Down Almost 25% in 2026, Is This E‑Commerce Powerhouse Finally a Bargain?
Key Points
Shopify generated 31% revenue growth in its most recent quarter.
The company has been leveraging artificial intelligence (AI) to add value for both shoppers and merchants.
Analysts believe the stock possesses a lot of upside in the near term.
Did you know that, as big as global e-commerce is, it's still growing at an incredibly fast rate? According to estimates from Grand View Research, the e-commerce market is expected to be worth nearly $156 billion by 2033. That's up from just under $34 billion this past year, and that expansion translates into a compounded annual growth rate of 21.6% .
That means e-commerce is still a great place to invest in today. One stock that's made a name for itself in e-commerce over the years is Shopify (NASDAQ: SHOP). Lately, however, it's been struggling, and its shares are down nearly 25% since the start of 2026. Has it become a bargain buy, and is it too good a growth stock to pass up on right now?
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The company's still generating a ton of growth
Although its stock may be off to a poor start to the year, Shopify's business has been doing well of late. For the last three months of 2025, it generated nearly $3.7 billion in revenue, which rose by approximately 31% year over year. That marks the 11th consecutive quarter in which its top line has grown by at least 25% (excluding logistics, a business unit it sold off in 2023).
The company's e-commerce platform serves merchants and customers all over the world, and it has made running a store online easier than ever. Now, with the help of artificial intelligence, merchants can easily create product descriptions and quickly address customer questions and concerns throughout the checkout process. It has also partnered with ChatGPT, making it possible for merchants to sell their products through the popular chatbot.
Shopify's stock could be a deal for long-term investors
With its decline this year, Shopify's stock is now down around 32% from its 52-week high of $182.19. Concerns about global economies and geopolitical uncertainty have undoubtedly weighed on Shopify's stock of late. However, with a robust, fast-growing business, this can make for an excellent growth stock to just buy and hold. The consensus analyst price target for Shopify is $162.70, which implies an upside of 31% from where it trades today, and 34 out of 44 analysts rate it a buy. And that's just based on where analysts think it may go in the short term.
Shopify has experienced tremendous growth over the years, and there's still room for much more in the future. Buying Shopify stock today, while it's down significantly from its highs, could set you up for some great returns down the road.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.