Lufax Capital downgraded Shopify's rating to Hold due to valuation concerns, causing its stock price to fall.

In pre-market trading on Tuesday, after RBC Capital Markets downgraded Shopify stock from "buy" to "hold" due to valuation concerns, the US-listed company's stock price fell by as much as 2.5%. Analyst Anthony Chukumba pointed out that the core reason for the downgrade was valuation issues, rather than a more pessimistic view of the company's fundamentals. The current valuation level is in line with RBC Capital Markets' optimistic expectations. Chukumba stated, "Before we have a more positive view on the stock again, we will wait for a more attractive entry point." Note: According to analyst ratings tracked by Bloomberg, Shopify currently has 37 "buy" ratings, 17 "hold" ratings, and 1 "sell" rating.