TORONTO, Jan 21, 2026, 17:21 (EST)
- Shopify shares fell 4.2% in Toronto even as Canada’s main index ended higher.
- RBC reiterated an Outperform rating and kept a $200 price target ahead of Feb. 18 earnings.
- Markets have been swinging on U.S.-Europe tariff headlines tied to Greenland.
Shopify shares fell 4.2% in Toronto on Wednesday, underperforming a broader rebound in Canada’s main stock index as a Greenland-linked tariff scare eased. “It’s been all geopolitics,” said Allan Small, a senior investment advisor at iA Private Wealth. Reuters
The drop kept pressure on growth stocks after Wall Street logged its biggest one-day fall in three months on Tuesday, when President Donald Trump floated fresh tariff threats tied to Greenland and investors moved into a risk-off stance. “I would be surprised if there was a 3% to 5% drop this week,” said Jamie Cox, managing partner at Harris Financial Group. Reuters
RBC Capital analyst Paul Treiber reiterated an Outperform rating on Shopify on Tuesday and kept a US$200 price target, pointing to what it described as strong fourth-quarter momentum and market share gains. The bank said third-party data suggested Shopify could exceed consensus expectations for Q4 results and first-quarter guidance, with earnings scheduled for Feb. 18; it also cited a price-to-earnings (P/E) ratio of 115, a measure of how much investors pay for each dollar of earnings.
Shopify’s U.S.-listed shares closed down 7.26% at $144.50 on Tuesday, a steeper fall than the broader S&P 500’s 2.06% decline, Yahoo Finance data showed.
In mid-day trading on Tuesday, the stock hit an intraday low of $149.03 and later traded around $150.65, down from a previous close of $155.81, according to GuruFocus. The same report pegged analysts’ one-year targets as spanning $115 to $200.
A MarketMinute commentary published on Monday cast Shopify’s pullback as a post-holiday gut check for the infrastructure behind online retail, arguing investors are treating the sector as more exposed to the wider economy than it looked a few months ago.
Shopify sells software and payments tools that help merchants run online stores, manage inventory and take orders across channels.
The company sits between brands and shoppers, competing with big marketplaces such as Amazon and a crowded lineup of store-building services, including Wix and BigCommerce.
But the premium multiple also cuts the other way. If Shopify’s guidance points to softer spending or slower gross merchandise volume — the dollar value of goods sold on its platform — valuation can compress fast.
For now, the stock is trading on two tracks: macro headlines and the countdown to earnings. The Feb. 18 report is the next obvious moment when the story can move on something other than geopolitics.
