5 Best Stocks to Buy for the Next Ten Years

Below is the list of the 5 best stocks to buy for the next ten years based on Cathie Wood’s Q2 portfolio. For a comprehensive list and detailed discussion please see 10 Best Stocks to Buy for the Next Ten Years.

5. Shopify Inc. (NYSE: SHOP)

Number of Hedge Fund Holders: 85

The e-commerce platform Shopify Inc. (NYSE: SHOP) is a member of Cathie Wood’s stock portfolio since 2017. What’s more, her firm lifted its stake in Shopify by 13% to 1.21 million shares in the second quarter. Shopify’s stock price rebounded sharply in the last two months after experiencing volatility early this year. 

The Canadian multinational commerce platform generated $1.11 billion in revenues in the second quarter, up 55.4% from the past year period, and topped the consensus estimate by $60 million. Furthermore, with the strategy of reinvesting profits back into the business, the company expects to extend the revenue growth momentum in the quarters ahead. 

In the Q2 2021 investor letter of RiverPark Funds, the fund mentioned Shopify and discussed its stance on the firm. Here is what RiverPark Funds stated: 

“SHOP shares were our next top contributor. Shopify’s fundamentals remain stellar, with first quarter results that included $37 billion of merchandise sales, a 114% year-over-year increase, leading to 110% revenue growth for the company. Subscription solutions revenue grew 71% year over year, and SHOP also showed tremendous operating leverage, with adjusted operating expenses decreasing from 58% of revenue for 1Q20 to 36% for 1Q21.

Last year, $120 billion (9%) of US retail e-commerce sales flowed through SHOP, which was second only to Amazon and up from $61 billion for 2019. The company is still enjoying significant tailwinds as retail merchants of all sizes rapidly adopt SHOP’s software tools to display, manage and sell their products across a dozen different sales channels. We believe that the overall growth of e-commerce, combined with the development of new products and services at SHOP, will continue to drive revenue growth of greater than 50% per year over the next several years, accompanied by operating margin expansion to more than 20%, up from 15% last year.”