Shopify shares climbed after the company forecast quarterly revenue above estimates, rebounding from a recent AI-driven selloff in software stocks. Investors are now turning their attention to how automation and artificial intelligence could reshape the next phase of e-commerce growth.
BNN Bloomberg spoke with Sri Iyer, lead portfolio manager and head of investments at Guardian Capital, who said the company’s push into “agentic commerce” could automate large parts of the e-commerce supply chain and strengthen its competitive position despite valuation concerns.
Key Takeaways
- Shopify is advancing “agentic commerce,” using AI agents to automate merchant and consumer workflows beyond traditional software-as-a-service tools.
- Automating elements of the e-commerce supply chain could create efficiency gains and deepen Shopify’s competitive moat.
- While generative AI tools can assist with storefront creation and content, they do not replace the payments, logistics and merchant infrastructure underpinning digital commerce.
- After a strong revenue beat and solid cash flow, expectations remain high, with valuation sensitivity likely to drive continued volatility.
- Broader AI monetization themes are emerging across markets, including AI-native infrastructure, robotics integration in health care and edge computing embedded in consumer devices.
Read the full transcript below:
ANDREW: Shares in Shopify are higher after the company forecast quarterly revenue above estimates, and the holiday season was decent. There was plenty of flow through Shopify’s ecosystem, as they call it. Let’s find out more about Shopify’s artificial intelligence strategy. We’re joined by Sri Iyer, lead portfolio manager and head of investments at Guardian Capital. Great to see you.
SRI: Thank you.
ANDREW: We know that Shopify is using AI extensively. They’ve teamed up with some of the big AI engines to make it easier for people to shop directly using them. Are you impressed by their strategy so far?
SRI: First of all, Shopify beat revenue by 30 per cent. It’s a big day. Everything is on track. But what we’re laser-focused on is their agentic e-commerce implementation. We think there’s much more to go in that space. Overall, if the e-commerce supply chain can be automated by Shopify, that would be a big advantage for them. We’re watching that very closely.
ANDREW: What do you mean by automated?
SRI: Agentic e-commerce, or agentic commerce, is the biggest focus right now in that part of the business. Much of the process automation is shifting. Rather than having a SaaS AI framework, you have AI agents actually doing the work for consumers. That’s the next stage.
ANDREW: Just to make sure I have it straight — sorry to interrupt — that means when I’m dealing with Shopify, it’s as though I have a human being helping me with my shopping, correct?
SRI: It’s an agent — an artificial intelligence agent. It becomes more prescriptive than predictive. It helps you shop, and it also helps the manufacturer sell in a more efficient way. This evolution in artificial intelligence is a game changer for Shopify. They’re starting from a strong footing — strong revenue, strong cash flow, strong buybacks. They’re using about $140 million in share rewards. Their buybacks are strong, and they’re also rewarding employees. These are positive signals. The stock is priced to perfection, but if the implementation of AI is strong, there could be further upside.
ANDREW: But you haven’t been buying it lately because of the valuation?
SRI: Correct. It’s priced to perfection, and there’s been volatility because there’s confusion in the market about how AI adoption will work for many companies. Shopify has two core models: its payments model and its SaaS model for users. That SaaS model is in a state of flux right now, with cloud code and other tools coming to market. It will be interesting to see how Shopify navigates that space and how it serves small businesses that may use simplified, lower-cost architectures to start their businesses. That’s an area we’re watching closely.
ANDREW: It’s interesting that people seem willing to trust AI — maybe to too great an extent. Some are even using it for psychotherapy, and concerns have been raised about that. This is perhaps less sinister — using it to help us shop. Do we trust these agents?
SRI: We do trust them. It’s an evolution of artificial intelligence. We’ve been using AI in stock picking for about eight years — from machine learning to deep learning and language models — and now we’re using artificial intelligence agents to generate ideas and conviction. This is happening across virtually every business. Monitoring how Shopify monetizes that customer experience is critical, and I think they’re focused on it. But you shouldn’t throw the baby out with the bathwater. Some SaaS AI companies facing AI capex pressures will succeed, and some won’t. Our job is to determine which is which.
ANDREW: What about Alphabet? Is that a stock you’d buy with new money?
SRI: We’re focused on companies that are AI-native — where artificial intelligence is foundational to the business. Alphabet is an AI-native company. Its infrastructure is built on AI with global reach. That creates an oligopoly-like dynamic. In my view, Google is not just a tech company — it’s an AI utility company. It enables artificial intelligence, which will be a necessity for businesses operating in this space, along with a few key competitors.
ANDREW: And Gemini is part of that — their AI agent?
SRI: Gemini is very much part of it. We compare Grok, Gemini and OpenAI — these are competitive frameworks — but Google Gemini is among the leaders when it comes to reasoning and other large language model capabilities.
ANDREW: Intuitive Surgical is known for robotic surgery machines. AI will help there?
SRI: It already has. Intuitive Surgical is integrating artificial intelligence into robotics, diagnostics, imaging and algorithms. The future of medical science increasingly includes robotic operations. We like the company’s strong earnings and visibility around AI implementation.
ANDREW: I remember my uncle in Victoria, B.C., who was a doctor. He said this idea of brilliant surgeons is really about experience — how long you’ve been doing it. I guess AI can learn and incorporate experience?
SRI: Absolutely. Integrating AI chips into robots — giving them greater reasoning and precision — is critical. Many complex operations are already performed robotically. Confidence in artificial intelligence is permeating nearly every aspect of life.
ANDREW: And what about Apple? The cliché is that it’s been a laggard in AI.
SRI: In my opinion, Apple is one of the most underappreciated AI companies in the investable universe. For Apple, native AI means edge computing. AI will be everywhere but largely invisible. The smartphone becomes the AI device. The human connection to AI will run through the phone. We may be underestimating the impact of partnerships, including those involving Google, and how edge computing will evolve on devices. Apple has one of the largest ecosystems and distribution networks. If it integrates the right AI into its devices, the response could be transformative.
ANDREW: You’re talking about Apple using Google’s AI technology?
SRI: Potentially using Google’s AI technology on the device itself, so it becomes a living, breathing assistant in the future.
ANDREW: I’m already impressed that I can ask Siri while driving to open Spotify and play something. That seems primitive compared to what you’re describing.
SRI: It will seem very primitive compared with what’s coming in the next AI-native framework.
ANDREW: Thanks very much.
SRI: My pleasure.
ANDREW: Sri Iyer, lead portfolio manager and head of investments at Guardian Capital.
---
This BNN Bloomberg summary and transcript of the Feb. 11, 2026 interview with Sri Iyer are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
