Bernstein Initiates Outperform Coverage on Shopify, Citing 26% Upside and AI-Driven Recovery

Bernstein has reaffirmed a bullish stance on Shopify, recommending the stock as a strong play ahead of an anticipated recovery from the recent AI‑driven market sell‑off. The firm’s analysts initiated coverage of the e‑commerce platform with an outperform rating and set a $160 price target, which implies roughly a 26% upside from the most recent close. Shopify faced significant pressure in 2026, declining about 21% during the so‑called “SaaSpocalyse,” a period when investor fears that artificial intelligence would erode demand for software‑as‑a‑service businesses led to broad sell‑offs. However, analyst Mark Shmulik argues that those concerns are overblown. He highlighted Shopify’s unique position at the intersection of e‑commerce, software and payments—effectively at the center of tech’s Venn diagram. Shmulik noted that AI actually lowers entry barriers for the next generation of builders and expands the overall market, positioning Shopify to enable those commerce ambitions. He described Shopify as a candidate to be reclassified among AI winners, citing the company’s robust second‑quarter performance as evidence of underlying strength. Shopify reported earnings and revenue on Aug. 5 that exceeded analyst expectations, and its third‑quarter revenue guidance came in above consensus estimates. The stock rallied more than 2% in premarket trading, and the analyst community remains largely optimistic, with 38 of 50 reviewers rating the stock a buy or strong buy, according to LSEG data.

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