Shopify reported strong Q4 results and provided positive guidance, yet the stock dropped due to fears of AI disruption. Revenue jumped 31% to $3.67 billion, with GMV rising to $123.84 billion. The company’s subscription revenue grew by 17%, while it initiated a $2 billion stock buyback. Should investors buy the dip?

Despite concerns about AI disruption, Shopify’s strong revenue growth continues. The company is investing in AI tools like Sidekick and Sidekick Pulse to drive growth. Q4 revenue exceeded analyst expectations at $3.67 billion, with GMV up 31% to $123.84 billion. Subscription revenue increased 17% to $777 million, and the company forecasts continued growth.

Shopify’s stock is down about 20% this year, trading at a forward P/S ratio of 11 based on 2026 estimates. While AI remains a growth driver, investor fears persist. The company is performing well, and investors may consider a starter position with potential to add on further dips. Shopify was not among the top 10 stocks identified by The Motley Fool Stock Advisor team.

Read more at Nasdaq: Shopify Shares Sink Despite Strong AI-Powered Growth. Should Investors Buy the Stock on the Dip?