SHOP Surges 34% in a Month: Should You Buy the Stock Now or Wait?

Core Viewpoint - Shopify has demonstrated significant growth in its merchant base and revenue, outperforming the broader technology sector and the internet services industry, driven by its merchant-friendly tools and expanding portfolio [1][2]. Group 1: Financial Performance - In Q1 2025, Shopify's Merchant Solutions generated revenues of $1.74 billion, representing 73.7$74.75 billion in Q1 2025, marking a 22.8% year-over-year growth, supported by same-store sales growth and an increase in the number of merchants [4]. Group 2: Product and Service Expansion - Shopify's Shop Pay processed $22 billion in GMV in Q1 2025, reflecting a 57$1.40 per share, reflecting a 7.69% year-over-year growth, while revenues are estimated at $10.85 billion, indicating a 22.24% growth [13]. - Shopify's stock is currently considered overvalued, with a forward Price/Sales ratio of 12.14X compared to the industry average of 4.98X [14].