On Tuesday morning, Shopify Inc. (NYSE: SHOP) experienced an uptick in its stock price during premarket trading hours, ahead of the company's scheduled release of its quarterly earnings figures on Wednesday before the opening bell. This upward movement in Shopify shares unfolded alongside broader market gains, with the S&P 500 futures inching up by approximately 0.1%, even as the technology sector overall faced a marginal decline of 0.03%.
Despite this positive performance in early trading, a closer examination of Shopify’s stock trends reveals certain headwinds. The company’s shares are currently trading roughly 11.4% below the 20-day simple moving average (SMA), a short-term trendline indicator, and approximately 21.2% below the 100-day SMA, which reflects medium-term price momentum. These discrepancies suggest that the stock is encountering resistance and struggling to build upward traction in the immediate and intermediate time frames.
Furthermore, over the preceding 12 months, Shopify’s stock price has experienced a slight contraction, declining by about 1.25%. Notably, the current price levels are nearer to the 52-week lows rather than the highs, underscoring a challenging pricing environment for the stock in recent periods.
Technical momentum indicators point to a mixed outlook. The Relative Strength Index (RSI), which measures the magnitude of recent price changes to evaluate overbought or oversold conditions, stands at approximately 31.51, placing it within neutral territory. Conversely, the Moving Average Convergence Divergence (MACD) indicator is positioned below its signal line, an element typically associated with bearish pressure. This combination implies that while the stock faces downward forces, there remains an ambivalence concerning its near-term direction.
Market participants have also identified key psychological and technical levels for Shopify’s share price: a support zone near $116.00 and a resistance threshold at approximately $129.50. These points are likely to be critical in assessing potential price movements following the earnings announcement.
Looking ahead to the forthcoming earnings release on February 11, 2026, analysts have set expectations that reflect earnings per share (EPS) of 47 cents, representing an uptick from 44 cents reported in the same quarter a year prior. Similarly, revenue forecasts anticipate approximately $3.59 billion, marking a notable increase from the previous $2.81 billion.
Shopify’s valuation multiples suggest a premium standing in the marketplace, with a price-to-earnings (P/E) ratio calculated at around 87.1 times expected earnings. Such a figure indicates that investors remain willing to pay a substantial premium for the company’s growth prospects despite recent price softness.
The majority of analyst opinions reinforce a positive outlook on the stock. The consensus rating is categorized as 'Buy,' with an average price target set near $160.39 per share. However, divergent weatherings in analyst coverage have occurred recently. For instance, BMO Capital Markets maintained an Outperform rating but lowered their target to $150.00 on February 9. Meanwhile, Scotiabank upgraded Shopify to Sector Outperform and raised their price objective to $200.00 earlier, on January 8. Conversely, Wolfe Research downgraded the stock to Peer Perform on January 6, indicating caution amid a competitive peer landscape.
Evaluating Shopify through proprietary scoring metrics reflects various strengths and weaknesses. The Benzinga Edge ranking system rates the stock’s value factor as weak, scoring 9.65, driven primarily by its elevated premium valuation relative to peers. Contrastingly, its growth score rates highly at 80.06, suggesting strong expectations for future earnings and revenue expansion. Quality measures receive a neutral rating of 65.57, indicating a healthy balance sheet without exceptionally strong or weak signals. The momentum category is weak, scoring 15.6, emphasizing stock price underperformance compared to the broader market during recent periods.
During premarket trading on Tuesday, Shopify shares gained 3.43%, reaching a price near $122.46, as reported by Benzinga Pro data. This bounce aligns with broader market trends yet does not fully resolve the underlying technical pressures facing the stock heading into earnings disclosure.