Wells Fargo Trims Shopify (SHOP) Target, Remains Bullish on Long-Term AI Commerce Potential

Shopify Inc. (NASDAQ:SHOP) is included among the Top 10 Reddit Stocks That Will Skyrocket.

On April 6, Wells Fargo lowered its price recommendation on Shopify Inc. (NASDAQ:SHOP) to $166 from $191. It reiterated an Overweight rating on the shares. The firm said it did not expect the rollout of Agentic commerce to be quick or straightforward. It acknowledged it may have been “a bit optimistic” on how fast adoption would happen. Even so, it remains confident that Agentic commerce will gain traction over time, with Shopify positioned to benefit.

During the Q4 2025 earnings call, CFO Jeff Hoffmeister said the company expected Q1 revenue growth in the low 30s year over year, broadly in line with Q4 2025. He noted that the same core drivers from 2025 were likely to continue supporting growth. He also said gross profit dollars were expected to rise in the high 20s. The year-over-year change in gross margins versus Q1 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, with payments remaining strong.

On expenses, Hoffmeister said Q1 operating expenses were expected to come in between 37% and 38% of revenue. He pointed out that this would mark an improvement of a couple of percentage points from Q1 2025, which itself had already declined by nearly 6 points from Q1 2024. On cash flow, he said free cash flow margin for Q1 was expected in the low to mid-teens, slightly below the level reported in Q1 2025.

Shopify Inc. (NASDAQ:SHOP) is a Canada-based global commerce company. It provides the infrastructure businesses use to start, grow, and manage retail operations of any size. Its platform supports commerce across online, in-store, and other channels, aiming to deliver a consistent shopping experience for consumers.

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