Shopify Inc. (SHOP) continues to lead the e-commerce sector, with analysts maintaining a broadly optimistic outlook for 2025. The Ottawa-based company posted impressive financials, including a 31% year-over-year revenue increase and sustained double-digit free cash flow margins. After exiting the logistics business, Shopify refocused on its core software offerings—streamlining operations and boosting profitability. As a result, millions of merchants now rely on its platform for online sales, payments, marketing, and point-of-sale tools.

Shopify posted impressive results for the second quarter of 2025. To start, revenue rose 31% year-over-year, reaching $2.68 billion and beating forecasts by over $130 million. Next, net income jumped to $906 million, while earnings per share hit $0.35—well above expectations. In addition, gross merchandise volume climbed 29%, totaling $87.8 billion. As a result, free cash flow grew to $422 million, supported by a solid 16% margin. Thanks to strong demand for AI-powered tools and global merchant expansion, Shopify raised its Q3 outlook. Looking ahead, the company expects revenue growth in the mid-to-high twenties and continued margin strength. In turn, the stock surged more than 20%, showing strong investor confidence and confirming Shopify’s leadership in e-commerce

Meanwhile, analysts express cautious confidence. According to MarketBeat, 43 Wall Street analysts rate SHOP a “Moderate Buy,” with 24 buy ratings, 18 hold, and only 1 sell. The average price target stands at $148.51, reflecting Shopify’s consistent growth and expanding global merchant base. Although some warn of rising competition and macroeconomic uncertainty, most agree that Shopify’s innovation and operational discipline support long-term success.

Elliott Wave Outlook: SHOP Daily Chart April 2025

In April, we marked wave III’s completion at 129.38, followed by wave IV bottoming at 69.84. From this inflection point, our forecast anticipated a bullish continuation toward the 143.49–154.61 zone. This target aimed to complete wave V of (I), signaling potential resistance. However, price action broke through, challenging the assumption of wave (II) and confirming bullish control.

If you’re eager to dive deeper into Elliott Wave Theory and learn how its principles apply to market forecasting, you might find these resources helpful: Elliott Wave Education and Elliott Wave Theory.

Elliott Wave Outlook: SHOP Daily Chart August 2025

In this Elliott Wave update, Shopify continues its rally, forming a clear impulsive structure. The earnings gap met resistance near 154.61, which we’ve labeled wave 3 of ((3)). Therefore, we expect further upside through waves 4s and 5s, until complete wave ((5)) of V. This move would finalize wave V of (I), setting the stage for a new correction. Ideally, wave V of (I) should end above 166.30. We do not like selling, just look for buying opportunities.

Transform Your Trading with Elliott Wave Forecast!

Ready to take control of your trading journey? At Elliott Wave Forecast, we provide the tools you need to stay ahead in the market:

✅ Blue Boxes: Stay ahead in the market with fresh 1-hour charts updated four times daily, daily 4-hour charts on 78 instruments, and precise Blue Box zones that highlight high-probability trade setups based on sequences and cycles.

✅ Live Sessions: Join our daily live discussions and stay on the right side of the market.

✅ Real-Time Guidance: Get your questions answered in our interactive chat room with expert moderators.

🔥 Special Offer: Start your journey with a 14-day trial for only $0.99. Gain access to exclusive forecasts and Blue Box trade setups. No risks, cancel anytime by reaching out to us at support@elliottwave-forecast.com.

💡 Don’t wait! Elevate your trading game now. Trial us at: 🌐 elliottwave-forecast.com

Shopify Inc. is a Canadian multinational e-commerce company in Ottawa, Ontario. Shopify (SHOP) is the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. The Shopify platform offers online retailers a suite of services including payments, marketing, shipping and customer engagement tools.

Experts hold varied perspectives on Shopify (SHOP) stock for 2025. On one hand, some analysts recommend a moderate buy rating, citing a consensus price target of $120.94, which represents significant potential upside. Moreover, they emphasize Shopify’s recovery from earlier missteps, particularly its decision to sell the Shopify Fulfillment Network. This move, in turn, allowed the company to refocus and achieve profitability.

On the other hand, many believe that Shopify’s success will ultimately hinge on several critical factors. For instance, the continued growth of the e-commerce industry will play a pivotal role in its performance. Additionally, Shopify’s ability to innovate while maintaining efficient cost management will be key to sustaining its momentum. Despite the optimism, some caution remains, as market dynamics could still present challenges for the stock.

SHOP Elliott Wave View:

Shopify’s price movement within the Elliott Wave framework tells an engaging story. The Grand Supercycle ended in July 2021, completing wave ((I)). Afterward, the market transitioned into a flat corrective phase, marking the beginning of wave ((II)).

The first phase of this correction saw a three-wave decline, finishing at 128.46, which was wave (a). The market then rebounded above 164.88 in three additional waves, signaling a flat correction and culminating in wave (b) at 176.49. From there, Shopify’s price executed a flawless impulsive wave downward, reaching a low of 23.75. This move completed wave (c) and also marked the conclusion of wave ((II)).

If you’re eager to dive deeper into Elliott Wave Theory and learn how its principles apply to market forecasting, you might find these resources helpful: Elliott Wave Education and Elliott Wave Theory.

SHOP Daily Chart November 2024

In the chart at the time, the market broke the 56.31 low, invalidating the previous view. However, it did not break the 45.50 wave (II) low. As a result, wave II formed a double correction structure, which ended at the 48.56 low. The market then bounced, completing wave ((1)) at 84.37, followed by a pullback to 65.86, which marked the completion of the wave ((2)) correction.

Afterward, Shopify continued its rally, breaking the wave I high and indicating that wave III was underway. The structure resembled an impulse and appeared poised to move higher until the completion of wave III. At that time, the best strategy was to buy dips following a 3, 7, or 11 swings correction.

SHOP Daily Chart April 2025

In this latest update, we observed that Shopify (SHOP) completed waves ((3)), ((4)), and ((5)), marking the end of wave III. However, the correction was notably strong, entering the area of wave I. This invalidated the initial idea of a nest (I), (II), I, II. Instead, the structure aligned better with a leading diagonal labeled as wave (I).

Consequently, we identified wave III ended at the 129.38 high and wave IV at the 69.84 low. From this point, we expect that Shopify’s stock would continue rising, aiming for the area between 143.49 and 154.61. This zone would complete a cycle and wave V of (I). In this region, the market was expected to face rejection, initiating the corrective wave (II).

For now, maintaining a bullish outlook is essential, as long as the market does not break below the 69.84 low. Let’s see what the market brings us. Trade Smart!

 

Transform Your Trading with Elliott Wave Forecast!

Ready to take control of your trading journey? At Elliott Wave Forecast, we provide the tools you need to stay ahead in the market:

✅ Hourly Updates: Fresh 1-hour charts updated 4 times a day and 4-hour charts updated daily for 78 instruments.

✅ Blue Boxes: High-frequency trading zones, calculated using sequences, cycles, and extensions. These areas pinpoint ideal setups for smarter trades.

✅ Live Sessions: Join our daily live discussions and stay on the right side of the market.

✅ Real-Time Guidance: Get your questions answered in our interactive chat room with expert moderators.

 

🔥 Exclusive Offer: Start your journey with a 14-day trial for only $9.99. Gain access to exclusive forecasts and Blue Box trade setups. No risks, cancel anytime by reaching out to us at support@elliottwave-forecast.com.

💡 Don’t wait! Elevate your trading game now. Trial us at: 🌐 elliottwave-forecast.com