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: 111.850
Low
140.00
Averages
180.62
High
200.00
Current: 111.850
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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- Market Validation: The deal's value exceeds Nebius's previous company valuation, marking a significant recognition of its status as an emerging cloud provider and proving the viability of its business model, which attracts increased investor interest.
- Technological Investment: Nebius will provide Meta with $12 billion worth of computing capacity using Nvidia's latest Vera Rubin chips, a technological choice that will significantly enhance Meta's competitiveness in the AI space, ensuring it stays ahead in technological advancements.
- Strategic Expansion: This agreement not only deepens the collaboration between Nebius and Meta but also complements other significant investments from Nvidia and Microsoft, further solidifying Nebius's critical role in the global AI infrastructure market.
See More
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- AI Infrastructure Partnership: Dutch company Nebius has signed a significant AI infrastructure deal worth up to $27 billion with Meta Platforms, ensuring Meta has sufficient computing power for its AI model development over the next five years, highlighting Meta's ambitions in the AI space.
- Market Validation: The contract's value exceeds Nebius's valuation from the previous day, solidifying its position as an emerging cloud service provider and demonstrating the viability of its business model, attracting more investor interest.
- Technological Investment: Meta will utilize Nvidia's latest Vera Rubin chips, expected to provide $12 billion worth of computing capacity starting in 2027, which not only enhances Meta's technological capabilities but also presents significant revenue growth potential for Nebius.
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See More
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- Investor Warning: I expressed concerns about Shopify's stock valuation, indicating that it may be overvalued heading into 2026, potentially exposing investors to risks, especially amid increasing market volatility.
- Market Price Analysis: As of the afternoon of March 28, 2026, Shopify's stock price reached elevated levels, reflecting an overly optimistic market expectation for its future growth that may not align with actual performance.
- Video Release Timing: The warning video was published on March 30, 2026, aimed at alerting investors to exercise caution in their investment decisions, particularly in the current uncertain economic environment.
- Long-term Impact Assessment: Should Shopify's stock fail to meet growth expectations, it could lead to a decline in investor confidence, adversely affecting its market performance and company valuation, thereby impacting the overall stability of investment portfolios.
See More
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Company Overview: Affirm Holdings is a key player in the buy-now-pay-later (BNPL) sector, reporting significant growth in gross merchandise volume, revenue, and net income in its recent quarterly results.
Financial Performance: The company achieved a gross merchandise volume of $13.8 billion, a 36% increase year-over-year, with revenue climbing 30% to $1.12 billion and net income rising 61% to $130 million.
Market Position and Risks: Despite strong financials, analysts express caution due to potential credit risks and competition from established players like PayPal and Klarna, as well as rising delinquency rates in the credit market.
Investment Outlook: Affirm is seen as a high-risk, high-reward investment, with analysts generally bullish on its growth potential, but investors are advised to be wary of associated risks before investing.
See More
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- Bitcoin Value Decline: Bitcoin has lost nearly 50% of its value since reaching over $126,000 last October, primarily due to elevated interest rates driving investors toward conservative investments, which has negatively impacted market sentiment.
- Solana vs. Bitcoin: As a proof-of-stake (PoS) token that cannot be mined, Solana achieves transaction speeds of 2,000 to 5,000 transactions per second, significantly surpassing Ethereum's 30 TPS, attracting 17,708 active developers and establishing itself as a major blockchain platform.
- Real-World Applications: Solana is utilized by Visa for stablecoin payments and Shopify for cryptocurrency transactions, making it more competitive in the market and drawing increased attention from institutional investors due to its practical use cases.
- Market Potential Analysis: With a market cap of $48 billion, significantly smaller than Bitcoin's $1.3 trillion, if interest rates decline and the macro environment stabilizes, more investors may flock to smaller altcoins like Solana, potentially driving a price rebound.
See More
Solana's Expanding Ecosystem Attracts Investors
- Rapid Developer Growth: By the end of 2025, Solana attracted 17,708 active developers, making it the second-largest blockchain developer platform after Ethereum, indicating rapid ecosystem expansion that could further enhance its market position.
- Transaction Speed Advantage: Solana's Layer 1 blockchain achieves 2,000 to 5,000 transactions per second, significantly surpassing Ethereum's 30 TPS, making it more practical for payment settlements, which has attracted applications from companies like Visa and Shopify.
- ETF Attracts Institutional Investment: The approval of Solana's first spot exchange-traded funds (ETFs) with staking features is expected to draw more institutional investor attention, potentially boosting its market capitalization, which currently stands at $48 billion.
- Significant Market Potential: Despite Bitcoin's $1.3 trillion market cap, Solana has the opportunity to attract more investors, especially as interest in smaller altcoins grows in a stabilizing macro environment with declining interest rates, which could lead to a price rebound.
See More
