Shares look overdue for a round of bear notes
Shopify Inc (NASDAQ:SHOP) is down 3.5% to trade at $91.20 at last check, after the e-commerce name issued disappointing guidance, citing tariff uncertainty. The company also reported first-quarter profits of 25 cents per share -- in line with estimates -- as well as revenue beat.
Analysts have yet to chime in, despite the majority leaning bullish. Of the 45 in coverage, 28 call Shopify stock a "buy" or better, while its 12-month consensus target price of $117.87 is a 28.5% discount to current levels. In other words, shares look overdue for a round of bear notes.
On the charts, SHOP is testing support at $90 after conquering the region in late March. Longer term, the $100 level and 60-day moving average have kept gains contained over the last couple of months. The security is down 15% so far in 2025, but sports a 44.1% year-over-year lead.
The options pits are buzzing, with 35,000 calls and 29,000 puts across the tape so far, or 6 times the volume typically seen at this point. Most popular is the weekly 5/23 92-strike call, where new positions are being opened.
The equity's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 89% of readings from the past year. This means long-term options traders are bearish.