The TSX continues to hold its ground in May 2026, sustained by strong corporate earnings and energy sector leadership. While technology remains a challenged sector, losses have been reduced significantly in the last 30 days. Canada’s tech darling trades at a deep discount and is a compelling ‘buy for life’ opportunity right now.
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High-growth stock
Shopify (TSX:SHOP) is a perennial target on dips, having risen to prominence six years ago at the height of the e-commerce boom. Government-mandated lockdowns during that period accelerated the shift toward online shopping.
SHOP was a standout TSX30 winner for three consecutive years, ranking 2nd in 2019, 1st in 2020, and 2nd in 2021. A slump followed that peak until last year’s strong comeback.
Additionally, the commerce company briefly unseated the Royal Bank of Canada as the TSX’s most valuable company twice: first in May 2020 and more recently in August 2025. As of this writing, Shopify sits firmly in third place, trailing RBC and Toronto-Dominion Bank with a market capitalization of approximately $225.2 billion.
Total recall
Many merchants thought the global pandemic and lockdowns would shut down their businesses. Instead, Shopify was heaven-sent, as online retailers experienced rapid growth. Unfortunately, e-commerce slowed down in the post-pandemic period. The lost momentum, including thinning margins, prompted Shopify to refocus.
Management had to let go of capital-intensive businesses and implement workforce cuts. After a significant 74.8% loss in 2022, SHOP bounced back with positive returns over the next three years, averaging plus-70.8% per year. A sustainable, profitable growth strategy replaced the “growth at all costs” model.
Enticing entry point
SHOP is down nearly 32% year-to-date if you invest today. The current share price is $150.68, which is 40.5% lower than its 52-week high of $253.10. Analysts, however, recommend a buy rating. Their 12-month average price target is $204.71, representing a 35.9% potential upside.
The bull sentiment stems from exceptionally strong business fundamentals, growing revenues, and an enduring business. Today, Shopify is a force in commerce, boasting a foundational operating system and scalable ecosystem. Furthermore, the company reported more than 30% growth in revenue and gross merchant volume (GMV) for four consecutive quarters (Q2 2025 to Q1 2026).
Jeff Hoffmeister, Chief Financial Officer of Shopify, added, “We ended 2025 with strength across all merchant sizes, regions, and channels, setting us up well for 2026.” Shopify also announced its first-ever US$2 billion buyback program at year-end. The company also believes that artificial intelligence (AI) adoption is the primary differentiator for long-term success.
New era of AI commerce
Shopify dominates the e-commerce industry, although it faces numerous challenges, notably stiff competition and rising costs. Meanwhile, strategic partnerships and international expansion help maintain its competitive advantage.
According to its President, Harley Finkelstein, Shopify laid the rails for the new era of AI commerce last year. “2026 will be the year of the builders, and we’ll be powering them – from first sale to full scale,” he said.
Shopify CEO Tobias Lütke believes that AI is a non-negotiable component of operations and will transform from a novelty into an essential in 2026. SHOP has delivered enormous gains in the recent past, and a repeat and more sustained growth is forthcoming.
