Shopify stock rebounds following a sharp decline; Bernstein sees a buying opportunity

Shopify shares rose 2.5% in pre-market trading after Bernstein SocGen initiated coverage with an "outperform" rating and a price target of $160—reflecting an upside potential of over 20% compared to its previous close of $126.60.

Bernstein highlighted Shopify's strength in the U.S. market, where it holds approximately 14% market share, while international, physical, and business-to-business (B2B) commerce account for more than 60% of total sales volume.

Company management also emphasized the impact of artificial intelligence, noting that traffic to product pages driven by Large Language Models (LLMs) is roughly 2.5 times that of traditional search traffic, with conversion rates rising by about 80% for merchants utilizing AI-powered discovery channels.

This development coincides with improved performance in U.S. markets, providing a boost to technology and growth stocks like Shopify.