Shopify shares fall 5.7% as traders take profits after AI-driven rally

Shopify shares fell 5.7% to $139.35 in early trading today, reversing a nearly 14% two-day surge driven by its partnership with Meta's Muse AI assistant, as traders took profits during Meta Connect 2026. The stock opened at $146.56, hit a high of $151.26, then dropped to a low of $135.68. Valuation concerns amplified the decline, with Shopify's forward price-to-earnings ratio exceeding 90 times before the rally, leaving little room for error. Stifel maintained a buy rating but noted the positive outlook was already priced in. Macro conditions added pressure, with the Nasdaq falling over 1% and the S&P 500 down 0.5%, hitting high-beta growth stocks hardest. Analysts view the drop as a natural pullback from momentum trading rather than fundamental deterioration, though the stock may consolidate after approaching its $182.19 52-week high from a $94 low.