However, some analysts are skeptical about the near-term impact of Shopify's AI tools in attracting larger clients. The company's long-term strategy involves gaining more merchants on its platform who will pay higher prices for its services. Shopify President Harley Finkelstein noted that bringing larger merchants to the platform has led to increased sales volumes for the company's loan, payment, and point-of-sales tools.
Key takeaways:
- Shopify is set to report its results on Thursday, with Wall Street expecting a revenue growth of 22.38% to $1.67 billion compared to last year.
- The company has launched Shopify Magic, a suite of AI-powered tools for merchants, which includes product descriptions, virtual assistants, blog posting, and email campaign tools. This is expected to increase sales of Shopify's merchant products by 21% to $1.2 billion.
- Despite the new AI tools, some analysts do not believe they will be a near-term selling point for attracting larger clients. However, Shopify Magic is part of the company's long-term strategy to gain more merchants on its platform.
- Generative AI may be a "tougher sell" for merchants experiencing slowing demand and less willingness to experiment, according to CFRA Research analyst Angelo Zino.