Now to AI acting as a personal shopper of sorts. Shares of Etsy and Shopify popping after OpenAI announced a partnership with them. Etsy surging almost 16% today.Shop up over 6%. CNBC's Mackenzie Sagalas has got all the details. Mac, we want to know how this is going to work.>> So Mel, this is a major test of Agentic Commerce at scale because this feature instant checkout, it lets US buyers buy directly through chat GBT starting with Etsy and soon Shopify. That means no links, no new tabs. You just tap buy ...

Core Insights - OpenAI has launched a new feature called "Instant Checkout," allowing users to purchase products directly through its AI chatbot ChatGPT, marking a significant step into the e-commerce sector [1][2] - The feature initially supports U.S. users purchasing single items from Etsy, with plans to expand to over 1 million Shopify merchants, including well-known brands like Skims and Glossier [1] - Following the announcement, Etsy's stock surged nearly 16%, while Shopify's stock rose over 6% [1] Company Developments - OpenAI will charge fees on transactions completed through ChatGPT, which will become a new revenue source for the company, although specific rates have not been disclosed [1] - The company is currently not profitable and is heavily investing in expanding its computing infrastructure [1] Technical Aspects - The Instant Checkout feature is developed in collaboration with fintech company Stripe and is supported by the Agentic Commerce Protocol, allowing users to complete transactions without leaving ChatGPT [2] - OpenAI plans to open-source this framework to enable merchants and developers to quickly build integrated scenarios and explore more payment and purchasing applications [2] User Engagement - As of August this year, ChatGPT has over 700 million weekly active users, with a significant number of inquiries related to shopping and consumption [2] - The company aims to create a seamless shopping experience within ChatGPT, helping merchants and developers convert conversations into transactions [2]

Core Insights - Shopify has officially partnered with OpenAI to integrate its merchants' products into ChatGPT, marking the introduction of in-app shopping for the first time [1][2][8] Partnership Details - The partnership allows a select group of Shopify merchants, including Glossier, Spanx, and Steve Madden, to participate in an early-access program for selling on ChatGPT [3] - OpenAI's new "Instant Checkout" feature enables users in the U.S. to purchase products directly from Etsy sellers within the app, with plans to expand this feature to Shopify merchants soon [2][4] - Merchants will have control over whether to use the Instant Checkout feature or direct shoppers to their online stores [3][7] Market Impact - Following the announcement, Shopify's stock rose by six percent on both the Nasdaq and Toronto Stock Exchange [6] - Analysts suggest that this new shopping option could significantly accelerate e-commerce sales, with Shopify's gross merchandise volume (GMV) expected to approach $400 billion USD this year [6][9] - The partnership is anticipated to potentially drive over $500 million in net revenue for Shopify on a future run-rate basis [9] Strategic Considerations - Analysts are questioning whether this partnership could lead Shopify to monetize demand generation, a strategy the company has historically resisted [7] - Merchants will incur a small fee for each purchase made through the chatbot, which will optimize user experience based on various factors [7]

Key Points There was some exciting news in the artificial intelligence (AI) sphere affecting the company. A top AI developer is to integrate Shopify's payment technology into its system. 10 stocks we like better than Shopify › As the trading week kicked off on Monday, the market just couldn't stop ringing up purchases of Shopify (NASDAQ: SHOP) stock. Shares of the durable e-commerce facilitator closed up over 6%, comparing extremely well to the S&P 500's (SNPINDEX: ^GSPC) less than 0.3% advance. C ...

