In the Face of the "SaaS Apocalypse," These 3 Companies Are Increasing Share Buybacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 16 2026
0mins
Should l Buy SHOP?
Source: Marketbeat
Market Performance: The software sector has seen a significant decline, with the iShares Expanded Tech-Software Sector ETF down nearly 22% in 2026, while some companies are taking action to boost confidence through share buyback authorizations.
Company Highlights: Dynatrace has performed better than many software names, with shares down only about 14% in 2026, partly due to strong earnings reports that exceeded sales estimates and adjusted earnings per share.
Investor Sentiment: Despite some companies announcing substantial share buyback programs, investor confidence remains shaky, with concerns about the software industry's growth potential amid the rise of artificial intelligence tools.
Stock Recommendations: Analysts are suggesting that investors should be selective when considering investments in software stocks, as the market is facing challenges and the emergence of AI tools could disrupt traditional software development.
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Analyst Views on SHOP
Wall Street analysts forecast SHOP stock price to rise
31 Analyst Rating
18 Buy
13 Hold
0 Sell
Moderate Buy
Current: 131.150
Low
140.00
Averages
180.62
High
200.00
Current: 131.150
Low
140.00
Averages
180.62
High
200.00
About SHOP
Shopify Inc. (Shopify) is a Canada-based global commerce company. The Company provides essential Internet infrastructure for commerce, offering tools to start, grow, market and manage a retail business of any size. It provides platforms and services that are engineered and delivers a shopping experience for consumers online, in store and everywhere in between. Its software enables merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Company's Shopify platform provides merchants with a single view of their business across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify's platform operates across 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Developer Ecosystem: By the end of 2025, Solana had 17,708 active developers, ranking second behind Ethereum, indicating strong performance in developer attraction that could lead to more innovations and applications emerging.
- Strategic Partnerships: Collaborations with Visa and Shopify, utilizing Solana's platform for stablecoin payments and e-commerce cryptocurrency transactions, have increased its market visibility, making it more appealing in a competitive landscape.
- New Product Launches: The introduction of blockchain-powered phones like Saga and Seeker, along with ETFs featuring staking capabilities, aims to attract more retail and institutional investors, further expanding its ecosystem and increasing market share.
See More
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- Price Decline: Solana's price has plummeted over 70% from its all-time high of nearly $295 last January to approximately $85, presenting a potential buying opportunity for investors amidst market volatility.
- Developer Ecosystem: As of late 2025, Solana boasts 17,708 active developers, ranking second to Ethereum's 31,869, indicating a growing appeal of its ecosystem despite the current price drop.
- Technical Advantage: Solana's Layer 1 blockchain can process nearly 1,200 transactions per second, significantly outpacing Ethereum's 24 TPS, with a theoretical maximum of 65,000 TPS, enhancing its attractiveness for developers and future application development.
- Strategic Partnerships: Collaborations with Visa and Shopify bolster Solana's presence in stablecoin payments and e-commerce, increasing its market visibility and potentially attracting more investor interest in its growth prospects.
See More
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See More
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- Diversified Business Model: Alphabet, the parent company of Google, relies not only on its search engine, which accounts for over 50% of its total revenue, but also boasts a diverse portfolio including YouTube, cloud computing services, and the Android operating system, showcasing its strong market adaptability and innovation potential.
- E-commerce Platform Strength: Shopify excelled in the e-commerce sector with direct sales reaching $378.4 billion last year, a 29% year-over-year increase, by allowing brands to customize their e-commerce presence and meet consumer demand for authentic brand stories, thereby solidifying its market position.
- Semiconductor Industry Leader: Taiwan Semiconductor Manufacturing Company (TSMC) dominates the global high-performance processing silicon market, serving clients like Apple and Nvidia, with the global microchip market expected to grow at nearly 11% annually, indicating sustained long-term demand in the industry.
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See More
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- Price Target Adjustment: Wells Fargo has lowered its price target for Shopify (SHOP) from $191 to $166, yet maintains an Overweight rating, indicating confidence in its long-term AI commerce potential and the gradual market acceptance of the Agentic commerce model.
- Revenue Growth Outlook: During the Q4 2025 earnings call, CFO Jeff Hoffmeister projected Q1 revenue growth to be in the low 30s year-over-year, demonstrating sustained support from core drivers and reflecting Shopify's robust performance in the e-commerce sector.
- Gross Margin Changes: Hoffmeister noted that gross profit dollars are expected to rise by over 20%, with year-over-year changes in gross margins indicating a continued shift between Merchant Solutions and Subscription Solutions, highlighting the company's balanced development across different business lines.
- Operating Expense Improvement: Q1 operating expenses are anticipated to be between 37% and 38% of revenue, marking a couple of percentage points improvement from Q1 2025, showcasing Shopify's proactive cost control efforts that further enhance its profitability.
See More
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- Distorted Demand Signals: While AI demand appears explosive, CEO Dario Amodei of Anthropic highlights that data centers take 1-2 years to build, leading companies to commit billions without verified demand, risking customer loss or delayed revenues, which could impact financial stability.
- Pricing Model Shift: Anthropic is transitioning from flat-rate enterprise pricing to per-token billing, ensuring that revenue reflects actual usage, a strategy aimed at addressing the economic imbalance caused by changes in agentic AI usage patterns, thereby enhancing the company's competitive position in the market.
- Increasing Industry Pressure: As the AI industry gradually accepts per-token billing models, companies like OpenAI face similar transformation pressures, potentially leading their customers to reassess AI usage efficiency, which could affect future market performance and investor confidence.
- Investor Focus: Anthropic and OpenAI are expected to pursue IPOs this year, with investors likely to first scrutinize the authenticity of demand; Anthropic's per-token billing provides clearer data on customer value, while OpenAI may face greater challenges in proving the authenticity of its growth figures.
See More
