Canada Stocks: TSX edges lower as Shopify's earnings fail to impress

Shopify

11/02/2026 16:23

TSX down 0.5%

Tech stocks fall 6%

Shopify down 9.7% despite strong earnings

Allied Properties Real Estate Investment Trust plunges 27%

Updates throughout, adds details and analyst comments

By Utkarsh    Hathi

Feb 11 (Reuters) -
Canada's main stock index fell after making early gains on Wednesday, hurt by technology stocks that sank as Shopify's earnings failed to impress amid a renewed software selloff, while investors digested U.S. jobs data.

The S&P/TSX composite index .GSPTSE was down 0.47% at 33,100.45 points, as of 10:44 a.m. ET, after briefly hitting an intra-day record high.

The tech index .SPTTTK led sectoral losses with a 5.4% drop, after Shopify shares SHOP.TO slumped 9% despite an upbeat first-quarter revenue forecast.

Shopify's stock, which was down 14% last week, has been under pressure in recent weeks amid fears that artificial intelligence tools could threaten traditional software businesses.

"Software is getting assassinated again today.... Shopify, unfortunately, is software that's used to get businesses online," said Dennis Dick, chief strategist at Stock Trader Network.

"So we have this separation happening in this market right now. We have AI winners and AI losers. And it's very clear that software names are unfortunately falling into the AI loser camp."

Computer Modelling Group CMG.TO fell 15% after its third-quarter revenue declined 9%.

U.S. employers added 130,000 jobs in January, more than the expectation of 70,000 from economists surveyed by Reuters.

The jobless rate fell to 4.3%, suggesting a steady labor market and strengthening the case for the Federal Reserve to keep rates unchanged.

Markets cut the probability of an April rate cut to one in five and assigned almost a 40% chance that the Fed holds rates in June.

The energy sector .SPTTEN gained 1.8% as oil prices climbed more than 2.5% on the potential of an escalation in U.S.-Iran tensions. Consumer staples .GSPTTCS jumped 1.3%.

Among notable movers, Allied Properties Real Estate Investment Trust's AP_u.TO shares plunged 27% after the company announced a leadership update and equity financing. The stock pulled down the real estate index .GSPTTRE by 2%.

Meanwhile, U.S. President Donald Trump is privately musing about exiting the U.S.-Mexico-Canada trade pact, injecting further uncertainty about the deal's future, Bloomberg News reported on Wednesday.

 (Reporting by Utkarsh Tushar Hathi; Editing by Shreya Biswas)

 ((utkarshtushar.hathi@thomsonreuters.com))