# Shopify down 25%. Is it worth buying now?

> Shopify's stock has tumbled, but its valuation still looks expensive compared to rivals like Alphabet.
- Title: Shopify down 25%. Is it worth buying now? · Yahoo Finance
- Summary: Shopify's stock has tumbled, but its valuation still looks expensive compared to rivals like Alphabet. Shopify remains a strong e-commerce platform, but…
- Keywords: shopify, alphabet, spacex, magnificent seven, stock valuation, e-commerce, tech stocks, artificial intelligence, revenue growth, price-to-earnings ratio, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/down-25-shopify-stock-better-112300521.html
- Published: 2026-09-16T11:23:00+00:00
- Read time: 1 min
- Topics: shopify, alphabet, spacex, magnificent seven, stock valuation, e-commerce, tech stocks, artificial intelligence, revenue growth, price-to-earnings ratio, business, finance
## Shopify stock tumbles 25%
Shopify peaked at $179 per share nearly a year ago but has since fallen sharply. Conservative guidance and AI disruption concerns have weighed on the stock.
## Strong growth, but pricey
In the first half of 2026, Shopify's revenue hit $6.7 billion, up 34% year-over-year, with net income jumping to $921 million from $224 million. Yet the stock trades at 89 times earnings.
## E-commerce platform advantage
Shopify lets entrepreneurs build professional e-commerce sites without coding. Its ecosystem bundles workflow automation, email campaigns, payments, and other services in one place.
## Valuation higher than most rivals
Shopify trades at 70 times forward earnings, placing it between SpaceX and most Magnificent Seven stocks. SpaceX's price-to-sales ratio of 93 is far higher, but Alphabet trades at just 17 times earnings.
## Alphabet offers better value
Alphabet's revenue grew 24% in the first half of 2026, with Google Cloud revenue jumping 82%. Its Gemini AI platform ranks among the industry's top engines, and Waymo is set to generate meaningful revenue in 2027.
## Shopify probably not the best buy
While Shopify should continue growing, tech giants like Alphabet are probably better buys right now. Alphabet's accelerating revenue growth, especially in Google Cloud, makes it more likely to pay off for investors.
## Key takeaway

Shopify remains a strong e-commerce platform, but Alphabet offers better growth potential at a lower price.