Shopify (TSX:SHOP)(NYSE:SHOP) is coming off a stellar performance in 2025 with its share price rallying by 44% last year. It's been on a tear, but in the process, that has pushed its valuation to extremely high levels, effectively pricing it for perfection. At the same time, it has growth catalysts that can give its business a boost. The big question for investors in the new year is whether this top Canadian growth stock is still a good buy for 2026.
Currently, the stock trades at an estimated 85 times its future earnings. That's a hefty valuation that leaves no room for error. The company has, however, benefitted from the hype related to artificial intelligence (AI) and it provides many AI tools for shoppers and merchants to get the most out of its platform. And its efforts look to be paying off, at least for now. In the third quarter of 2025, Shopify delivered 32% revenue growth and achieved an 18% free cash flow margin.
The most significant catalyst for 2026 is Shopify's deepening relationship with OpenAI. In a move to capture the next wave of digital commerce, the company has integrated its merchants' inventory directly into ChatGPT. This partnership allows users to discover and purchase products within the chatbot interface without being redirected to external websites. With orders flowing directly into Shopify’s software, this could unlock a massive new sales channel.
Whether or not that accelerates its growth or not could dictate how the stock performs in 2026. But with a high valuation, I'd take a wait-and-see approach with Shopify this year as it may be due for a pullback in its stock price.
