15 Best Growth Stocks to Buy for the Next 3 Years

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9. Shopify Inc. (NASDAQ:SHOP)

3-Year Revenue CAGR: 24.41%

Number of Hedge Fund Holders: 64

Shopify Inc. (NASDAQ:SHOP) is a commerce technology company that provides tools to start, scale, market, and run a business of various sizes. It offers the Shopify platform that enables merchants to manage products & inventory, process orders & payments, fulfill & ship orders, build customer relationships, source products, and use analytics for running businesses.

The company’s Merchant Solutions segment made $2.8 billion in Q4 2024 revenue, which was up 33% year-over-year. This was fueled by the 26% increase in Gross Merchandise Volume (GMV) processed by Shopify merchants and the expanding adoption of Shopify Payments, which processed $61 billion of GMV in Q4, marking an improvement of 35%. This figure represented 64% of the total GMV.

The increasing penetration of Shop Pay, which accounted for 41% of Gross Payment Volume (GPV) in Q4, also contributed to the segment’s growth. Shopify Inc. (NASDAQ:SHOP) now expects Merchant Solutions to grow quicker than Subscription Solutions. This outperformance is expected to be driven by the ongoing strength of Shopify Payments, the increasing array of Merchant Solutions products.

Artisan Global Opportunities Fund stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its Q4 2024 investor letter:

“Among our top Q4 contributors were Atlassian and Shopify Inc. (NASDAQ:SHOP). Our conviction in Shopify grew after it decided to exit the logistics business in favor of a capital-light partnership model, which we viewed as significantly narrowing the downside range of outcomes and allowed it to focus on what it does so well: developing great e-commerce software solutions for brands of all sizes. We have been encouraged by Shopify’s subsequent pace of innovative new product enhancements, including using AI assistants to help brands run their businesses. Shares rallied after the company reported strong earnings results, including 24% growth in gross merchandise volume, and management raised its forward guidance.”

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