11 Best High Growth Stocks to Buy Now

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4. Shopify Inc. (NASDAQ:SHOP)

5-Year Revenue Growth Rate: 41.27%

Number of Hedge Fund Holders: 91

Shopify Inc. (NASDAQ:SHOP) ranks among the best high growth stocks to buy now. Citizens reaffirmed its $185 price target and Market Outperform rating on Shopify Inc. (NASDAQ:SHOP) on December 4, emphasizing the company’s impressive European performance as a major factor in future profitability.

This came after Shopify’s Q3 results, in which the company continued to expand its gross merchandise volume and revenue by more than 30% each. In Q3, 21% of Shopify’s entire revenue came from Europe, compared to less than 18% in 2023.

Since debit and credit card interchange fees differ, Citizens stressed that European payments are much more valuable to Shopify Inc. (NASDAQ:SHOP). The firm stated that gross profit margins on gross payment volume for Basic, Grow, and Advanced sellers in Europe could be around four times greater than for American retailers.

According to the firm, this expansion is “an underappreciated tailwind for profitability,” adding that Shopify Inc. (NASDAQ:SHOP) has ample space to continue acquiring merchants in the area.

In addition, the firm highlighted Shopify’s growing marketing effectiveness in Europe, where the company is still in the early phases of growing its market share, in contrast to its North American operations.

Shopify Inc. (NASDAQ:SHOP) is a global commerce company that provides tools and software for businesses to sell products online, in stores, and through social media or marketplaces.

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