New York, Feb 3, 2026, 13:27 EST — Regular session
- Shopify shares plunged midday, following a broader selloff in software and cloud stocks
- Investors are reconsidering if the latest AI tools might erode pricing power in some parts of the sector
- Attention shifts to Shopify’s earnings report and guidance set for Feb. 11
Shopify shares dropped 10.5%, hitting $118.28 by 1:15 p.m. EST, after fluctuating between $133.59 and $118.24 earlier in the session.
The selloff hits software and cloud stocks hard, as Wall Street shies away from names valued on fast growth. Earnings season is underway, and the “artificial intelligence (AI)” trade is getting crowded. “Many areas, especially around AI, are priced for perfection,” noted John Campbell, senior portfolio manager at Allspring Global Investments. Reuters
Unease has rippled through the sector. Traders and analysts flagged the launch of Anthropic’s legal plug-in for its Claude chatbot as a trigger for fresh doubts, casting uncertainty on which business models can hold up as AI advances. “The software companies were assumed to be winners from AI,” Lars Skovgaard, senior investment strategist at Danske Bank, noted. Reuters
Jefferies analyst Samad Samana maintained a Hold rating and a $160 price target on the stock ahead of the earnings report. He pointed to third-party data indicating Shopify could beat consensus estimates on gross merchandise value (GMV), which measures the total value of goods sold via its platform.
Shopify announced last week it plans to release its Q4 and full-year 2025 earnings before markets open on Feb. 11, followed by a conference call at 8:30 a.m. ET.
Shopify has also announced changes to its Partner Program Agreement and API terms, effective Feb. 27. These updates impose stricter rules on using merchant and customer data for AI or machine-learning training without clear written consent. The revisions also introduce new partner roles and enhance billing transparency.
Investors will be watching next week’s Shopify report less for a beat and more for clues on what lies ahead. The focus will be on guidance and any shifts in tone around demand, pricing, and costs—these factors are expected to steer the course through late February.
Bulls face the risk that the broader software sell-off could spiral. Even a strong quarter might fail to stabilize the stock if worries about AI disruption continue driving investors away from high-multiple names.
Shopify’s upcoming earnings report on Feb. 11 is the next major event, with investors eager for an updated outlook on the year. Traders are also eyeing the late-February rollout of new partner and API rules as a key date on the calendar.
