Shopify Stock Soars 17% as Jim Cramer Slams AI Fears
Shopify (SHOP) stock jumped 17% on August 5 after a second-quarter earnings beat crushed a monthslong narrative about artificial intelligence eating its business.
Revenue climbed 34% year over year to $3.58 billion, beating estimates by $140 million. Shopify also raised its guidance for the current quarter.
Wall Street Got the AI Threat Backwards
CNBC's Jim Cramer went after analysts who spent the summer predicting Shopify's downfall. They argued that so-called vibe coding would let small merchants skip Shopify entirely. Vibe coding refers to informal AI tools that let non-engineers build software with plain-language prompts.
Cramer called that logic backwards. Shopify's customers are mostly small and medium-sized businesses. They rarely have the resources to build or maintain commerce software, no matter how advanced AI tools become.
"I'm so angry at people who basically said, you know what, Shopify's going to be eaten by vibe code, as if small, medium-sized businesses could somehow obviate you when you do so much more than just fulfillment."
- Jim Cramer, Mad Moneyโฆ Continue reading the full article at the original source below.
