{"id":192364,"date":"2025-09-01T20:46:17","date_gmt":"2025-09-01T20:46:17","guid":{"rendered":"https:\/\/www.europesays.com\/us\/192364\/"},"modified":"2025-09-01T20:46:17","modified_gmt":"2025-09-01T20:46:17","slug":"shop-lulu-qsr-fears-of-recession-grow-in-canada-as-economy-contracts","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/192364\/","title":{"rendered":"SHOP, LULU, QSR: Fears of Recession Grow in Canada as Economy Contracts"},"content":{"rendered":"<p>Fears of a <a data-autolink=\"true\" href=\"https:\/\/www.tipranks.com\/economic-indicators\" rel=\"nofollow noopener\" target=\"_blank\">recession<\/a> are growing in Canada after the country\u2019s economy contracted in this year\u2019s second quarter. <\/p>\n<p>Elevate Your Investing Strategy:<\/p>\n<ul style=\"padding-top: 5px;\">\n<li> Take advantage of <a data-link=\"article_promo\" href=\"https:\/\/lp.tipranks.com\/july-2025-50off\/?llf=rss&amp;timer=on&amp;coupon=INTRO50P\" rel=\"nofollow noopener\" target=\"_blank\"> TipRanks Premium at 50% off! <\/a> Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.\n<\/li>\n<\/ul>\n<p>The latest data showed that <a href=\"https:\/\/www.tipranks.com\/news\/shopify-stock-shop-bulls-brush-off-sticky-inflation-data\" rel=\"nofollow noopener\" target=\"_blank\">Canada\u2019s economy contracted 1.6%<\/a> on an annualized basis in Q2 after growing an annualized 2% in the first three months of 2025. The contraction has generated headlines about a looming recession, as steep U.S. tariffs start to impact businesses and consumers. <\/p>\n<p>Canada\u2019s economy fell into negative territory during the second quarter largely because of a drop in exports and decreased business investment. The U.S. remains Canada\u2019s biggest export market, with 75% of Canadian goods and materials bound for the American market. <\/p>\n<p><strong>Darkening Clouds<\/strong><\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/news\/shopify-shop-at-a-crossroads-as-dovish-fed-hopes-meet-tariff-headwinds\" rel=\"nofollow noopener\" target=\"_blank\">Fears of a recession <\/a>have dragged leading Canadian stocks lower, including e-commerce company Shopify <a data-ticker=\"SHOP\" href=\"https:\/\/www.tipranks.com\/stocks\/shop\" rel=\"nofollow noopener\" target=\"_blank\">(SHOP)<\/a>, clothing retailer Lululemon Athletica <a data-ticker=\"LULU\" href=\"https:\/\/www.tipranks.com\/stocks\/lulu\" rel=\"nofollow noopener\" target=\"_blank\">(LULU)<\/a>, and Restaurant Brands International <a data-ticker=\"QSR\" href=\"https:\/\/www.tipranks.com\/stocks\/qsr\" rel=\"nofollow noopener\" target=\"_blank\">(QSR)<\/a>, which owns the Burger King and Tim Hortons chains.<\/p>\n<p>Canada\u2019s exports, in particular, took a hit during Q2, falling a total of 7.5% after increasing 1.4% in the first quarter. The Q2 decline was due entirely to U.S. tariffs. Exports of passenger cars and light trucks dropped 25% in the quarter, while exports of industrial machinery, equipment, and parts fell 19%.<\/p>\n<p>The uncertainty caused by the U.S. tariffs has also led to a decline in business investment within Canada. Investments in machinery and equipment fell 0.6% in the second quarter of the year, as every group recorded declines except computer equipment. The second quarter was the slowest pace of investment in machinery and equipment since 2016.  <\/p>\n<p><strong>Is SHOP Stock a Buy?<\/strong><\/p>\n<p>The stock of Shopify has a consensus Moderate Buy rating among 32 Wall Street analysts. That rating is based on 19 Buy and 13 Hold recommendations issued in the last three months. The <a href=\"https:\/\/www.tipranks.com\/stocks\/shop\/forecast\" rel=\"nofollow noopener\" target=\"_blank\">average SHOP price target <\/a>of $164.15 implies 16.19% upside from current levels.  <\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/stocks\/shop\/forecast\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" width=\"1020\" height=\"850\" src=\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/image-58.png\" alt=\"\" class=\"wp-image-2379295\"  \/><\/a><\/p>\n<p><strong><a href=\"https:\/\/www.tipranks.com\/stocks\/shop\/forecast\" rel=\"nofollow noopener\" target=\"_blank\">Read more analyst ratings on SHOP stock<\/a><\/strong><\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/glossary\/d\/disclaimer-disclosure\" style=\"margin-right: 32px;\" rel=\"nofollow noopener\" target=\"_blank\">Disclaimer &amp; Disclosure<\/a><a href=\"https:\/\/www.tipranks.com\/glossary\/c\/contact-editor\" rel=\"nofollow noopener\" target=\"_blank\">Report an Issue<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Fears of a recession are growing in Canada after the country\u2019s economy contracted in this year\u2019s second quarter.&hellip;\n","protected":false},"author":3,"featured_media":192365,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-192364","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115131002612789068","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/192364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=192364"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/192364\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/192365"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=192364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=192364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=192364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}