Core Insights - OpenAI has launched an instant checkout feature allowing users to purchase items directly through ChatGPT, aiming to create new revenue streams and potentially reshape the e-commerce landscape [1][6] - The feature is currently available to U.S. users of ChatGPT Plus, Pro, and free versions, with plans to expand to multi-item carts and additional regions in the future [1][5] Group 1: Business Model and Revenue Generation - OpenAI will charge fees for transactions completed through ChatGPT, although these fees will not affect the purchase price for users [6] - The instant checkout feature is designed to convert ChatGPT's large user engagement into commercial transactions, with over 7 million weekly active users reported in August, many of whom are interested in shopping [3][6] Group 2: Partnerships and Market Impact - OpenAI has partnered with Etsy and Shopify, enabling U.S. users to buy single items directly from Etsy sellers within the ChatGPT interface [1][5] - Following the announcement, Etsy's stock surged nearly 16%, while Shopify's stock rose over 6%, indicating positive market sentiment towards the new feature [1] Group 3: User Experience and Technology - The instant checkout feature allows for a seamless shopping experience without redirecting users to merchant websites, enhancing user convenience [5] - OpenAI's technology framework for this feature was developed in collaboration with payment company Stripe, which also supports ChatGPT's subscription services [7][8] Group 4: Future Developments - OpenAI plans to open-source the framework to help merchants integrate the feature more quickly and explore various use cases beyond e-commerce [8] - The integration of ChatGPT into platforms like Etsy and Shopify presents a significant opportunity for these e-commerce platforms to reach a vast pool of potential consumers [8]

Core Insights - OpenAI has announced a significant move into e-commerce by enabling direct purchases from Etsy sellers through its ChatGPT AI chatbot, which has positively impacted the stock prices of both Etsy and Shopify [1][5]. Group 1: OpenAI and E-commerce Integration - The new Instant Checkout feature in ChatGPT allows users to make single-item purchases from Etsy sellers, with plans to expand to over one million Shopify merchants [1][3]. - The integration is designed to provide organic product recommendations based on user queries, enhancing the shopping experience without leaving the chat interface [3]. Group 2: Market Reactions - Following the announcement, Etsy's stock surged by 14% to $73.06, while Shopify's stock increased by over 5% to $147.63 [5]. - The popularity of ChatGPT as a shopping tool may disrupt traditional e-commerce and online advertising models, particularly those reliant on search engines and product marketplaces [6]. Group 3: Industry Implications - Analysts suggest that this development marks a pivotal shift in the commercial structure of the Internet, moving from search-based discovery to chat-based interactions [7]. - The competitive landscape is evolving, with Google also launching its own AI-driven transaction protocol, indicating a growing trend in AI integration within e-commerce [4][7].

Company Overview - Shopify's stock has increased by approximately 85% over the last year, with more than half of those gains occurring in 2024, although the recent rise in stock price has slowed down [1][2] - The current stock price is within 15% of its all-time high from 2021, leading to an elevated valuation [2] Financial Metrics - Shopify's P/E ratio stands at 83, which is considered high for a growth stock [4] - In the first half of 2025, Shopify generated $5 billion in revenue, reflecting a 29% growth compared to the same period in 2024, while limiting expense growth to 18% [11] - The company achieved a net income of $224 million in the first half of 2025, a significant improvement from a loss of $102 million in the previous year [11] - The price-to-sales (P/S) ratio is 19, indicating that the stock may be expensive relative to its sales [12] Competitive Landscape - Shopify holds a 28% market share of online stores in the U.S., making it the largest e-commerce platform in the country, and claims about 10% of all global online stores [6] - The company operates in a highly competitive industry, with Amazon as a significant competitor, which offers a sales platform for third-party sellers and free shipping options [5] - Despite competition, Shopify has developed a competitive advantage through its versatile platform that allows merchants to customize their sites without coding knowledge and emphasizes speedy transactions [9] Strategic Positioning - Shopify has shifted its focus back to software after previously attempting to expand into logistics, which resulted in significant losses [7] - The company has created an ecosystem that supports merchants with various services, including email marketing, payments, and inventory management, enhancing site management and generating additional revenue sources [10] - The e-commerce industry is projected to grow at a compound annual growth rate (CAGR) of 19% through 2030, which may alleviate some competitive concerns for Shopify [6] Future Outlook - While the current valuation may suggest a potential slowdown in stock performance, Shopify is well-positioned to capture growth in the rapidly expanding e-commerce market [13] - Long-term investors may still anticipate future stock gains as more merchants opt to operate within Shopify's ecosystem, despite the high P/S ratio indicating that the stock price could be ahead of fundamentals [14]

