EBITDA near 2.23x while interest coverage approximates 1.01x, indicating modest leverage but tighter interest coverage relative to highly profitable comparators.
Returns: Return on equity about 2.11% and return on assets about 1.78%; those returns trail highly profitable software incumbents but pair with strong operating margin improvement and substantial cash holdings.
Valuation metrics: Trailing P/E 446.5 and forward P/E ~294.3, P/B roughly 15.79, and P/S about 69.47. Free cash flow yield at roughly 0.26% contrasts with enterprise multiples that suggest market expectations for prolonged high margin growth. WMDST values the stock as over‑valued given stretched earnings multiples and muted cash‑flow yield relative to market expectations.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 1.5 B |
| Operating Cash Flow | $ 513.0 M | |
| Capital Expenditures | $ -6.00 M | |
| Change In Working Capital | $ -70.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 872.0 M | |
| End Period Cash Flow | $ 2.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.8 B | |
| Forward Revenue | $ 1.6 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.5 B | |
| Depreciation | $ 8.0 M | |
| Depreciation and Amortization | $ 8.0 M | |
| Research and Development | $ 375.0 M | |
| Total Operating Expenses | $ 2.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.4 B | |
| EBITDA | $ 499.0 M | |
| EBIT | $ 491.0 M | |
| Operating Income | $ 491.0 M | |
| Interest Income | $ 81.0 M | |
| Interest Expense | — | |
| Net Interest Income | $ 81.0 M | |
| Income Before Tax | $ 308.0 M | |
| Tax Provision | $ 44.0 M | |
| Tax Rate | 14.286 % | |
| Net Income | $ 264.0 M | |
| Net Income From Continuing Operations | $ 264.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.34 | |
| EPS Actual | $ 0.34 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.61 % | |
| Forward EPS | $ 0.46 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 15.0 B | |
| Intangible Assets | $ 524.0 M | |
| Net Tangible Assets | $ 12.0 B | |
| Total Current Assets | $ 8.7 B | |
| Cash and Short-Term Investments | $ 6.3 B | |
| Cash | $ 2.4 B | |
| Net Receivables | $ 79.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 23.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 974.0 M | |
| Short-Term Debt | $ 920.0 M | |
| Total Current Liabilities | $ 2.2 B | |
| Net Debt | — | |
| Total Debt | $ 1.1 B | |
| Total Liabilities | $ 2.5 B | |
| EQUITY | ||
| Total Equity | $ 12.5 B | |
| Retained Earnings | $ 2.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.61 | |
| Shares Outstanding | 1.301 B | |
| Revenue Per-Share | $ 2.19 | |
| VALUATION | Market Capitalization | $ 197.6 B |
| Enterprise Value | $ 192.3 B | |
| Enterprise Multiple | 385.429 | |
| Enterprise Multiple QoQ | -8.91 % | |
| Enterprise Multiple YoY | 17.48 % | |
| Enterprise Multiple IPRWA | SHOP: 385.429 high: 220.445 mean: -31.945 low: -109.917 median: -109.917 |
|
| EV/R | 67.626 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.202 | |
| Asset To Liability | 5.949 | |
| Debt To Capital | 0.082 | |
| Debt To Assets | 0.074 | |
| Debt To Assets QoQ | -5.216 % | |
| Debt To Assets YoY | 4978.082 % | |
| Debt To Assets IPRWA | high: 0.756 mean: 0.517 median: 0.411 SHOP: 0.074 low: 0.008 |
|
| Debt To Equity | 0.089 | |
| Debt To Equity QoQ | -5.141 % | |
| Debt To Equity YoY | 4906.742 % | |
| Debt To Equity IPRWA | high: 2.6 mean: 2.14 median: 1.681 SHOP: 0.089 low: -0.424 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 15.791 | |
| Price To Book QoQ | 15.999 % | |
| Price To Book YoY | 59.221 % | |
| Price To Book IPRWA | high: 30.563 SHOP: 15.791 mean: 6.54 median: 3.934 low: -21.601 |
|
| Price To Earnings (P/E) | 446.535 | |
| Price To Earnings QoQ | 37.325 % | |
| Price To Earnings YoY | 101.181 % | |
| Price To Earnings IPRWA | SHOP: 446.535 high: 292.64 median: 177.278 mean: 162.005 low: -29.119 |
|
| PE/G Ratio | -156.295 | |
| Price To Sales (P/S) | 69.467 | |
| Price To Sales QoQ | 12.799 % | |
| Price To Sales YoY | 49.666 % | |
| Price To Sales IPRWA | SHOP: 69.467 high: 48.852 median: 19.563 mean: 18.532 low: 1.953 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 294.265 | |
| Forward PE/G | -102.998 | |
