The broader Canadian equity market has maintained its upward trajectory in 2026. However, a few high-quality TSX stocks are significantly off their highs, providing an opportunity to accumulate near the current levels. These stocks are backed by fundamentally strong businesses and built to hold forever.
One such high-quality TSX stock is Shopify (TSX: SHOP). The Canadian technology giant is currently trading roughly 40% below its highs, even though its core business continues to expand at an impressive pace.
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Why Shopify stock has pulled back
Several factors have contributed to the weakness in Shopify shares this year. Investors have become more cautious about expensive technology stocks amid economic uncertainty and concerns about consumer spending. At the same time, the broader software sector has faced growing questions about how artificial intelligence (AI) could reshape competition and profitability over the coming years.
Shopify’s latest earnings report added to those concerns. Although the company delivered strong first-quarter results, the market reacted negatively to its second-quarter 2026 guidance. Investors were disappointed by signs that revenue growth may be moderating after an extended period of exceptionally strong expansion.
The company reported quarterly revenue of US$3.2 billion, up 34% year over year. Shopify also surpassed US$100 billion in gross merchandise volume (GMV) during the quarter, highlighting continued strength across merchant categories, regions, and sales channels.
Despite those impressive numbers, management guided for revenue growth in the high-20% range for the second quarter. While the outlook is still strong, the forecast represents a slowdown compared to the +30% growth rates Shopify had delivered over the previous four quarters.
Investors also remain focused on rising operating expenses as the company increases spending on artificial intelligence initiatives and international expansion efforts. Those investments could strengthen Shopify’s competitive position over the long term, but they may pressure profitability in the near future.
Here’s why Shopify stock is built to hold forever
Shopify stock has experienced a meaningful pullback in recent months, but the company’s underlying business remains strong. Moreover, Shopify is strategically positioned to benefit from the shift toward omnichannel retail platforms.
In Q1, Shopify processed US$101 billion in GMV, up 35% year over year. Growth was broad-based across merchants of all sizes. However, larger businesses are becoming a more important driver of growth. Merchants generating over $25 million in GMV are growing the fastest, while mid-sized merchants contributed the most incremental revenue. Shopify is also gaining traction with enterprise customers. Merchants with more than $100 million in annual GMV now account for a steadily rising share of revenue.
Offline commerce is another major growth area. Offline GMV rose 33% in Q1, led by merchants operating more than 20 retail locations. This suggests larger retailers are increasingly adopting Shopify for both online and in-store operations. The company’s business-to-business (B2B) business is expanding rapidly as well, with B2B GMV jumping 80% year over year.
Payments remain a key strength. Shopify Payments processed $67 billion in GMV, up 41%, while Shop Pay grew 59% to $35 billion. International growth is especially strong, with Shop Pay volume overseas rising by more than 70%.
Looking ahead, Shopify appears well-positioned to benefit from AI-driven commerce and its unified commerce platform. Shopify’s expanding ecosystem, growing enterprise adoption, and strength across business channels and geographies support long-term growth, making it a hold-forever stock.
