Shopify (TSX:SHOP)(NASDAQ:SHOP) has been having a tough time in 2026. While the overall markets are doing well, the Canadian e-commerce company isn't benefiting from that excitement. It's been struggling for much of the year and is trading around the $200 mark on the Toronto Stock Exchange.
The stock plummeted in the early part of the year, as did many involved with providing software solutions. Concerns that artificial intelligence (AI) would disrupt their businesses resulted in many top growth stocks in tech falling considerably in value. Shopify was no exception, and at one point it was trading at around $129. It's rallied since then, but it's been a struggle.
Earlier this month, it posted strong quarterly numbers with its revenue rising by 34% year over year. The company has been incorporating AI into its software and Shopify President Harley Finkelstein pointed to that being a way it's been able to add value for its customers. "We power every kind of business, and with AI, we're expanding what's possible for all of them."
For the current quarter, the company is still expecting solid growth in the low-thirties percentage, which would suggest a comparable performance to how it did in Q2. A problem for Shopify, however, may be its valuation. It's trading at close to 100 times its trailing earnings and a forward price-to-earnings multiple of about 75, and that's based on how much profit analysts expect the business to generate in the year ahead. It's a hefty premium for the growth stock.
Shopify's stock has been gaining momentum of late and while it is a bit expensive, as a long-term investment, it can still be a good option to buy and hold, as its growth remains solid.
Tech Insider
