11 Best Foreign Stocks to Buy According to Hedge Funds

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7. Shopify Inc. (NASDAQ:SHOP)

Number of Hedge Fund Holders: 77

Shopify Inc. (NASDAQ:SHOP) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On June 19, Rockcliffe Capital initiated coverage on Shopify Inc. (NASDAQ:SHOP) and gave it a “Buy” rating with a 12-month price target of $130.

Felix Gelt, the Managing Director of Research at Rockcliffe Capital, noted that Shopify Inc. (NASDAQ:SHOP) offers a unique combination of software, e-commerce, and AI. This positions the company as an important platform for the future of global retail.

Gelt also pointed out that Shopify Inc.’s (NASDAQ:SHOP) steady growth, consistent free cash flow margins, and strong investments in AI “make it a generational compounder.”

Rockcliffe Capital’s investment thesis highlighted that the company’s revenue grew by 27% year-over-year in the first quarter of 2025 to reach $2.36 billion. This growth was driven by gross merchandise value (GMV) growth and strong performance in international markets.

Shopify Inc. (NASDAQ:SHOP) also has a strong cash flow profile. The company’s management expects a free cash flow margin to stay in the mid-teens for the second quarter.

The research firm also noted that Shopify Inc. (NASDAQ:SHOP) is expected to benefit from AI and enterprise tailwinds. The company is introducing new AI tools, such as “Sidekick.” Rockcliffe Capital expects new AI tools combined with accelerated enterprise adoption to drive next-phase monetization.

Shopify Inc. (NASDAQ:SHOP) is a Canadian multinational commerce and financial technology company that offers a platform for e-commerce and a range of financial tools for merchants.

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