Shopify shares rose approximately 6.7% during afternoon trading. The stock's performance tracked a broader rally across the software sector.
Guggenheim analyst John DiFucci upgraded sector bellwethers Salesforce and ServiceNow from Neutral to Buy. DiFucci stated that the market oversold software stocks due to fears regarding artificial intelligence disruption.
This valuation-based call signaled that the recent sector selloff was likely overdone. The upgrades prompted bargain-hunting in peer stocks including Shopify.