'The Momentum is There,' Says Top Investor About Shopify Stock

'Tis the season for good cheer, holiday merriment, and plenty of shopping. In that vein, Shopify (NASDAQ:SHOP) just enjoyed a stellar few days, notching record-breaking sales during the Black Friday and Cyber Monday weekend.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential Indeed, its gross merchandise volume (i.e. the total dollar value of orders facilitated on the Shopify platform) of $14.6 billion was up 27% from the previous year, and the company also boasted that over 81 million consumers made a purchase from "Shopify-powered brands" on these days of supercharged transactions. All told, it's been a strong stretch for SHOP, which has seen its share price gain more than 50% over the past six months. Recognizing this momentum, top investor Marc Guberti believes that SHOP has the potential to continue its bull run in the new year. "Growth rates remain impressive and can power the stock to new highs in 2026," notes the 5-star investor, who is among the very top 1% of stock pros covered by TipRanks. Guberti lauds Shopify's business model, under which customers pay the e-commerce company subscription fees in order to access Shopify apps and logistics capabilities, among other resources. The investor also points out that the company's merchant solutions segment enjoyed "solid" growth in Q3 2025, with revenues increasing by 38% on a year-over-year basis. He also notes that the high switching costs help the company with customer retention. "The company has a digital ecosystem that gives it an edge over other e-commerce platforms," adds Guberti. While most of its previous growth has come from North America, the investor notes that there is wide potential for expansion abroad. There's a solid track record for this as well, as the company enjoyed a 42% increase in European gross merchandise volume in Q2 of this year. There is a caveat to the investor's optimism, however, and Guberti cites how SHOP's high valuation gives it "little room for error." The investor further explains that any slowdown in consumer spending could lead to a painful correction. "Shopify doesn't have much of a margin of safety, but its excellent business model may turn the stock into a long-term winner," Guberti concludes. (To watch Marc Guberti's track record, click here) That's right around where Wall Street finds itself as well. With 17 Buys and 12 Holds, SHOP carries a Moderate Buy consensus rating. Its 12-month average price target of $180.52 implies an upside in the low double digits. (See SHOP stock forecast)