Shopify will have a tough time adjusting to a challenging e-commerce environment after enjoying a pandemic boom, according to Piper Sandler. Analyst Clarke Jeffries downgraded shares of Shopify to neutral from overweight, noting that the company is dealing with greater inflation, currency challenges and tough comparisons after experiencing a surge in online consumer spending during the height of the pandemic. “Q2 results point to a volatile path ahead for post-COVID Shopify as the company adjusts to ecommerce normalization while balancing internal and external dynamics that complicate the near-term growth & profitability outlook,” Jeffries wrote in a Thursday note. Piper Sandler trimmed its price target to $32 from $38. The new price target is 9% below where shares closed Wednesday. Shopify reported an unexpected loss for the quarter, with revenue coming in below expectations as well . The company also warned that rising prices would continue to dampen consumer spending. This week, the company also troubled investors after saying it will lay off one-tenth of its workforce . “While the outlook held some positive nuggets (higher merchant additions in 2H), the quarterly results point to an ecommerce environment that continues to deteriorate YTD,” the note read. “Ultimately, we see the balancing act of growth investments & efficiency targets as posing new execution risks – on top of navigating a normalization in ecom growth rates that we do not yet have visibility into stabilizing.” To be sure, some investors are taking advantage of the volatility to scoop up shares. Cathy Wood’s Art Invest bought $50 million in Shopify on Tuesday, after it fell on the layoff news. Shopify dropped more than 3% in Thursday premarket trading. —CNBC’s Michael Bloom contributed to this report.