Shopify Inc. (SHOP) had a rough Tuesday, with shares sliding nearly 8% as investors decided that maybe paying up for growth isn't the smartest move right now. The curious part? This wasn't a tech-wide selloff. The Nasdaq actually eked out a 0.12% gain, and the Technology sector rose 0.64%. So what gives?

It looks like a classic case of profit-taking in a stock that had a monster run. Shopify shares surged more than 25% in August, pushing the price above $158. When a stock moves that fast, some investors start to get nervous and lock in gains. The broader market's weak breadth (an advance-decline ratio of 0.6, with seven of 11 sectors lower) suggests a cautious mood, but energy and utilities were the leaders, up 1.19% and 1.07%, respectively. That's a classic rotation into safer, lower-multiple sectors, which puts pressure on high-flying growth names like Shopify.

Adding to the narrative, Cathie Wood's ARK Invest decided to take some chips off the table. On Sept. 2, ARK sold 40,392 Shopify shares across its funds. The ARK Innovation ETF (ARKK) offloaded 35,322 shares, while the ARK Next Generation Internet ETF (ARKW) sold another 5,070. It's not a massive selloff, but when a well-known growth investor trims, the market takes notice.

Here's the thing: Shopify's underlying business is actually doing great. Second-quarter revenue jumped 34% year-over-year to $3.58 billion. That's solid growth by any measure. But the stock trades at a price-to-earnings ratio of around 98, which is rich. When you're paying that much for future earnings, any hint of a risk-off mood can hit the stock hard. It's like owning a sports car: it's fast and fun, but it guzzles gas, and when fuel prices go up, you feel it.

Technically, the picture is mixed. The longer-term trend is still intact. Shopify sits 2.2% above its 200-day simple moving average (SMA) of $131.27 and 8.2% above its 100-day SMA of $123.96. But the near-term momentum has cooled. Shares are 9.6% below the 20-day SMA of $148.48, and the MACD is below its signal line with a negative histogram. The stock formed a golden cross in August when the 50-day SMA crossed above the 200-day SMA, which is usually a bullish sign. But Tuesday's drop puts the 50-day SMA (around $134.50) in focus. If that level breaks, we could see more downside. Key resistance is at $159, with support at $110.50.

Analysts, for the most part, remain bullish. The consensus rating is Buy, with an average price target of $167.38. Rosenblatt initiated coverage on Aug. 20 with a Buy and a $175 target. Wells Fargo maintained an Overweight rating and raised its target to $180 on Aug. 7. Canaccord Genuity also maintained a Buy and lifted its target to $180 on Aug. 6. So the sell-side sees value, but the market is clearly having second thoughts about the valuation.

If you look at the scorecard, Shopify gets a Momentum score of 67.37 and a Growth score of 71.38, which are solid. But its Value score is a paltry 8.37. That's a big red flag for value-conscious investors. It's a great company, but you're paying a premium for that greatness.

For ETF investors, Shopify has a notable presence in a few funds. It's a 3.48% weighting in the Baron Technology ETF (BCTK), a 2.32% weighting in the WisdomTree Global ex-US Quality Growth Fund (DNL), and a 0.58% weighting in the ProShares Ultra QQQ Equal Weight ETF (EQQQ). So if you own those, you're indirectly exposed to Shopify's swings.

At the time of publication Tuesday, Shopify shares were down 7.67% at $133.96. That's a significant drop, but it's worth remembering that the stock is still up substantially from its 52-week lows. The question is whether this is a healthy pullback or the start of a deeper correction. Given the strong fundamentals and analyst support, it might just be a breather. But in a market that's increasingly skittish about high valuations, anything can happen.