It’s time to scoop up shares of Shopify as the company is primed to recover from an artificial intelligence-led sell-off, according to Bernstein. The bank initiated coverage of the e-commerce company with an outperform rating. Its $160 price target implies upside of 26% from Thursday’s close. Shopify has struggled in 2026, dropping 21% as investors dumped the stock in the middle of the so-called SaaSpocalyse — when investors sold software stocks on to fears that AI would take market share from these companies. SHOP YTD mountain SHOP year to date However, analyst Mark Shmulik said risks appear overblown, with the company “at the center of tech’s Venn Diagram spanning eCommerce, software and payments.” “For whatever headwinds Shopify faces … AI further reduces the entry barriers for the next generation of builders and expands the market. Expect Shopify to be there, enabling those commerce dreams,” Shmulik wrote to clients. “Shopify is a name we’d circle to get reclassified as an AI winner,” he said, adding that the company’s second-quarter report points to strength ahead. The company on Aug. 5 reported earnings and revenue that beat analyst expectations. Third-quarter revenue guidance was also above consensus. Shares rose more than 2% in the premarket. Most analysts covering the stock are bullish. LSEG data shows that 38 of 50 rate Shopify a buy or strong buy.
