Shopify’s (SHOP) recent deal with Meta (META), along with SHOP’s other AI-related initiatives, may cause the e-commerce giant’s top-and-bottom-line growth to meaningfully accelerate over the long term. However, with the company’s competitors also utilizing AI to boost their businesses, SHOP’s market share may not rise a great deal.

Additionally, the valuation of SHOP stock is quite high and consequently already prices in some acceleration in the company’s expansion. Finally, SHOP stock has, despite some good days the past month, not performed well in recent weeks, indicating that the Street does not have an especially favorable view of the shares at their current levels.

Under the agreement, Meta allowed its AI agent Muse to carry out sales on Shopify, browse merchants, and execute autonomous transactions via Shop Pay. Since Muse is currently the most popular free app on Apple’s iOS, it can draw a meaningful number of new customers. Shopify has also granted millions of merchants access to AI channels like ChatGPT, Microsoft Copilot, and Google search.

Meanwhile, e-commerce competitors are actively pursuing their own solutions: Amazon relies on its proprietary AI assistant, while Best Buy is partnering with OpenAI to integrate ChatGPT. Given the high forward P/E ratio of 88x, a 7.5% decline in the stock between August and September, and stiff competition, SHOP stock may not outperform in the near-to-medium term, suggesting investors should wait before taking a position.