Shopify shares are considered overvalued with a Value Score of F and a forward 12-month Price/Sales of 13.75X, compared to the sector’s 6.69X. The stock is trading at a premium against competitors like Amazon, Alibaba, and Etsy, which have lower P/S ratios.

Despite being overvalued, Shopify shares have gained 19.5% year to date, outperforming the sector and industry. The company benefits from a growing merchant base and user-friendly tools like Shop Pay, driving platform adoption and increasing revenues.

Shopify’s expanding portfolio across payments, AI, and automation is boosting platform adoption. The company’s strategic partnerships with companies like Coinbase and Stripe are expected to drive global expansion and cross-border commerce, supporting future growth and revenue.

For the second quarter of 2025, Shopify anticipates revenue and gross profit growth in the mid-twenties percentage rate year over year. The company’s focus on AI-driven tools, seamless payments, and global integrations is expected to support long-term growth and profitability.

The consensus estimate for Shopify’s 2025 revenues is $10.86 billion, indicating a year-over-year growth of 22.28%. With a Zacks Rank #1 (Strong Buy), Shopify is seen as an attractive stock for investors looking to capitalize on its expanding merchant base and strong performance in core revenue segments.

Read more at Nasdaq: SHOP Trades Higher Than Industry at 13.75X P/S: Is the Stock a Buy?