Shopify Inc’s (NASDAQ:SHOP) latest Winter 2026 Edition showcases the company's continued push to strengthen its platform across artificial intelligence, checkout, marketing, and merchant tools.
JP Morgan analyst Reginald L. Smith maintained an Overweight rating on Shopify.
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Advances in AI and Sidekick Integration
Smith said Shopify's Winter 2026 Edition shows clear progress across AI, checkout, marketing, and platform tools, with a strong emphasis on agentic commerce. The analyst came away increasingly confident that Shopify's AI assistant, Sidekick, remains a major differentiator for small and midsize merchants and represents meaningful long-term monetization potential that the Street has yet to factor into estimates.
He highlighted several upgrades to Sidekick.
Shopify has deeply integrated the AI assistant into the Shopify Admin, enabling merchants to automate content creation, data analysis, and more.
Smith noted that Sidekick is especially valuable for small teams that need scale and efficiency.
With this Edition, Shopify launched Sidekick Pulse, which shifts the tool from reactive support to a proactive partner by sending personalized growth recommendations and action steps. The analyst views this evolution as powerful and central to Shopify's competitive edge at the SMB level.
Expanding Commerce Reach Through Partnerships
On agentic commerce, he said Shopify continues positioning itself wherever online shopping occurs. The company has partnered with OpenAI, Perplexity, and Microsoft Corp (NASDAQ:MSFT) Copilot—allowing consumers to complete Shopify checkouts directly within AI chat interfaces. He believes this strategy mirrors past breakthroughs like social commerce and will strengthen Shopify's reach as AI-driven buying accelerates.
Smith also pointed to the Shopify Product Network as a compelling new feature. It allows merchants to showcase complementary products from other sellers directly on their storefronts. Merchants earn commissions on those sales without managing inventory, shipping, or customer service, creating a new passive revenue stream.
Upgrades Across Checkout, Retail, and Merchant Tools
Checkout received notable upgrades as well.
Shopify rolled out Shop Pay Installments in the U.K., a move that also benefits Affirm Holdings, Inc. (NASDAQ:AFRM), the analyst pointed out. It added Apple Inc (NASDAQ:AAPL) Pay within Shop Pay and expanded Klarna availability to nine additional European markets, broadening funding options for merchants, he said.
Smith also highlighted Shopify's new POS Hub, a USB-based hardware accessory that stabilizes connections among scanners, card readers, and printers.
The analyst expects POS Hub to grow in importance as Shopify deepens its presence in physical retail.
Additional updates include the expansion of Shopify Capital into the Netherlands, Spain, and Ireland; the ability for customers to earn USDC-based credits; a new deals feed in the Shop App that spotlights discounts for high-intent shoppers; and more global carrier and logistics integrations across the Shopify Fulfillment Network, he added.
SHOP Price Action: Shopify shares were down 3.41% at $162.66 at the time of publication on Thursday, according to Benzinga Pro data.
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