The AI arms race continues apace, and stocks all over the spectrum are feeling the impact. Earlier today, Shopify (NASDAQ:SHOP) gained a little ground after bringing in Google’s (NASDAQ:GOOG) Google Cloud Discovery AI tools for use on its platform.
Shopify merchants will have access to a range of new options on the platform as a result. First, they’ll have access to Google Cloud Retail Search, which will allow vendors to make finding products on their platforms that much easier. Machine learning systems will help optimize e-commerce operations and fight search abandonment. The AI systems will even help in customizing search results for individual shoppers based on past behavior.
All this comes at an excellent time for Shopify, which is clearly having troubles of its own and needs to both keep its current merchants and bring in what it can. Shopify, just in the last three days, was seen rescinding job offers to interns, noting that it was only hiring “mission critical” positions right now. Moreover, Shopify is putting a lot more cash into logistics operations, including it recent acquisition of Deliverr. In addition, Shopify also augmented its customer loyalty systems by bringing in Try Your Best, an Avalanche-blockchain derivative that gives customers access to NFT-based rewards structures.
Still, analysts are more than willing to give Shopify a chance. Analyst consensus calls Shopify stock a Moderate Buy, with nine Buy ratings against 18 Holds and one Sell. SHOP also offers a modest upside potential of around 6% thanks to its $48.57 average price target.
