Shopify's stock price plummeted 5.04% during intraday trading on Tuesday, as the stock faced significant downward pressure.

The sharp decline follows a rally of over 10% in the preceding week, which triggered substantial profit-taking activity from investors. Concurrently, the broader Internet Services & Infrastructure sector experienced widespread selling, with peers like Snowflake, MongoDB, and Cloudflare also trading lower, creating a negative sector sentiment that weighed on Shopify.

Fundamental concerns also contributed to the sell-off. The company's guidance for second-quarter revenue growth of approximately 30% represents a deceleration from the 34% growth rate reported in the first quarter, raising questions about its growth trajectory. This sentiment was reinforced by recent analyst actions, including Barclays and Citi cutting their target prices for the stock and Wedbush removing Shopify from its AI 30 list.