New York, Feb 5, 2026, 15:09 (EST) — Regular session.
- Shopify shares slipped roughly 2% in afternoon trading, fluctuating between $108.90 and $115.71 during the session
- Software stocks remain under pressure amid investor concerns that AI could compress profit margins
- After a steep drop, traders are eyeing Shopify’s February 11 earnings for clues.
Shares of Shopify Inc dropped 2.1% to $111.59 Thursday afternoon, slipping $2.43 from Wednesday’s close. The stock swung between $108.90 and $115.71 during the session as selling pressure on software stocks stayed strong.
Wall Street is grappling with another wave of AI-fueled jitters alongside fresh signs that the labor market is cooling. Alphabet revealed plans to potentially ramp up capital spending to $185 billion in 2026, reigniting doubts about whether the AI push will deliver returns. At the same time, data showed new unemployment claims climbing more than expected and job openings hitting their lowest point in over five years. Shopify is set to release its fourth-quarter and full-year 2025 results on Feb. 11 before the open, with a conference call scheduled for 8:30 a.m. ET. Reuters
The software sector has been leading the market’s moves. The S&P 500 software and services index dropped about 3% on Thursday and is set to lose roughly $1 trillion in market cap since Jan. 28. ServiceNow, Salesforce, and Microsoft were among the biggest decliners, Reuters reported. Goldman Sachs strategist Ben Snider noted that near-term earnings might offer some clues on resilience but warned they could still fall short of easing longer-term risks from AI disruption. Reuters
Shopify was caught up in that trading wave earlier this week. Its shares dropped 9.7% on Tuesday in Toronto, as Canada’s tech sector slipped 5%. Some investors flagged Anthropic’s newly updated AI chatbot as sparking fresh competition concerns, Reuters reported. Mike Archibald, portfolio manager at AGF Investments, said investors will be looking closely at quarterly results and guidance to see if there’s “an actual impact” on businesses. Reuters
By Wednesday, the discussion had shifted from a single-day jolt to a wider debate over valuation and the staying power of businesses. Reuters reported that software and services stocks have lost roughly $830 billion in market value across six sessions since Jan. 28. This followed the release of a new legal tool from Anthropic’s Claude, which underscored how large language models are encroaching on areas once thought secure. James St. Aubin, CIO at Ocean Park Asset Management, described the selloff as an “awakening” to AI’s disruptive force, noting that the protective moats around many software companies now appear “a lot more narrow.” Reuters
Anthropic stirred the pot on Thursday with the rollout of Claude Opus 4.6, an upgraded model that boasts bigger prompts and more autonomous “agents” capable of splitting up tasks. Scott White, the company’s head of product for enterprise, said the goal is to bridge AI with legacy software tools and “lower the floor” to unlock more value. Reuters
Shopify investors face the usual balancing act: growth against costs, and just how resilient demand remains in a market now wary of pricey software. Traders will also be tuning in for any news on the competitive landscape and the rollout of AI features as they gain traction in commerce and business tools.
“Take rate” — the slice of transactions Shopify pockets as revenue — is central to the debate. If investors reckon AI will push take rates down or require more spending to retain merchants, the stock could remain under pressure, even absent any direct news about the company.
But the risk runs both ways. The sector selloff this week might fuel its own downtrend as funds pull back, potentially dragging Shopify down no matter how the quarter shapes up on paper. Volatility has been the norm throughout software. A clear outlook might spark a sharp rebound, but the expectations are steep.
Shopify’s upcoming report on Feb. 11, along with its 2026 outlook, will be the next major catalyst. Until then, SHOP will probably move in step with the wider software sector — and react to each fresh AI development that reshuffles investor bets on winners and losers.
