Shopify Stock Hits Record Close Amid Growth and AI Integration
On Monday, Shopify (SHOP) closed at a record high of $179.22 for the first time in nearly a year, though it only beat its previous best by 21 cents. The stock has rebounded sharply from a low of around $95 earlier this year and is up about 88% since then. The recent rise appears to be driven more by broader market enthusiasm over AI shopping agents rather than new financial results from Shopify, which hasn't reported earnings since August. However, the company's second-quarter data showed strong growth in both revenue and free cash flow, with year-over-year increases of 34% and 55%, respectively. Despite these gains, some analysts argue that the stock remains expensive relative to its fundamentals. At current levels, Shopify trades at about 98 times trailing-12-month free cash flow — still a high valuation even considering recent improvements in profitability.
Tickers: $SHOP
Topics: AI commerce growth stock Shopify