New York, January 20, 2026, 19:51 EST — Trading after hours.
- Shopify shares dropped steeply during the regular session before leveling off in after-hours trading.
- A broad risk-off shift hit markets after the U.S. renewed tariff threats aimed at Europe over Greenland.
- Traders are focused on Thursday’s EU meeting in Brussels and the upcoming U.S. economic data releases.
Shares of Shopify Inc (SHOP) slipped 7.26% to close at $144.50 on Tuesday, then edged up roughly 0.3% in after-hours to $144.99. The stock fluctuated between $143.87 and $151.72 during the session, well off its 52-week peak of $182.19. (Investing)
The slide followed a broader selloff in U.S. stocks after President Donald Trump warned of tariffs on eight European nations over Greenland, stoking fresh trade war jitters. Jamie Cox, managing partner at Harris Financial Group, said he’s “not at the point yet” where the back-and-forth on Greenland tariffs will “precipitate a correction.” Investors also turned their attention to upcoming U.S. data, including the Personal Consumption Expenditures price index, the Federal Reserve’s favored inflation measure. (Reuters)
Pressure mounted worldwide. Wasif Latif, chief investment officer at Sarmaya Partners, flagged “geopolitical risks” as “re-emerging” and highlighted the uptick in Japanese government bond yields as another hit to market mood. (Reuters)
That risk-off mood — where investors pull back from stocks tied closely to economic swings — usually weighs heaviest on high-growth firms like Shopify. Its shares don’t just react to company news but also track shifts in consumer spending outlooks and borrowing costs.
Retail and consumer discretionary shares stumbled Tuesday amid renewed tariff concerns. Amazon and Walmart dropped, with Target also losing ground, MarketWatch reported.
Shopify scored a legal victory this week. On Tuesday, General Counsel Jean Niehaus announced that the U.S. Federal Circuit overturned a $40 million verdict tied to a patent dispute. Shopify said it would “pay exactly zero dollars” to patent trolls. (Shopify)
Shopify announced earlier this month that it teamed up with Google to create the Universal Commerce Protocol, enabling AI agents to integrate with checkout processes. Shopify merchants will soon be able to sell straight through Google’s AI Mode in Search and the Gemini app. “The shift to agentic commerce will require a shared language across the ecosystem—and the Universal Commerce Protocol provides that framework,” said Ashish Gupta, Google’s vice president and general manager of merchant shopping. (Shopify)
The Verge noted this move fits into a wider battle to control AI-powered shopping, where Google’s protocol goes head-to-head with OpenAI’s “agentic commerce” standard. Retail giants like Walmart, Target, Wayfair, and Etsy are backing the effort. (The Verge)
Shopify shareholders face a short-term risk as trade headlines continue to sway markets more than the underlying fundamentals. Should tariff threats escalate into actual policy, traders fear rising costs for merchants and a hit to valuations in growth stocks that rely heavily on stable demand.
Turning to Europe, EU leaders will gather in Brussels Thursday evening to discuss transatlantic ties and potential retaliation. Officials are considering options that include tariffs and wider trade actions. “Our priority is to engage, not escalate,” said European Commission spokesperson Olof Gill. (Apnews)
