--- title: "Shopify Stock Slips As Fresh Downgrade Clouds Rebound" type: "News" locale: "en" url: "https://longbridge.com/en/news/293365518.md" description: "Shopify shares declined following a downgrade by Rothschild & Co from Buy to Neutral and a price target cut to $130. Despite the broader tech rally, concerns over Shopify's high P/E ratio of 122x and resistance near $131 pressured the stock. While Wall Street maintains a bullish consensus with an average target of $149.35, the downgrade highlights near-term valuation worries ahead of the August earnings report." datetime: "2026-07-21T15:49:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293365518.md) - [en](https://longbridge.com/en/news/293365518.md) - [zh-HK](https://longbridge.com/zh-HK/news/293365518.md) --- # Shopify Stock Slips As Fresh Downgrade Clouds Rebound **Shopify Inc** (NASDAQ:SHOP) shares traded lower Tuesday after **Rothschild & Co** downgraded the stock from Buy to Neutral and cut its price target to $130 from $160. The downgrade gave traders a stock-specific reason to sell even as large-cap technology shares rallied. The Nasdaq gained 1.58%, the S&P 500 rose 0.63%, and the Technology Select Sector SPDR Fund climbed 2.29%. ## What Is Pressuring Shopify Stock? Shopify’s decline stands out against a broadly positive market, with eight of 11 sectors advancing and the advance-to-decline ratio at 2.7. The stock is also trading near resistance after a recent rebound, which may be encouraging investors to take profits. Shopify’s premium valuation may also be contributing to investor caution. The stock trades at a price-to-earnings ratio of 122 times, leaving less room for disappointment as its next earnings report approaches. **Read Also: Shopify Boosts Buyback Program To $5 Billion: What Investors Need To Know** ## Technical Levels To Watch Shopify remains above its short- and medium-term moving averages. Shares are trading 3.1% above the 20-day simple moving average of $119.87, and 9.5% above the 50-day average of $112.86. However, the stock remains 8.3% below its 200-day moving average of $134.68. Its 50-day average also remains below the 200-day average following a March death cross, signaling that the longer-term trend has not fully recovered. Momentum has improved, with the MACD above its signal line and a positive histogram. Still, resistance near $131 and the 200-day moving average could limit further upside. Key support sits near $104.50, followed by the 52-week low of $94. ## Next Earnings Catalyst Shopify’s next major catalyst is its confirmed Aug. 5, 2026, earnings report. Analysts expect earnings of 37 cents per share, up from 35 cents a year earlier. Revenue is projected at $3.44 billion, compared with $2.68 billion in the prior-year period. ## Analyst Ratings Remain Bullish Despite Rothschild & Co’s downgrade, Wall Street’s broader view remains positive. Shopify carries a Buy consensus rating across 33 analysts, with an average price forecast of $149.35. Targets range from $126 to $180. **Rothschild & Co** downgraded Shopify from Buy to Neutral on July 21 and cut its price target to $130 from $160, providing the clearest catalyst for Tuesday’s decline. However, the move follows two recent bullish calls. **Jefferies** upgraded Shopify to Buy on July 13 and raised its target to $160, while **Stifel** upgraded the stock to Buy on July 10 and lifted its target to $150. The mixed analyst activity suggests near-term concern about valuation and upside following the stock’s recent recovery, even as the broader consensus continues to point to longer-term gains. **SHOP Stock Price Activity:** Shopify shares were down 1.14% at $123.06 at the time of publication on Tuesday, according to Benzinga Pro data. **Read Also: Micron Stock Has 66% Upside As Open‑Source AI Models Guzzle Memory** _Photo: El editorial / Shutterstock_ ### Related Stocks - [SHOP.US](https://longbridge.com/en/quote/SHOP.US.md) - [SHPU.US](https://longbridge.com/en/quote/SHPU.US.md) - [SHPD.US](https://longbridge.com/en/quote/SHPD.US.md) - [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [XLK.US](https://longbridge.com/en/quote/XLK.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [JEF.US](https://longbridge.com/en/quote/JEF.US.md) - [SF.US](https://longbridge.com/en/quote/SF.US.md) - [SSTK.US](https://longbridge.com/en/quote/SSTK.US.md) - [SF-C.US](https://longbridge.com/en/quote/SF-C.US.md) - [SFB.US](https://longbridge.com/en/quote/SFB.US.md) - [SF-B.US](https://longbridge.com/en/quote/SF-B.US.md) - [SF-D.US](https://longbridge.com/en/quote/SF-D.US.md) ## Related News & Research - [This Analyst Thinks Shopify Stock Is a Screaming Buy. 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