1432 ET - Shopify's sell-off is likely due to continued poor sentiment on AI, according to William Blair in a note. The analysts say the 8% decline "does not reflect the strong growth fundamentals this quarter." Shopify is a growth stock, they say, and "growth appears healthy by all measures," even though 1Q free-cash-flow margin guidance was slightly light. Still, the analysts say "we do not believe the FCF dynamics in the first quarter are enough to drive shares down to this level." Instead, the analysts say the more likely explanation for the selling is "continued investor fears about AI and how it will impact the tech landscape... driving software stocks to be disconnected from fundamentals." (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

February 11, 2026 14:33 ET (19:33 GMT)

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