MoffettNathanson has upgraded Shopify to Buy from Neutral, citing the company's strong positioning in the emerging conversational commerce market. The brokerage believes recent weakness in software stocks has created an attractive entry point for investors in a company it sees as a long-term winner as AI-driven shopping tools gain traction.

While concerns about AI disruption have weighed on Shopify's stock, MoffettNathanson argues the company stands to benefit from rather than be disrupted by the shift toward conversational commerce. The firm points to growing consumer adoption of chat-based interfaces and AI assistants, where purchases are increasingly initiated through conversational interactions. This trend is driving share gains for direct-to-consumer commerce over traditional marketplaces like Amazon.

The upgrade reflects a structural view that conversational commerce could reshape online retail, with Shopify positioned to capture meaningful market share. MoffettNathanson raised its price target to $150 from $122 and expects 2026 operating income to come in about 15% above broader market estimates. The brokerage's call emphasizes long-term growth opportunities rather than near-term valuation alone, suggesting Shopify's strategy of integrating with emerging AI-driven shopping ecosystems is helping it attract merchants seeking new discovery channels.