Shopify shares tumbled 5.05% during Thursday’s intraday trading session, as a confluence of negative headlines intensified selling pressure on the e-commerce platform provider.

The sharp decline was primarily fueled by a downgrade from Rothschild & Co Redburn, which cut its rating from Buy to Neutral and slashed its price target from $160 to $130. The firm cited a “structural threat” from Meta Platforms, as Meta’s integration of native commerce and AI-driven small business tools could potentially bypass Shopify’s middleware layer and erode its merchant acquisition funnel. This downgrade broke the prior consensus bullish stance and significantly dampened short-term market sentiment.

Additionally, broader macroeconomic headwinds weighed on the stock. Signals that the Federal Reserve may maintain restrictive monetary policy for an extended period prompted investors to de-risk high-valuation growth names, a category in which Shopify firmly sits with a price-to-earnings ratio exceeding 120x. Institutional capital outflows, including reported position reductions by Ark Invest, further exacerbated the downward move, with portfolio managers rotating out of high-beta tech stocks ahead of the company’s upcoming earnings report in August.