5 Best Gig Economy Stocks To Buy

In this article, we discuss the 5 best gig economy stocks to buy. To read the detailed analysis of the gig economy market, go directly to the 12 Best Gig Economy Stocks To Buy.

5. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 68

Shopify Inc. (NYSE:SHOP) operates a marketplace that is the digital platform of choice for many gig workers where they set up their online stores to sell their goods and services. Shopify Inc. (NYSE:SHOP) was part of 68 hedge funds’ portfolios in Q4 of 2023 with a total stake value of $5.94 billion. GQG Partners is the most significant shareholder in the company and has a position worth $546.6 million, as of December 31, 2023.

On April 29, Citi upgraded Shopify Inc. (NYSE:SHOP) to Buy from Neutral and increased the price target to $105 from $93. It is one of the best gig economy stocks to buy.

Brown Capital Management stated the following regarding Shopify Inc. (NYSE:SHOP) in its fourth quarter 2023 investor letter:

“Among the top contributors for the fourth quarter were Shopify Inc. (NYSE:SHOP) and Manhattan Associates (MANH). Shopify is the second-largest cloud-based e-commerce software platform in the U.S., with 10% market share. Shopify provides upstarts and Fortune 500 companies alike with turnkey solutions to help individuals and businesses run their online stores. The range of services includes web design, inventory management, payment processing, analytics and reporting, among others. We believe the company is the most attractive alternative to Amazon and has an addressable market greater than $150 billion.

Shopify released stellar results this quarter, growing revenue 25% with meaningful margin expansion and management indicating more to come. Notably, the third quarter was Shopify’s first full quarter after deciding in May 2023 to abandon its in-house fulfillment and logistics ambitions which put significant pressure on margins. Additionally, competitive concerns from Amazon’s “Buy With Prime” initiative that launched in April 2022 also abated. The feature allows merchants selling outside of Amazon to access its fulfillment network and enjoy Prime benefits such as free deliveries and returns, posing a threat to Shopify’s payment-processing revenue. Instead of duking it out, Shopify and Amazon reached a partnership agreement in September that preserves customer choice and, to our knowledge, keeps Shopify’s payment revenues intact. With these key concerns in the rear-view mirror, Shopify should have a clear path to double-digit revenue growth and margin expansion for years.”