5 Best Long-Term Stocks to Buy Now

3. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 72

Share price as of August 8: $40.81

Shopify Inc. (NYSE:SHOP) is a commerce company providing a platform enabling merchants to display, manage, market, and sell products through a range of channels. The company operates in Canada, the US, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

RBC Capital currently holds an Outperform rating on Shopify Inc. (NYSE:SHOP) shares, placed by analyst Paul Treiber this July. Treiber also placed a $60 price target on the stock.

As of this August, Shopify Inc.’s (NYSE:SHOP) three-year sales growth CAGR stood at 53%. The stock also broke to a three-month high on August 3, rising 9.6% after a Meta Platforms announcement that Facebook Live Shopping will be gone by October 1, a development that may lead stocks like Shopify Inc. (NYSE:SHOP) to perform exceptionally in the long-term. In July, analyst Andrew Bauch at SMBC Nikko also commented that he views Shopify Inc. (NYSE:SHOP) as a premium long-term asset.

Shopify Inc. (NYSE:SHOP) had 72 hedge funds long its stock in the first quarter. Their total stake value was $5.8 billion.

Rowan Street Capital LLC, an investment management firm, mentioned Shopify Inc. (NYSE:SHOP) in its second quarter 2022 investor letter. Here’s what they said:

Tobias Lutke, Shopify (NYSE:SHOP) Founder and CEO

When Tobias Lütke opened an online snowboarding store in 2004, he realized how painfully cumbersome e-commerce software was. So he decided to create Shopify – a platform that made it easy for anyone to open up an online store.

Tobi has built Shopify into one of the most popular e-commerce platforms in the world, with $175 billion in GMV (Gross Merchandise Value) and $4.6 billion in revenues in 2021. SHOP went public in 2015, when revenues were just lightly above $200 million, and the stock is up 1,233% since its IPO. Shopify stock peaked in November 2021 (traded at astronomical 47x sales), which coincided with peak enthusiasm for the tech-driven, “stay-home” stocks. Since then, the stock is down almost 80% and is currently trading at just 6x 2023E sales. We believe that Mr. Market is offering us an exceptional value, at current price levels, for an exceptional company led by a very talented, visionary founder/CEO.”