Shopify's Early Adoption of AI Supports Product Innovation Flywheel, Oppenheimer Says

MT Newswires Live06-16 23:17

Shopify's (SHOP) push towards artificial intelligence before its peers has helped it establish a product innovation flywheel and secure cultural buy-in advantages, Oppenheimer said in a Tuesday note.

Some investors worry that Shopify's ambitious adoption of AI might eventually hit a productivity wall or pressure margins but AI-related costs should remain manageable, Oppenheimer said.

Analysts further said that while there are worries that the company will eventually need to account for consumer uncertainty, Shopify's gross merchandise value seasonality proved durable even against higher tariffs.

The company has credited AI with enabling growth in the high-20s% to over 30% range and retaining stable headcount over the past few years, analysts said.

Oppenheimer has an outperform rating and a $175 price target on the stock.

Price: 112.33, Change: -0.16, Percent Change: -0.14

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment