Shopify Stock Slumps as Valuation Concerns Mount

Shopify's stock has been underperforming its sector, down 4.3% year-to-date compared to an 18.2% return for the broader Computer and Technology sector.

The company is currently trading at a P/S multiple of 11.24X, significantly higher than Amazon's 3.2X, Wix.com's 1.66X, and Commerce.com's 0.5X.

Shopify's revenue jumped 34% year-over-year to $3.58 billion in the second quarter of 2026, with Gross Merchandise Volume (GMV) increasing 32% to $115.6 billion.

However, the company expects third-quarter revenues to grow only in the low-30% range, and gross profit is expected to rise in the mid-to-high 20% range due to a mix shift toward lower-margin Merchant Solutions.