Shopify, Etsy Stocks Surge on OpenAI Deal Despite Analyst Caution

Etsy and Shopify Stocks Surge After OpenAI Partnership to Enhance E-commerce with ChatGPT

  • Shopify and Etsy shares rose 6.2% and 15.8% after announcing an e-commerce partnership with OpenAI.
  • OpenAI launched Instant Checkout, letting users buy directly from ChatGPT, starting with U.S. Etsy sellers and soon adding over a million Shopify merchants.
  • Retail trader sentiment turned highly bullish following the news, but some analysts voiced caution over sustainability.
  • Morgan Stanley raised concerns that the sharp rise in Etsy‘s stock price may be premature and questioned long-term benefits.
  • Etsy will transfer its stock listing to the New York Stock Exchange on October 13, with its shares up over 40% for the year.

On Monday, shares of Shopify and Etsy climbed significantly after a partnership was announced with OpenAI to enable e-commerce functionality within the ChatGPT chatbot. The deal will allow users to purchase products from select merchants directly in the ChatGPT interface.

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According to official information, the new feature, called Instant Checkout, currently supports single-item purchases from U.S. Etsy sellers. OpenAI stated that merchants on Shopify such as Glossier, SKIMS, Spanx, and Vuori will soon be included. The technology is available for U.S. users of ChatGPT Plus, Pro, and free accounts, with plans to expand to multi-item carts and more regions in the future.

OpenAI reported that over 700 million people use its chatbot worldwide. Merchants pay a small fee on successful transactions, while users face no additional costs and product search results remain unaffected. In an official blog post, the company said, “U.S. ChatGPT Plus, Pro, and free users can now buy directly from U.S. Etsy sellers right in chat, with over a million Shopify merchants…coming soon.”

Despite positive retail sentiment and a surge in social discussion, some concerns have been noted. Morgan Stanley commented that while encouraged by the news, the 16% increase in Etsy stock may be “overdone” and that “it’s far less clear if agentic commerce is Etsy’s friend or foe over the long-term.” Short interest in Etsy rose to 18.8% from 16.6% earlier in the month, with some traders viewing the stock as a potential short candidate.

In related developments, Etsy announced the transfer of its common stock listing from Nasdaq to the New York Stock Exchange, effective October 13. Year-to-date, Etsy shares have gained 40.6%, while Shopify is up 40%.

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