Shopify shares fell 25.8% over the past month. The stock underperformed the broader technology sector. This decline follows a strong first-quarter earnings report.
Investors now focus on rising costs and potential risks. Increased use of 'Sidekick' and other AI products drives higher-than-expected LLM costs.
Transaction and loan losses increased due to credit-related issues. These losses heighten scrutiny of Shopify's expanding financial services.