Why Are Shopify Shares Surging On Friday?

Shopify Inc. (NASDAQ:SHOP) shares are trading higher on Friday. The Nasdaq is up 0.74% while the S&P 500 has gained 0.42%, and Technology is also in the green, helping support the move.

On Feb. 11, Shopify fiscal fourth-quarter revenue of $3.67 billion, marking a 30.6% increase year over year and topping the $3.59 billion analyst consensus estimate.

However, the e-commerce platform reported adjusted earnings of 48 cents per share, below the expected 51 cents.

Technical Analysis

Shopify is trading about 4% above its 20-day SMA, but it remains about 15% below its 100-day SMA, showing a short-term rebound inside a still-damaged intermediate trend.

Shares are up 5.34% over the past 12 months and are currently positioned closer to their 52-week high than their 52-week low.

RSI is at 44.23, which sits in neutral territory and suggests the rebound hasn't pushed momentum into "overbought" conditions.

• Key Resistance: $139.00
• Key Support: $105.00

Shopify’s Earnings Forecast and Analyst Sentiment

Looking further out, the next major catalyst for the stock arrives with the May 7, earnings report.

• EPS Estimate: 28 cents (Up from 25 cents YoY)
• Revenue Estimate: $3.08 Billion (Up from $2.36 Billion YoY)
• Valuation: P/E of 131.1x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $160.22. Recent analyst moves include:

• Jefferies: Hold (Lowers Target to $125.00) (Feb. 17)
• Truist Securities: Upgraded to Buy (Raises Target to $150.00) (Feb. 17)
• Citigroup: Buy (Lowers Target to $172.00) (Feb. 13)
• RBC Capital Markets: Outperform (Lowers Target to $170.00) (Feb. 12)
• UBS: Neutral (Lowers Target to $145.00) (Feb. 12)

Shopify’s Benzinga Edge Scorecard Analysis

Below is the Benzinga Edge scorecard for Shopify, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Weak (Score: 18.53) — The stock's trend profile is still lagging, consistent with price sitting below key intermediate moving averages.
• Quality: Strong (Score: 70.31) — The business scores well on quality factors, which can help support longer-term investor interest during pullbacks.
• Value: Weak (Score: 9.51) — Valuation remains expensive versus typical peers, so the stock often needs clean execution to justify the premium.
• Growth: Strong (Score: 79.06) — Growth metrics remain a core part of the bull case, helping explain why buyers step in quickly when sentiment improves.

SHOP Price Action: Shopify shares were up 4.22% at $129.03 at the time of publication on Friday, according to Benzinga Pro data.

Photo: El editorial / Shutterstock