Shopify's stock price plummeted 5.05% during intraday trading on Thursday, following the company's recent quarterly earnings report.
The sharp decline comes after multiple Wall Street analysts significantly lowered their price targets for the e-commerce giant. Firms including JPMorgan, Wedbush, RBC Capital Markets, Cantor Fitzgerald, Barclays, Deutsche Bank, and Truist Securities all reduced their targets, citing concerns over free cash flow, taxes, and broader AI disruption fears despite acknowledging a fundamentally strong quarter. Additionally, the company's newly authorized $2 billion share buyback plan has raised investor questions regarding potential volatility, execution risks, and cash usage.