So, Shopify Inc. (SHOP) shares are having a good Friday. They're trading higher, which isn't happening in a vacuum. The Nasdaq is up 0.74%, the S&P 500 has gained 0.42%, and the technology sector is generally in the green. A rising tide lifts all boats, and today, Shopify's boat is getting a lift.

But there's more to the story than just a friendly market. Let's rewind to February 11. That's when Shopify reported its fiscal fourth-quarter numbers. Revenue came in at $3.67 billion. That's a 30.6% jump from the same period last year, and it topped the analyst consensus estimate of $3.59 billion. That's the good news. The not-as-good news? Adjusted earnings were 48 cents per share, which missed the expected 51 cents. So, it was a beat on the top line but a slight miss on the bottom line. In the world of earnings reports, that's often enough to get investors interested, especially when the revenue growth is that strong.

What the Charts Are Saying

From a technical standpoint, the picture is a bit of a mixed bag. The stock is trading about 4% above its 20-day simple moving average (SMA). That suggests a short-term rebound is in play. However, it remains about 15% below its 100-day SMA. That tells you the intermediate-term trend is still looking damaged. The rebound is happening inside a larger downtrend.

Over the past 12 months, shares are up 5.34%. They're currently positioned closer to their 52-week high than their 52-week low, which is a positive sign of resilience. The Relative Strength Index (RSI) is sitting at 44.23. That's in neutral territory, meaning this recent price move hasn't pushed the stock into "overbought" conditions yet. There might be room to run, technically speaking.

For traders watching levels, key resistance sits at $139.00. If the stock can break and hold above that, it could signal more strength. On the downside, key support is at $105.00.

Looking Ahead: The Next Earnings Catalyst

The next big date on the calendar is May 7, when Shopify is scheduled to report earnings again. The expectations are already being set. Analysts are forecasting earnings per share of 28 cents, which would be up from 25 cents a year ago. Revenue is estimated to hit $3.08 billion, a significant increase from $2.36 billion in the prior-year period.

One number that always gets attention is the valuation. Shopify trades at a price-to-earnings (P/E) ratio of 131.1x. That's a premium valuation, no two ways about it. It indicates investors are paying a high price for each dollar of earnings, which is typically justified by expectations of high future growth. It's a bet on the company's potential, not just its current profits.

What the Analysts Think

The overall analyst consensus for Shopify is a "Buy" rating, with an average price target of $160.22. But if you look at recent individual actions, you see a story of adjustments. It's not a uniform chorus of upgrades.

Here's a snapshot of recent moves:

• Jefferies: Maintained a Hold rating but lowered its price target to $125.00 (Feb. 17).
• Truist Securities: Upgraded the stock to Buy and raised its target to $150.00 (Feb. 17).
• Citigroup: Maintained a Buy rating but lowered its target to $172.00 (Feb. 13).
• RBC Capital Markets: Maintained an Outperform rating but lowered its target to $170.00 (Feb. 12).
• UBS: Maintained a Neutral rating and lowered its target to $145.00 (Feb. 12).

The trend here is interesting. Several firms are tweaking their price targets lower, but most are maintaining positive or neutral ratings. Truist's upgrade to Buy stands out as a recent vote of confidence.

A Scorecard for the Stock

Let's break down Shopify's profile using a multi-factor scorecard. This helps explain why investors might be conflicted.

• Momentum: Weak (Score: 18.53). This makes sense given the stock's position below key intermediate moving averages. The trend simply isn't its friend right now.
• Quality: Strong (Score: 70.31). The underlying business scores well on quality factors. This is the bedrock that can give long-term investors confidence during pullbacks.
• Value: Weak (Score: 9.51). Here's the rub. The stock is expensive. It trades at a big premium, so it needs near-flawless execution to justify that price tag.
• Growth: Strong (Score: 79.06). And this is the reason for the premium. Growth metrics are stellar. This is the core of the bull case. When sentiment shifts even slightly positive, growth investors are often quick to step back in.

So, you have a stock with strong growth and quality, but weak momentum and value. It's a classic growth stock profile: fantastic business, questionable price. The current rally is likely being fueled by that growth story, helped along by a good market day.

As of the latest data, Shopify shares were up 4.22%, trading at $129.03.