Will Shopify's (SHOP) AI Push Redefine Its Competitive Edge in Retail Technology?

• On October 9, 2025, Shopify announced the appointment of Jessica Hertz as Chief Operating Officer, promoting her from General Counsel where she oversaw global legal, communications, policy, talent, and trust teams since joining in 2021.
• During the same period, Shopify's integration with OpenAI’s ChatGPT enabled merchants to sell directly through conversational AI, highlighting the company's push into AI-driven commerce and enhanced merchant services.
• We'll explore how this integration with ChatGPT and emphasis on AI-driven retail channels shape Shopify's investment narrative and outlook.

We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Shopify Investment Narrative Recap

Shopify's investment story rests on the company's ability to harness AI, strengthen its merchant ecosystem, and maintain growth as commerce shifts online. The appointment of Jessica Hertz as COO is unlikely to affect near-term catalysts such as accelerating international expansion and the rapid rollout of AI features, but leadership transitions can sometimes add operational miscues, a risk worth monitoring given Shopify’s ongoing upmarket push and diversification efforts.

Most relevant to this leadership change is Shopify’s partnership with Global-e to expand Shop Pay’s reach, allowing international customers a simplified, one-click checkout. This move directly supports Shopify’s catalyst around international expansion, which remains a central theme for both revenue acceleration and improved competitive positioning.

However, investors should also keep in mind that rising regulatory scrutiny and evolving privacy laws worldwide could add further complexity...

Read the full narrative on Shopify (it's free!)

Shopify's outlook anticipates $18.5 billion in revenue and $2.7 billion in earnings by 2028. This is based on a 22.6% annual revenue growth rate and a $0.4 billion increase in earnings from the current $2.3 billion.

Uncover how Shopify's forecasts yield a $164.45 fair value, in line with its current price.

Exploring Other Perspectives

Private investor fair value estimates from the Simply Wall St Community range from US$82 to US$200 across 24 analyses. Against this wide backdrop, increasing digital regulations could affect Shopify's future margins and service innovation, making it vital to understand the different opinions driving the market.

Explore 24 other fair value estimates on Shopify - why the stock might be worth as much as 21% more than the current price!

Build Your Own Shopify Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Shopify research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Shopify research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Shopify's overall financial health at a glance.

Contemplating Other Strategies?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• These 10 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com