5 Best Aggressive Stocks to Buy Now

3. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 62      

Shopify Inc. (NYSE:SHOP) is a commerce company that provides a commerce platform and services worldwide. On November 21, Shopify unveiled that it is testing a new feature in its app that allows customers to search across all merchants on the platform. Search for anything enables customers to search for items previously purchased, products sold by the merchants and merchants matching the search term.

On October 28, Wells Fargo analyst Jeff Cantwell maintained an Overweight rating on Shopify Inc. (NYSE:SHOP) stock and raised the price target to $42 from $38, highlighting that the company reported strong third-quarter results.

Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Shopify Inc. (NYSE:SHOP) with 14.5 million shares worth more than $391.5 million.  

In its Q3 2023 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:

“Shopify Inc. (NYSE:SHOP) is a leading e-commerce platform supporting over 2 million merchants with software, online storefronts and payments technology. Like Uber, Shopify returned to the mid-cap territory during Q2 as the company’s profit cycle and share price faced significant pressure. Earlier this year, the company began a phase of investments to support a range of future growth drivers, including Shopify Plus for larger brands, logistics services, international expansion, point-of-sale payments and social media-based commerce. With high inflation putting pressure on consumer spending, and with e-commerce activity normalizing after a massive pandemic spike, Shopify’s earnings have fallen sharply. While we have outstanding questions about the likelihood of success for the company’s capital-intensive logistics investments, we decided to take advantage of the stock’s >75% YTD decline and initiate a GardenSM position at a deep discount to our PMV estimate. Our thesis is predicated on our belief there is still a long runway for commerce to move online, and Shopify is well-positioned to win a share of this market. The company has created an ecosystem of products (payment processing, financing, shipping, customer engagement tools, etc.), partners (TikTok, Google, Meta), sales channels and over 6,000 apps to help its merchants sell online and establish direct relationships with customers.”