SHOP Stock Drops Over 7% On Meta Pay-Muse Image — Why Rosenblatt Says Shopify Selloff Is Unjustified

• Rosenblatt linked the weakness in SHOP shares on Wednesday to a social media image showing Meta Pay as a Muse checkout option.
• Muse told Rosenblatt that Meta Pay uses the same wallet customers already use across Facebook, Instagram and WhatsApp.
• Rosenblatt does not currently see Meta Pay as disruptive to Shopify Payments or Shop Pay.

Shopify shares fell as much as 7% on Wednesday, reversing part of a two-day rally on its Muse partnership, after an X screenshot showed Meta Pay as a checkout option alongside Link by Stripe and its own Shop Pay, raising concerns about added competition.

Rosenblatt analyst Scott Devitt said the selloff linked to Meta Pay’s appearance on Muse was not justified, adding that Meta Pay is an extension of Meta’s existing wallet rather than a new threat to Shopify Payments.

At the time of writing, SHOP shares were trading around 3% lower.

Rosenblatt Sees Limited Threat

Rosenblatt contacted Muse to understand the addition of Meta Pay, according to TheFly. Muse said Meta Pay is Meta’s own wallet, the same one used for payments on Facebook, Instagram and WhatsApp. It said customers who have saved a card for a Facebook Marketplace purchase or an Instagram shop can use those saved cards when making a purchase through Muse.

Muse also said it cannot see card numbers, with the payment information remaining in the user’s Meta Accounts Center, where the feature can be managed or disconnected.

Rosenblatt concluded that Meta Pay “does not seem to be disruptive to Shopify Payments or Shop Pay in its current form” and therefore does not view the more than 7% decline as warranted.

SHOP, META’s Muse Partnership

The Wall Street Journal reported earlier this week that Meta and Shopify plan to let Muse place orders at Shopify-powered stores. Checkout is meant to run through Shop Pay, Shopify’s saved-details, one-tap payment tool. CEO Tobias Lütke said on X that the aim is an “easy and delightful way to shop and check out with Muse.”

The news spurred a two-day rally on Monday and Tuesday. 

 SHOP Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for SHOP remained ‘bullish,’ unchanged over the past 24 hours, while message volume remained ‘high’ at the time of writing.

SHOP shares have lost around 12% year-to-date.

Also See: These 2 Stocks Are Bucking The Broader Market Selloff To Hit New Multi-Year Highs — Here’s What’s Driving The Enthusiasm

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