Shopify Rally Interrupted By Downgrade

Shopify Inc (US) SHOP shares are trading lower by $2.65 (3 percent) at $74.00 in Wednesday's session. The catalyst for the decline is a downgrade from RBC Capital from Outperform to Sector Perform with a $77.00 price target.

One day removed from posting its all-time closing high at $76.65, the stock is now trading in the mid-$74.00 handle. Its all-time high was made Monday at $78.19.

After a lower open, Shopify's stock managed a meager $0.13 bounce to $75.17 before continuing its move lower. A few large sellers sent the issue to $72.33 within the first three minutes of the session. That marks the lowest level for the stock since it bottomed on April 19 at $71.70.

The rebound off that depressed level is pausing in the area of Tuesday's low ($74.36), as $74.62 represents the intraday high off the early morning low.