Bank of America Says Shopify Is the Biggest AI Winner in E-Commerce

Bank of America analysts argue that Shopify (NYSE: SHOP) is the biggest winner in the AI-driven e-commerce race, surpassing rival Amazon (NYSE: AMZN).

Rating Change

BofA upgraded Shopify to "Buy" with a $90 price target, up from a neutral rating. It also lowered Amazon's price target to $210.

Analyst Rationale

Analysts believe Shopify's integrated AI tools, such as the "Sidekick" shopping assistant, give it a unique edge. These tools help merchants optimize stores and manage inventory, while Shopify's flexible business model allows rapid adoption of new technologies.

Context

The upgrade follows Shopify's strong revenue growth last quarter, while Amazon faces increased regulatory scrutiny. Other analysts, like Jefferies, also hold a positive view on Shopify.

What We Conclude

While Amazon remains a formidable player, the recommendation suggests investors may find better opportunities in Shopify over the short to medium term, especially as AI innovation accelerates.