RBC’s Paul Treiber Held Firm on Shopify (SHOP) After a Slight Miss. Here’s the AI Pitch Farooq Thu, November 12, 2026 at 6:12 PM EST 4 min read ^GSPC -0.35% SHOP -1.18% ^DJI -0.36% TFC -1.07% ^IXIC -0.39% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the 10 Best Growth Stocks for the Next 5 Years and Shopify (NASDAQ:SHOP) ranked 9th on this list.
Technology stocks went from celebration to rout within two sessions this month. On Wednesday, November 4, equities rallied after Democrats swept Congress in the midterm elections. By Thursday, the S&P 500 had fallen 4.36% and the Dow had lost 3.44%, while the Nasdaq Composite closed 5.52% lower, its worst day since April 2025. The drop pushed the tech-heavy index into correction territory, at least 10% below its October 6 record close.
The selling did not stop there, and the S&P 500 went on to post its worst week since June. Truist chief markets strategist Keith Lerner called the action "something of a buyers' strike" in technology. Breadth was thin, with only about one in seven S&P 500 stocks rising on the day of the steepest decline.
Stock market charts. Photo by Kaboompics.com on Pexels
The election result mattered for reasons that go beyond party control. eToro market analyst Jakub Rochlitz said rising electricity prices turned data-center construction into a political issue during the campaign. In his view, markets now assume that the artificial intelligence buildout will be slower and more expensive, which rewrites growth expectations for every company along the supply chain.
The damage was sharpest in semiconductors. The Philadelphia Semiconductor Index plunged 12% and the Nasdaq-100 fell 6.4%, the biggest one-day declines for both gauges since March 2020. Readers following the group can find more names in our list of the most promising technology stocks to buy right now.
Anxiety about AI spending had been building well before the vote. Bloomberg reported that interest rates were climbing, borrowing to fund the buildout was growing, and public backlash against data centers was spreading. Investors are now demanding higher yields from heavily indebted data-center builders, which raises the cost of every new project.
The numbers show how quickly sentiment turned. An October 30 sell-off erased more than $1 trillion of tech market value, and chipmakers surrendered more than $1.5 trillion on November 5 alone. Analyst-driven picks from the same corner of the market are collected in our list of the best aggressive growth stocks to buy according to Wall Street analysts.
Not everyone read the move as a break in the trend. Argent Capital Management portfolio manager Jed Ellerbroek told Reuters that the selling felt like capitulation among the beneficiaries of data-center spending, though the size of the move looked outsized to him. His comment shows that even investors who saw capitulation in data-center names questioned the scale of the decline.
Shopify made it to our list because it has a five-year EPS growth rate of 28.70% and an average upside potential of 18%.
Shopify's pitch is that artificial intelligence sends shoppers toward merchants rather than away from them. Management said traffic from AI-driven sources rose 2.6 times in the third quarter, and orders tied to that traffic rose 3.3 times, evidence that chatbot-led discovery is already turning into sales. Shopify lets merchants run stores, payments and shipping from one dashboard, so any new buying channel flows through its checkout. Business-to-business volume also grew far faster than the platform overall, which widens the set of buyers that checkout can reach.
The report was not flawless. Subscription revenue and gross merchandise volume landed slightly short of expectations, and the shares dropped sharply on November 3 before recovering part of the loss the next day. Even so, RBC Capital Markets analyst Paul Treiber maintained an Outperform rating and a $200 price target after the results, one of several firms that stayed constructive as the company leaned into agentic commerce.
We recently looked at whether Shopify's AI opportunity is bigger than it looks. Management has guided fourth-quarter revenue growth to the low 30s in percentage terms, which gives investors the next checkpoint for that thesis.
While we acknowledge the risk and potential of SHOP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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