Shopify (SHOP) Stock Is Up, What You Need To Know

What Happened?

Shares of e-commerce platform Shopify (NYSE:SHOP) jumped 3.8% in the afternoon session after the broader market rallied as the Federal Reserve signaled potential interest rate cuts. Technology and growth stocks surged on Friday after Federal Reserve Chair Jerome Powell indicated that interest rates could be cut, a welcome development for investors. The positive market sentiment provided a tailwind for Shopify, which had recently experienced a retreat due to profit-taking after a "blowout" Q2 earnings report drove the stock to a multi-year high earlier in August.

After the initial pop the shares cooled down to $142.20, up 4% from previous close.

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What Is The Market Telling Us

Shopify’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 3.4% on the news that markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.

Shopify is up 32.3% since the beginning of the year, and at $142.20 per share, it is trading close to its 52-week high of $154.90 from August 2025. Investors who bought $1,000 worth of Shopify’s shares 5 years ago would now be looking at an investment worth $1,423.

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