Wells Fargo removes Shopify stock from Signature Picks list after 78% gain

Published 07/08/2025, 11:34
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Investing.com - Wells Fargo (NYSE:WFC) has removed Shopify (NASDAQ:SHOP), now a $201 billion market cap company, from its Equity Strategy Signature Picks list after the e-commerce platform delivered substantial returns since its addition. According to InvestingPro data, the stock is currently trading near its 52-week high of $156.39.

The investment bank sold its 3.1% position in the cloud-based commerce platform provider following the transfer of Wells Fargo Securities analyst coverage of the company.

Wells Fargo initially established a 2.0% Shopify position in its Signature Picks portfolio in September 2024, according to the firm’s statement.

Since its addition to the list, Shopify generated a 78% total return, significantly outperforming the S&P 500 index’s 15% gain during the same period.

The strong performance of Shopify stock accounted for approximately 135 basis points of portfolio outperformance in less than one year, Wells Fargo noted in its explanation for the removal.

In other recent news, Shopify reported significant growth in its second-quarter results for 2025, with gross merchandise volume (GMV) excluding foreign exchange effects increasing by 29% year-over-year. This marks a four-point acceleration from the previous quarter. Following these results, Citizens JMP raised its price target for Shopify to $185, maintaining a Market Outperform rating. Benchmark also increased its price target to $140, attributing the change to a lower weighted average cost of capital and positive revisions to future estimates. UBS maintained a Neutral rating with a price target of $110, noting Shopify’s expansion beyond North America into enterprise, international, and in-store point-of-sale markets. Additionally, Shopify’s partnership with WEBUY GLOBAL is set to integrate WEBUY’s group-buying platform with Shopify’s merchant network, potentially expanding WEBUY’s reach. Shopify’s ecosystem continues to grow, with integrated payments, fulfillment services, and AI-driven merchant tools capturing demand from businesses moving online.

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