Group 1: Shopify - Shopify has shown tremendous growth, with stock returns exceeding 400% since 2022, and continues to have significant expansion opportunities [4] - The majority of Shopify's revenue comes from merchant solutions, which grew 36% year over year in Q2 to over $2 billion [5] - The company is leveraging artificial intelligence to enhance its offerings, such as launching Catalog to integrate millions of products into AI-powered shopping apps [6] - Shopify's strong brand and competitive advantage stem from its innovative solutions that help merchants increase sales, creating a powerful incentive to attract more businesses [7] - Total spending by Shopify merchants in the U.S. is projected to be only 12% of the e-commerce market by 2025, indicating substantial growth potential [8] Group 2: RH (Restoration Hardware) - The Federal Reserve's recent interest rate cuts are expected to revitalize the housing market, which has been stagnant due to high rates [10] - RH reported an 8.4% increase in revenue to $899.2 million in its recent Q2 earnings, benefiting from its focus on the higher-end market [12] - The company's business model has significant leverage, and margins could expand with increased demand, trading at a P/E of less than 20 based on fiscal 2027 estimates [13] Group 3: Carnival - Carnival has experienced a strong recovery, with record metrics in revenue, operating income, and customer deposits, indicating sustained demand [14][15] - Customer deposits reached $8.5 billion, with 93% of 2025 occupancy already booked, and 2026 demand aligning with historical highs [16] - Despite a staggering debt of over $27 billion, lower interest rates are facilitating debt repayment, with Carnival refinancing $7 billion at better rates [18][19]

Core Insights - Investing in stocks can significantly enhance retirement savings, but selecting the right stocks is crucial to avoid wealth destruction [1] Group 1: Shopify - Shopify has shown strong market performance, re-establishing itself as a leader in e-commerce with over 12% market share by gross merchandise volume (GMV) [4][5] - The e-commerce industry is projected to grow rapidly, and Shopify's revenue model includes subscription services and merchant solutions, which will drive higher GMV and revenue [5][6] - The company is nearing consistent profitability due to key business changes, with potential to double investors' capital by 2030, supported by international expansion opportunities [6][8] Group 2: Alphabet - Alphabet has mitigated significant risks by avoiding severe sanctions from an antitrust case, allowing it to focus on growth [9] - In Q2, Alphabet's revenue increased by 14% year-over-year to $96.4 billion, with earnings per share rising approximately 22% to $2.31 [10] - The company is well-positioned to benefit from cloud computing and AI, with Google Cloud revenue growing 32% year-over-year to $13.6 billion, driven by strong demand for AI services [11][12] - Alphabet's long-term growth opportunities include its autonomous vehicle business, Waymo, and other innovations, positioning it for strong performance through the end of the decade and beyond [13][14]

Core Insights - Shopify has shown remarkable recovery and growth, with shares increasing 399% over the past three years, although they remain 15% below their peak from November 2021 [1][3] - The company reported strong financial results for Q2, with a 31% year-over-year growth in gross merchandise sales and revenue, alongside a 32% increase in adjusted net income, surpassing Wall Street expectations [4] Financial Performance - Shopify's gross merchandise sales and revenue both grew by 31% year-over-year in Q2, indicating robust business momentum despite macroeconomic uncertainties [3][4] - The adjusted net income for the same period increased by 32%, reflecting strong profitability [4] Market Position - Since its inception, Shopify has facilitated $1.2 trillion in commerce, showcasing its extensive reach with millions of merchants across over 175 countries [4] - The stock is approaching its previous all-time high, needing only an 18% increase from current levels to reach that mark [5] Valuation Concerns - Despite the strong growth, Shopify's shares are trading at a high price-to-sales multiple of 18.6, which is 156% higher than three years ago, indicating potential valuation concerns [5]