Rothschild Redburn downgraded Shopify to Neutral from Buy. The firm lowered its price target for the stock to $130 from $160.
Analysts identified Meta Platforms as a primary competitive threat. Meta is shifting its AI focus toward developing tools for small-to-medium-sized businesses.
This strategic shift could challenge Shopify’s main growth engine and shrink its competitive moat. Shopify shares declined in pre-market trading following the report.