Morgan Stanley sees golden buying opportunity in a battered stock

TheStreet · Mwangi Enos · 2026-11-05 21:07 UTC

AI shopping is growing fast but still a small part of the overall market; here's what Morgan Stanley says matters before the holidays.

On Oct. 28, before earnings, I covered Morgan Stanley‘s preview of Shopify: sales were booming, and a holiday test was coming. And I find it interesting how much small businesses now rely on online orders to reach customers beyond their immediate neighborhoods.

For many sellers, the holiday season can make a real difference to their year. Now the numbers are in. Shopify (SHOP) provides essential internet infrastructure for commerce, from first-time entrepreneurs to brands like Aldo, SKIMS, Supreme, and Vuori in more than 175 countries.

In the third quarter of fiscal 2026, it handled $119.15 billion in sales, up 29.5%, and revenue rose 32% to $3.74 billion. Free cash flow was $816 million, a 22% margin, up from 18% a year earlier.

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