Shopify shares rose 33% in a month following Meta’s Muse deal, before ATB Cormark downgraded the stock to Sector Perform. On the We Study Billionaires podcast, Daniel Mahncke argued the rally came mainly from earnings roughly doubling, while the premium investors pay stayed at about 112x operating profits. Normalized EPS rose from $0.73 in 2023 to $1.43 in 2025, and the forward P/E of 80x is close to its 3-year average of 74x. Operating margin climbed from 3.7% to 16.4%, but subscription gross margin fell to 79.7% as cloud and AI costs rose $37 million. The article says the valuation depends on AI shopping agents keeping growth strong, with third-quarter results as the first test.
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.04 |
| Change that session | -0.93% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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