Investor rotation away from enterprise software toward AI-linked semiconductors weighed on growth stocks, including Shopify, in Q1 2026.
Shopify (SHOP) underperformed in Q1 2026 as broader growth stocks faced pressure from shifting investor sentiment. The S&P 500 fell 4.33% in the quarter, while the Russell 1000 Growth index declined 9.78%, driven by stagflation fears and rising energy prices.
Enterprise software companies, perceived as vulnerable to AI disruption, saw heavy selling. Meanwhile, semiconductor firms tied to AI infrastructure spending outperformed, exacerbating the divergence. The Federal Reserve’s unchanged rates in January and February added to market volatility.
RiverPark Advisors noted the fund’s software holdings were sold off, while its underweight in semiconductors hurt performance. Despite the challenges, the firm maintained confidence in its long-term portfolio valuations.