Why Traders Just Made A Big Negative Bet On Shopify (SHOP) Before Earnings

Shopify Inc. (NASDAQ:SHOP) is among the 10 High Growth Canadian Stocks to Buy Now.

On April 9, bearish options flow was noted in Shopify Inc. (NASDAQ:SHOP), with 12,004 puts trading, roughly four times normal volume. The most active contracts were May $80 puts and weekly May $75 puts, while the put/call ratio climbed to 5.19. Although some traders appear cautious ahead of earnings expected on May 7, heavy short-term hedging activity often emerges around high-profile growth names and can create attractive entry points for long-term investors. Volatility around earnings frequently reflects uncertainty rather than deterioration in fundamentals, and Shopify has repeatedly demonstrated an ability to outperform expectations over time.

On April 6, Wells Fargo lowered its price target on Shopify Inc. (NASDAQ:SHOP) to $166 from $191 while maintaining an Overweight rating. Importantly, the firm reiterated confidence that “agentic commerce” — AI-powered automated shopping and selling experiences — will become a meaningful growth driver, with Shopify positioned as one of the prime beneficiaries. That view highlights the company’s strategic advantage as merchants increasingly adopt AI tools for storefront creation, customer service, logistics, and conversion optimization.

Shopify Inc. (NASDAQ:SHOP) is one of the world’s leading cloud-based commerce platforms, enabling millions of merchants to build, customize, and scale online businesses across web, mobile, social media, and physical retail channels. Founded in 2006 and headquartered in Ottawa, Canada, the company has evolved from a website builder into a full-scale commerce ecosystem spanning payments, fulfillment, advertising, lending, and enterprise solutions.

While we acknowledge the risk and potential of SHOP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHOP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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