After years of investor fatigue, e-commerce startups are making a comeback. Venture capitalists like Ben Lerer of Lerer Hippeau are reinvesting in early-stage consumer brands such as Elm Biosciences and Stiller’s Soda. According to The Information, online sales now make up 16.3% of all U.S. retail sales – the same level seen at the height of the pandemic. Venture funding in e-commerce rose 11% in the last quarter to $3.3 billion, signaling a quiet revival in the sector.
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At the center of this rebound sits Shopify (SHOP), the infrastructure platform that powers many of these startups. Its role has shifted from fueling direct-to-consumer (DTC) brands to becoming the foundation of the new omnichannel model that blends online, retail, and even AI-driven discovery.
Shopify’s Role in the New E-Commerce Cycle
The early wave of DTC brands built their success on Shopify’s technology. However, many later struggled when ad costs soared and growth slowed. Now, as new brands focus on selling across Amazon (AMZN), Walmart (WMT), and social platforms like TikTok, Shopify is adapting.
Shopify has added tools for physical retail, wholesale, and global payments through Shopify Markets and Shop Pay. More recently, it became part of OpenAI’s (PC:OPAIQ) ChatGPT integrations, letting users complete purchases directly within the chatbot using Stripe’s checkout system. This link positions Shopify inside what OpenAI calls its “super assistant” ecosystem, alongside Spotify (SPOT), Zillow (ZG), and Coursera (COUR).
These integrations could make Shopify a key player in the next phase of AI-driven commerce. ChatGPT’s 700 million weekly users can now interact with Shopify’s merchants directly in chat, helping brands reach shoppers in new digital spaces.
Analyst Views Stay Positive Despite Management Changes
Shopify’s stock has gained about 42% year-to-date and now trades near $151. Recently, Benchmark Co. analyst Mark Zgutowicz reiterated a Buy rating with a $190 price target, while Oppenheimer maintained an Outperform rating with a $180 target.
Both firms remain confident in Shopify’s leadership even after recent executive departures, including Chief Revenue Officer Bobby Morrison and former COO Kaz Nejatian. Oppenheimer noted that President Harley Finkelstein’s active role in enterprise sales helps offset any short-term execution risk.
The Bottom Line
E-commerce’s revival is not only being driven by new brands but also by the platforms that support them. As founders rebuild around partnerships with Amazon and TikTok, Shopify’s expanding ecosystem keeps it firmly at the center of online retail. Its growing role in AI commerce through ChatGPT could become the company’s next key growth engine. With investor sentiment improving across the sector, Shopify looks positioned to capture both the return of startup momentum and the rise of AI-driven consumer shopping.
Is SHOP Stock a Buy?
On the Street, Shopify holds a Moderate Buy consensus rating, based on 34 analysts. The average SHOP stock price target stands at $166.30, implying a 10.12% upside from the current price.
