Rothschild & Co downgraded Shopify (SHOP) from Buy to Neutral. The firm lowered its price target for the stock from $160 to $130. Shopify shares fell in pre-market trading following the announcement.
Analysts identified Meta Platforms (META) as a primary competitive threat. Meta’s shift toward providing AI tools for small and medium-sized businesses could erode Shopify’s key growth areas.
Rothschild warned that Meta’s AI commerce efforts might shrink Shopify’s competitive moat. The firm estimates that Shopify’s growth rate could be cut in half under a worst-case scenario.