| Forward P/S | 121.887 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.286 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.192 | |
| Asset Turnover Ratio QoQ | 0.24 % | |
| Asset Turnover Ratio YoY | 5.212 % | |
| Asset Turnover Ratio IPRWA | high: 0.326 SHOP: 0.192 mean: 0.115 median: 0.099 low: 0.003 |
|
| Receivables Turnover | 38.432 | |
| Receivables Turnover Ratio QoQ | 0.383 % | |
| Receivables Turnover Ratio YoY | 195.976 % | |
| Receivables Turnover Ratio IPRWA | SHOP: 38.432 high: 9.182 mean: 2.357 median: 1.705 low: 0.008 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 2.374 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -57.72 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 149.224 median: -10.846 mean: -15.637 SHOP: -57.72 low: -374.12 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.438 | |
| CapEx To Revenue | -0.002 | |
| CapEx To Depreciation | -0.75 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 12.5 B | |
| Net Invested Capital | $ 13.4 B | |
| Invested Capital | $ 13.4 B | |
| Net Tangible Assets | $ 12.0 B | |
| Net Working Capital | $ 6.5 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.869 | |
| Current Ratio | 3.934 | |
| Current Ratio QoQ | 2.162 % | |
| Current Ratio YoY | -44.614 % | |
| Current Ratio IPRWA | SHOP: 3.934 high: 3.517 median: 2.041 mean: 1.927 low: 0.486 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.234 | |
| Cost Of Debt | 36.963 % | |
| Interest Coverage Ratio | 1.01 | |
| Interest Coverage Ratio QoQ | 32.346 % | |
| Interest Coverage Ratio YoY | 73.5 % | |
| Interest Coverage Ratio IPRWA | high: 201.364 median: 1.635 SHOP: 1.01 mean: -0.233 low: -94.349 |
|
| Operating Cash Flow Ratio | 0.178 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 60.094 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.283 % | |
| Revenue Growth | 6.119 % | |
| Revenue Growth QoQ | -54.871 % | |
| Revenue Growth YoY | 6.957 % | |
| Revenue Growth IPRWA | high: 21.619 % median: 9.703 % mean: 8.711 % SHOP: 6.119 % low: -17.736 % |
|
| Earnings Growth | -2.857 % | |
| Earnings Growth QoQ | -98.279 % | |
| Earnings Growth YoY | -108.254 % | |
| Earnings Growth IPRWA | high: 50.0 % median: 28.571 % mean: 8.561 % SHOP: -2.857 % low: -100.439 % |
|
| MARGINS | ||
| Gross Margin | 48.91 % | |
| Gross Margin QoQ | 0.675 % | |
| Gross Margin YoY | -5.417 % | |
| Gross Margin IPRWA | high: 85.696 % median: 73.406 % mean: 69.883 % SHOP: 48.91 % low: 23.163 % |
|
| EBIT Margin | 17.264 % | |
| EBIT Margin QoQ | 24.713 % | |
| EBIT Margin YoY | 31.887 % | |
| EBIT Margin IPRWA | high: 38.196 % SHOP: 17.264 % median: 0.847 % mean: -2.464 % low: -209.686 % |
|
| Return On Sales (ROS) | 17.264 % | |
| Return On Sales QoQ | 24.713 % | |
| Return On Sales YoY | 31.887 % | |
| Return On Sales IPRWA | high: 37.48 % SHOP: 17.264 % mean: -2.834 % median: -6.665 % low: -18.625 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 507.0 M | |
| Free Cash Flow Yield | 0.257 % | |
| Free Cash Flow Yield QoQ | 0.391 % | |
| Free Cash Flow Yield YoY | -38.81 % | |
| Free Cash Flow Yield IPRWA | high: 7.631 % mean: 0.373 % SHOP: 0.257 % median: 0.102 % low: -3.856 % |
|
| Free Cash Growth | 20.142 % | |
| Free Cash Growth QoQ | 23.928 % | |
| Free Cash Growth YoY | -23.78 % | |
| Free Cash Growth IPRWA | high: 145.936 % median: 110.74 % mean: 77.153 % SHOP: 20.142 % low: -186.57 % |
|
| Free Cash To Net Income | 1.92 | |
| Cash Flow Margin | 13.889 % | |
| Cash Flow To Earnings | 1.496 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.784 % | |
| Return On Assets QoQ | -72.469 % | |
| Return On Assets YoY | -74.496 % | |
| Return On Assets IPRWA | high: 7.434 % SHOP: 1.784 % median: -0.023 % mean: -0.052 % low: -33.101 % |
|
| Return On Capital Employed (ROCE) | 3.828 % | |
| Return On Equity (ROE) | 0.021 | |
| Return On Equity QoQ | -71.765 % | |
| Return On Equity YoY | -74.215 % | |
| Return On Equity IPRWA | high: 0.344 SHOP: 0.021 mean: 0.006 median: -0.001 low: -0.733 |
|
| DuPont ROE | 2.143 % | |
| Return On Invested Capital (ROIC) | 3.133 % | |
| Return On Invested Capital QoQ | 31.198 % | |
| Return On Invested Capital YoY | -156.077 % | |
| Return On Invested Capital IPRWA | high: 33.039 % SHOP: 3.133 % mean: 0.87 % median: 0.082 % low: -35.047 % |
|