Thinking of buying Shopify? A leveraged ETF to watch

Shopify’s stock has fallen nearly a third year-to-date as investors weigh whether compute costs tied to the company’s Sidekick AI tool could pressure subscription gross margins. Some traders are looking to the Direxion Daily SHOP Bull 2X ETF (SHPU) for leveraged exposure to a potential rebound.

Deutsche Bank analyst Bhavin Shah wrote that “concerns have emerged that subscription gross margins could remain under pressure due to incremental compute costs associated with Sidekick.” Shah maintained a “buy” rating on Shopify and set a $175 price target, above the stock’s June 18 close of $108.85.

Shah wrote that the added compute costs may be offset by productivity gains for merchants and rapid product adoption, and that Shopify could recover costs by raising prices on core subscription tiers over the coming quarters.

SHPU, which debuted in August, seeks to deliver 200% of the daily performance of Shopify’s Class A shares. The fund is designed to amplify daily returns and is intended for short-term, risk-tolerant traders; leveraged ETFs reset daily and can deviate from underlying shares’ performance over longer periods.

Shopify’s operating results cited by analysts include 34% revenue growth in Q1 2026, gross merchandise value above $100 billion for a second consecutive quarter, international growth of about 36% and B2B growth near 80%. The company reported mid-teens free cash flow margins.

Investors remain divided over the size of Sidekick’s cost impact versus Shopify’s growth and adoption metrics. Traders considering SHPU are weighing those cost concerns against the company’s reported revenue and volume gains.