Shopify Inc. (NASDAQ:SHOP) is included among the Top 10 Reddit Stocks Set to Soar.
On April 6, Wells Fargo lowered its price recommendation on Shopify Inc. (NASDAQ:SHOP) to $166 from $191. He reiterated his overweight rating on the stock. The company said it did not expect the launch of Agentic trading to be quick or easy. He acknowledged that he may have been “a little optimistic” about how quickly the adoption would occur. Still, he remains confident that agent commerce will gain traction over time, and Shopify will be positioned to benefit.
During the fourth-quarter 2025 earnings call, Chief Financial Officer Jeff Hoffmeister said the company expected first-quarter revenue growth in the mid-30s year-over-year, broadly in line with the fourth quarter of 2025. He noted that the same key drivers from 2025 are likely to continue supporting growth. It also said gross profit dollars were expected to increase in the mid-20s. The year-over-year change in gross margins compared to the first quarter of 2025 would reflect a continued shift between Merchant Solutions and Subscription Solutions. He added that the gap in growth rates between the two segments should narrow compared to 2025, and payments will remain strong.
As for expenses, Hoffmeister said first-quarter operating expenses were expected to account for 37% to 38% of revenue. He noted that this would mark an improvement of a couple of percentage points from the first quarter of 2025, which itself had already decreased by almost 6 points from the first quarter of 2024. As for cash flow, he said the free cash flow margin for the first quarter was expected to be between 10 and 15, slightly below the level reported in the first quarter of 2025.
Shopify Inc. (NASDAQ:SHOP) is a global commerce company based in Canada. It provides the infrastructure that businesses use to start, grow and manage retail operations of any size. Its platform supports commerce online, in stores and other channels, with the goal of offering a consistent shopping experience to consumers.
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