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Shopify (SHOP) stock opened higher on Wednesday after the e-commerce firm said it has acquired Tailwind Labs, the company behind the widely used Tailwind CSS. The announcement is significant for SHOP, given that Tailwind CSS is installed more than 110 million times per week and is used by prominent names like ChatGPT, Cloudflare (NET), Reddit (RDDT), and X.

That said, Shopify shares have reversed their intraday gains in recent hours and are now headed to end the Sept. 9 session down more than 5%.

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In its press release, Shopify confirmed that Tailwind CSS will remain open source and MIT-licensed, and its existing team will continue to maintain the framework.

SHOP stock pushed higher initially because the acquisition could strengthen the firm's storefront, checkout, and broader developer ecosystem.

Tailwind is already a significant part of Shopify's tech stack as it positions itself around agentic commerce and artificial intelligence (AI) driven shopping experiences.

However, investors shouldn't expect this deal to directly boost SHOP's earnings or revenue.

Also on Wednesday, Piper Sandler issued a bullish note in favor of Shopify shares, raising its price target to $180, which signals potential upside of more than 40% from here.

The investment firm expects SHOP to grow revenue by 32% year-on-year to $19.5 billion in 2027, and expand its free cash flow margins by about 170 basis points annually over the next three years.

Importantly, Piper Sander analysts believe the firm's existing merchant base will contribute more to its future growth than net-new merchants.

On the flip side, however, Shopify has a history of losing about 1.5% on average in September and another 1.37% in October โ€” a seasonal pattern that dulls its near-term appeal.

Investors should note that Piper Sandler is not alone in recommending owning SHOP shares at the current price.

According to Barchart, the consensus rating on Shopify sits at "Strong Buy," with the mean price target of about $175 indicating it could rally significantly through the remainder of 2026.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com