BNN: Shopify Q4 earnings miss estimates, stock declines

February 12, 2026

Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to discuss the markets amid concerns about tech profits.

“We’ve been seeing over the last week or two that there’s been sectors that have been targeted by investors for the AI disruption narrative,” Sam said. “I think people are starting to realize that AI could increase the level of competition and could ultimately be a threat to your pricing power and your market share.”

While Shopify Inc. (Nasdaq, TSX: SHOP) is a great company with a growing share of the e-commerce market, the problem with it and other software names is that it becomes harder and harder to keep growing as your customer base grows.

“It was trading at over 100 times [price-to-earnings] and has dropped down to about 57 times P/E. Unfortunately, it could go lower because its really a perceptional issue of how much growth can they sustain and what should we pay for it.”

 

 

 

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