Should You Buy Shopify Stock Before Nov. 3? History Has a Clear Answer.
2026-10-26 17:45
•Will Healy •The Motley Fool
••••••• • Axe Cap view
Why Waiting on Shopify Makes Sense Ahead of Earnings
Despite strong revenue growth and a solid Q3 track record, Shopify's high valuation and heavy AI spending suggest caution before the next earnings report.
Shopify often shines in Q3 as merchants prepare for the holiday rush, and this year is no different with a forecasted 32% revenue jump. However, its price-to-earnings ratio sits at a dizzying 114, signaling that much of this growth is already baked into the price. On top of that, the company's heavy investments in AI could pressure short-term profits, a factor sometimes overlooked amid the seasonal optimism. For South African investors, this matters mainly through the USD/ZAR exchange, since Shopify isn't JSE-listed. A weaker rand might offset some FX drag, but that’s not reason enough to chase the stock now. If the earnings disappoint or AI investments fail to pay off quickly, the stock could retrace sharply. Better to hold for now and revisit once the Q3 results provide clarity. this is just our opinion and not financial advice
Avoid buying Shopify before the November earnings report; hold if you already own it and consider trimming if you need liquidity. Watch USD/ZAR for movements influencing offshore tech exposure.
- SHOP
- USD/ZAR
- Disappointing Q3 earnings
- AI investments weighing on margins
5/10
While Shopify's Q3 reports have historically been positive due to holiday season retail preparation, the article recommends holding rather than buying before the Nov. 3 earnings report. Despite expected 32% revenue growth and positive historical patterns, the stock's lofty P/E ratio of 114 and heavy AI spending investments present near-term headwinds that could negate seasonal optimism.
Our take is based on reporting first published by The Motley Fool.