Shopify (SHOP) reported "fundamentally strong" Q4 results, although the stock remains pressured by broader artificial intelligence disruption fears, RBC said in a note Wednesday.

The analysts said the company has "solid" fundamentals, with monthly recurring revenue growth accelerating to 15% year-over-year, up from 10% in Q3. Gross merchandise volume, or GMV, in Europe rose 35% year-over-year in constant currency, outpacing overall GMV growth of 31%. Offline GMV remained stable at 29%, while business-to-business growth stayed strong at 84%.

Shopify is benefiting from AI internally, with headcount down 6% year-over-year while revenue rose 31%, and is integrating AI across its products. The company monetizes AI indirectly, seeing economics similar to other channels. These AI efforts may support share gains, but limited specific data on AI traction keeps broader AI disruption fears alive, the analysts said.

"In light of negative software sentiment, we believe Shopify showing continued strong growth, along with increasing uptake of its AI offerings and products with network effects may help lift sentiment," they added.

RBC cut its price target on Shopify to $170 from $200 and kept its outperform rating.

The shares of the company fell 9.7% in recent trading.

Price: 107.52, Change: -11.47, Percent Change: -9.64