In a strategic review of internet stocks, Wolfe Research cut its rating on Shopify to peer perform from outperform, signaling a more cautious stance on the e-commerce leader’s near-term growth prospects. Analyst Rick Ducat acknowledged that Shopify shares have climbed roughly 25% over the past 12 months, outpacing many of its sector peers, but he emphasized that the stock has repeatedly failed to clear a long-term resistance trend line dating back to early last year. Ducat noted that average daily trading volume recently exceeded 1.4 million shares, underscoring investor interest despite the downward technical ceiling. The downgrade reflects concerns around moderating gross merchandise volume growth—projected to slow to 17% year-over-year in the current quarter—and the potential impact of rising fulfillment and marketing costs on margin expansion. Investors will be watching Shopify’s next quarterly report for updates on subscription revenue trends and operating leverage initiatives before reassessing the stock’s valuation.