Should I Buy SHOP Stock in 2026?
Data-driven analysis and honest assessment for Shopify Inc
Current Price: $120.73P/E: 134.0
Decision Score
Weak
Based on 6 fundamental factors
Score Breakdown:
Very high P/E of 134.0 suggests overvaluation
Declining -0%
Thin margins (0% net)
Financial health data limited
Low FCF yield of 0.8%
No recent insider activity
Key Investment Metrics
Current Price
$120.73
P/E Ratio
133.98
Revenue Growth
0.3%
Profit Margin
0.1%
Market Cap
$164.4B
Dividend Yield
None
How SHOP Compares to Competitors
Understanding how SHOP stacks up against peers helps inform your investment decision.
How SHOP Compares to Peers
Upcoming Events for SHOP
+5 Reasons TO Buy SHOP
1. Large-cap stability and market leadership
moderateWith market cap over $100B, this company has established leadership and resources to weather cycles.
-5 Reasons NOT to Buy SHOP
1. Expensive valuation at 134x earnings
high riskP/E of 134 is significantly above averages. High expectations leave little room for disappointment.
2. Thin profit margins of 0.1%
high riskLow margins provide little cushion against cost increases or pricing pressure.
3. Minimal revenue growth
low riskGrowth of 0.3% barely keeps pace with inflation.
4. Low free cash flow yield of 0.8%
low riskLimited cash generation means most value comes from future growth expectations.
Who Should Buy SHOP?
Investment Profile
Risk Level
High
Recommended Holding Period
3-5 years
Best For:
- ✓
Momentum Traders
High-growth profile attracts momentum
Not Suitable For:
- ✗
Growth Investors
Limited 0% growth may disappoint
- ✗
Value Investors
Premium P/E of 134 doesn't fit value criteria
- ✗
Income-Focused Retirees
No dividend paid
- ✗
Risk-Averse Investors
High risk may cause uncomfortable volatility
Consider These Alternatives
If you're interested in SHOP, compare these Information Technology peers:
Pro tip: Compare SHOP directly with competitors using our comparison tool to see which stock better fits your criteria.
Get the Full Picture
Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for SHOP
Frequently Asked Questions
What is SHOP stock price today?
SHOP (Shopify Inc) stock is trading at $120.73 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).
Is SHOP stock going up or down today?
SHOP stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.
Should I buy SHOP stock now?
The decision to buy SHOP depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.
Is SHOP a buy, hold, or sell right now?
Our AI-powered analysis provides buy/hold/sell recommendations for SHOP based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.
Is SHOP stock overvalued or undervalued?
SHOP currently trades at a P/E ratio of 133.98, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if SHOP is fairly priced.
What is SHOP's P/E ratio?
SHOP has a price-to-earnings (P/E) ratio of 133.98, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.
What is SHOP's market cap?
SHOP (Shopify Inc) has a market capitalization of $164.36 billion, making it a mid-cap stock.
What is SHOP's price to book ratio?
SHOP trades at a price-to-book (P/B) ratio of 16.22, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.
Deep Dive Analysis
Explore comprehensive analysis tools to make an informed decision about Shopify Inc
Full Stock Analysis
Complete SHOP overview with charts and data
Is SHOP Undervalued?
DCF valuation and intrinsic value analysis
Dividend Analysis
Yield, payout ratio, and dividend history
Growth Analysis
Revenue, earnings, and expansion metrics
Financial Health
Debt, liquidity, and balance sheet strength
Price Prediction
2026 forecast and price targets
Stock Forecast
12-month price forecast and analyst targets
Earnings Date
Next earnings date and historical results
Compare Before You Buy
See how SHOP stacks up against its competitors
Similar Investment Decisions
Explore investment analyses for stocks similar to Shopify Inc
Complete SHOP Analysis
Compare SHOP With
Disclaimer
This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.