**Shopify Inc. (SHOP) shares have dropped 10.8% over the past six months, significantly underperforming both the Zacks Computer and Technology sector, which grew by 3.4%, and the Zacks Internet-Services industry’s 37.9% increase.** The stock’s decline is attributed to uncertainty regarding Shopify’s ability to sustain growth while investing in AI-driven commerce and product innovations. Despite mixed performance among peers—Amazon down 7.5%, Wix.com down 47.3%, and Commerce.com down 38.4%—Shopify’s valuation remains a concern, trading at a 12-month forward price-to-sales ratio of 11.14X compared to the sector average of 6.18X.
**For 2026, the Zacks Consensus Estimate for Shopify’s earnings is projected at $1.76 per share, representing a year-over-year increase of 50.43%.** Revenue forecasts for the same year are set at $14.51 billion, indicating a 25.6% growth year-over-year. Meanwhile, Shopify’s international revenue surged by 36% in 2025, driven by its expansion into 60 new countries and increased adoption of localized services. As Shopify enhances its AI capabilities and international footprint, the company aims to solidify its growth trajectory despite facing potential risks, including macroeconomic challenges and rising transaction losses.
