Shopify shares fell 3% after ATB Cormark downgraded the stock to Sector Perform from Outperform with a C$234 price target, following a 56% gain over three months. The rally was fueled by AI shopping partnerships with OpenAI, Google, Microsoft and Meta, and the stock jumped 33% in a month on Meta's Muse deal. In Q2 2026, AI-driven traffic and orders to Shopify stores tripled year over year, and gross merchandise volume rose 32% to about $116 billion. Analysts expect EPS to climb from $1.43 in fiscal 2025 to $3.32 by fiscal 2028, but the author argues the price already reflects much of that growth, at about 83x forward earnings before the drop and about 80x after. The next test is Shopify's third-quarter report in early November.
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