On Monday, Shopify’s stock rose 2.9%to US$112.39 after Wedbush analyst Scott Devitt upgraded his rating from Neutral to Outperform.

He also increased the price target from US$115 to US$125, citing a positive margin outlook and strong operating income growth projected for 2025.

Over the past year, Shopify’s stock has risen 41%, significantly outperforming the S&P 500, which gained 1% on the same day.

Shopify’s third-quarter earnings report in November also boosted investor confidence, with a 30% revenue increase year-over-year to US$2.16 billion.

Earnings per share reached 64 cents, significantly surpassing expectations.