New York, January 20, 2026, 19:51 EST — After-hours trading underway.
- Shopify shares plunged sharply in the regular session but steadied in after-hours trading.
- Markets took a broad risk-off turn following the U.S. renewing tariff threats against Europe over Greenland.
- Traders are zeroing in on Thursday’s EU meeting in Brussels and the wave of U.S. economic data set to drop soon.
Shopify Inc (SHOP) shares dropped 7.26%, ending Tuesday at $144.50, before nudging up about 0.3% in after-hours trading to $144.99. During the day, the stock swung between $143.87 and $151.72, still far below its 52-week high of $182.19. 1
The drop came amid a wider selloff in U.S. stocks after President Donald Trump threatened tariffs on eight European countries over Greenland, sparking new trade war fears. Jamie Cox, managing partner at Harris Financial Group, said he’s “not at the point yet” where the Greenland tariff dispute will “precipitate a correction.” Investors also shifted focus to upcoming U.S. data, including the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge. 2
Pressure is building across global markets. Wasif Latif, chief investment officer at Sarmaya Partners, pointed to “geopolitical risks” making a comeback and noted rising Japanese government bond yields as another factor weighing on investor sentiment. 3
The risk-off sentiment — with investors stepping away from stocks linked to economic cycles — tends to hit high-growth names like Shopify the hardest. Its stock moves not only on company updates but also in line with changes in consumer spending forecasts and interest rates.
Retail and consumer discretionary stocks took a hit Tuesday as tariff worries resurfaced. Amazon and Walmart slid, while Target also fell, MarketWatch reported.
Shopify notched a win in court this week. On Tuesday, General Counsel Jean Niehaus revealed the U.S. Federal Circuit had overturned a $40 million patent dispute verdict. The company made clear it would “pay exactly zero dollars” to patent trolls. 4
Earlier this month, Shopify revealed a partnership with Google to launch the Universal Commerce Protocol, designed to let AI agents hook directly into checkout systems. Soon, Shopify merchants can sell right 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. 5
The Verge highlighted that this shift is part of a broader fight over AI-driven shopping, pitching Google’s protocol directly against OpenAI’s “agentic commerce” standard. Big retailers including Walmart, Target, Wayfair, and Etsy have thrown their support behind the initiative. 6
Shopify shareholders are grappling with short-term uncertainty as trade headlines keep rattling markets beyond the company’s core fundamentals. If tariff threats turn into real policy, traders worry about higher costs for merchants and a potential drag on growth stock valuations tied closely to steady demand.
In Europe, EU leaders are set to meet Thursday evening in Brussels to debate transatlantic relations and possible retaliation measures. Among the options on the table are tariffs and broader trade responses. “Our priority is to engage, not escalate,” said European Commission spokesperson Olof Gill. 7
