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Shopify Inc. (NASDAQ:SHOP) is one of the

10 Best Quality Stocks to Buy and Hold for the Next 5 Years.

On May 6, 2026, Oppenheimer analyst Ken Wong lowered the firm’s price target on Shopify Inc. (NASDAQ:SHOP) to $175 from $200 while maintaining an Outperform rating. The firm said Shopify delivered Q1 revenue and gross merchandise value growth ahead of expectations, while management’s Q2 outlook for high-20% growth aligned with optimistic investor expectations. Oppenheimer added that underlying fundamentals remain durable, supported by balanced GMV growth between new and existing merchants and re-accelerating U.S. growth. The firm noted, however, that some investors focused on softer-than-expected GMV growth excluding foreign exchange effects and the lack of clearer sequential improvement in free cash flow margins.

Citi also lowered its price target on Shopify Inc. (NASDAQ:SHOP) to $156 from $163 previously while maintaining a Buy rating, stating that the company’s sales momentum continued during Q1.

On May 5, 2026, Shopify Inc. (NASDAQ:SHOP) reported Q1 revenue of $3.17B, versus the $3.09B consensus estimate. The company also reported Q1 gross merchandise volume of $100.74B and monthly recurring revenue of $212M. President Harley Finkelstein said Shopify is entering the AI era with “strong, durable growth and two decades of commerce intelligence,” which he believes positions the company to compound its advantages through 2026.

Photo by Roberto Cortese on Unsplash

For Q2 2026, Shopify expects gross profit dollars to grow at a mid-20% year-over-year rate, operating expenses to represent 35%-36% of revenue, stock-based compensation of $145M, and free cash flow margins in the mid-teens.

Shopify Inc. (NASDAQ:SHOP) provides commerce technology tools for businesses across multiple regions globally, including North America, Europe, Asia Pacific, Latin America, and the Middle East.

While we acknowledge the potential of SHOP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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