Shopify Stock Surges Ahead of Q3 Earnings: What to Expect

Shopify Inc. (SHOP) is set to announce its third-quarter earnings on November 12, and the market is anticipating strong performance from the e-commerce giant. The company’s stock has been on a significant upward trend, reaching a 52-week high of $92.16 before closing at $89.99 on the eve of the earnings report, marking a 3.29% gain for the day.

Analysts expect Shopify to report earnings per share (EPS) of $0.27, representing a 12.5% increase from the same quarter last year. Revenue is projected to grow by approximately 23% to $2.11 billion, reflecting the company’s continued strong financial performance despite macroeconomic challenges.

Shopify has a history of exceeding earnings expectations, having beaten analyst estimates for eight consecutive quarters. The company’s Q2 performance was particularly impressive, with revenue growing 21% to $2 billion and adjusted EPS jumping to $0.26 from $0.14 in the prior-year quarter.

The bullish sentiment around Shopify stock is supported by its technical indicators. The stock has surged past its key moving averages, indicating a strong bullish trend. The MACD’s positive reading and the stock’s position above its five-, 20-, and 50-day exponential moving averages further underscore the bullish momentum, although the high RSI suggests the stock might be nearing overbought territory.

Analysts remain optimistic about Shopify’s future. Citi analyst Tyler Radke has reaffirmed a Buy rating with a price target of $103, citing the company’s strong gross merchandise volume (GMV) and consistent revenue growth. Benchmark analyst Mark Zgutowicz expects heightened marketing spend to support sequential Q3 and Q4 monthly recurring revenue (MRR) growth, although he maintains a Hold rating due to valuation concerns.

The consensus analyst rating on Shopify stock is a Moderate Buy, with an average price target of $79.08, implying about 13% upside potential. This positive outlook is reinforced by Shopify’s robust revenue growth over the past year and its strategic focus on strengthening its Enterprise and international businesses).