Shopify Shares Drop 7% Despite Earnings Beat and AI Commerce Growth
Shopify Inc. (SHOP) tumbled 6.7% to $118.71 despite reporting stronger-than-expected Q4 revenue of $3.67 billion, as investors focused on its earnings miss and cautious free-cash-flow guidance. The e-commerce platform's 48-cent adjusted EPS fell short of estimates, overshadowing its low-30s revenue growth forecast for Q1 2026.
Market sentiment turned against software stocks broadly, with Shopify's $2.1 billion buyback announcement failing to stem the selloff. The company noted accelerating AI-powered commerce tools adoption—a sector increasingly relevant to crypto projects integrating AI—but warned of margin pressure from R&D investments.