New York, Feb 3, 2026, 19:24 EST — After-hours
Shopify shares dropped 9.8% on Tuesday, hitting $119.29 in after-hours trading—roughly $12.91 less than the previous close. Around 25.7 million shares changed hands.
The slide followed a widespread selloff in software and data-analytics shares, with investors focused on new AI tools from Anthropic that may automate tasks and squeeze margins for established players. (Reuters)
Stocks closed lower, with the S&P 500 slipping 0.84% and the Nasdaq dropping 1.43%, as investors wrestled with the threat of AI-fueled competition. “Across the spectrum get hit,” noted Art Hogan of B. Riley Wealth. John Campbell at Allspring Global Investments described parts of the market as “priced for perfection.” (Reuters)
Analysts are zeroing in on Shopify’s upcoming earnings. Jefferies’ Samad Samana maintained a Hold rating with a $160 price target, describing the fundamentals as “solid.” He highlighted third-party data indicating Shopify could beat expectations on gross merchandise value (GMV), which tracks the total value of goods sold via its platform. (TipRanks)
Arete Research’s Rocco Strauss bumped Shopify to a Buy and pushed his price target up to $175. He argues that the company’s hold on merchants is stronger than many realize, despite debates over AI coding tools potentially eroding its “moat.” Meanwhile, Samana highlighted the 4% fee merchants shell out for Shopify’s Instant Checkout on ChatGPT and noted that competition worries have resurfaced, especially after Amazon reportedly invested in OpenAI. (TipRanks)
Shopify is set to release its fourth-quarter and full-year earnings before the market opens on Feb. 11, followed by a conference call at 8:30 a.m. ET. (Shopify)
Investors will zero in on GMV growth and payments-related revenue, watching closely for signs that AI-driven checkout boosts volume without triggering a price war among merchants.
The AI story isn’t one-sided. While new tools might lower costs for creating storefronts, marketing, and coding, Shopify could see stiffer competition and increased pressure on its take rates and margins — as Tuesday’s selloff quickly made clear.
Shopify’s next major event is the earnings report and conference call scheduled for Feb. 11. (Shopify)
