Shopify shares have tumbled 31% over the past three months, closing at $115 on April 13, as investors grapple with concerns that artificial intelligence could disrupt traditional software business models. The Ottawa-based e-commerce platform reported fourth-quarter revenue growth of 31% and authorized a $2 billion share buyback, yet the stock sold off sharply alongside other Canadian software names.
Within the S&P/TSX 60 Index, the five biggest laggards in 2026 all bear the scars of AI-related selling pressure. Shopify, Constellation Software, Open Text, Thomson Reuters, and CGI Group are down an average of 24% this year as investors envision chatbots displacing current software platforms. The fear centers on whether AI-powered tools like ChatGPT and Claude could enable merchants to build and manage online stores without relying on Shopify’s platform.
Company executives are pushing back aggressively against this narrative. President Harley Finkelstein argues that AI will drive deeper commercial activity for online merchants as shoppers armed with chatbots find their way to Shopify-powered storefronts. The company announced partnerships with Google and Microsoft to develop infrastructure that smooths online shopping experiences within AI-driven conversations. Shopify’s “Agentic Storefronts” allow products to appear directly in ChatGPT and Copilot shopping sessions, positioning the platform at the center of AI-powered commerce.
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Financial metrics support the bullish case. Shopify generated $2.0 billion in free cash flow during 2025 with operating margins reaching 16.4%. The company still holds $6.6 billion in net cash, providing a substantial war chest for continued AI investments. Analysts at CIBC Capital Markets called the selloff “overdone,” noting that Shopify’s scale, data advantage, and integrations with leading AI platforms position it to benefit rather than be displaced.
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For growth investors willing to stomach volatility, the current weakness may present an opportunity to acquire shares of Canada’s tech champion at a meaningful discount to recent highs.
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