Shopify Inc. (SHOP) stock plummeted by 5.13% in Friday's pre-market session, following a Neutral rating initiation by New Street analyst Dan Salmon.

Salmon initiated coverage on Shopify with a Neutral rating and set a $115 price target on the e-commerce platform provider's stock. While a Neutral rating typically implies a neutral outlook on the stock, the $115 price target is significantly lower than Shopify's current trading levels, indicating potential downside risk.

Analyst initiations and rating changes often have a significant impact on stock prices, as they reflect the analysts' views on a company's prospects and valuation. A lower-than-expected price target or rating downgrade can put downward pressure on a stock, while an upgrade or higher target price can boost a stock's performance.