5 Cathie Wood Stocks That Can Rebound in 2023

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1. Shopify Inc. (NYSE:SHOP)

YTD Share Price Decline as of June 28: 74.30%

Number of Hedge Fund Holders: 72

Shopify Inc. (NYSE:SHOP) is a Canadian multinational e-commerce company. Cathie Wood’s ARK Investment Management owns 903,063 shares of Shopify Inc. (NYSE:SHOP) as of Q1 2022, worth $610.4 million, representing 2.54% of the total portfolio. The hedge fund boosted its stake in the company by 27% in the March quarter. Shopify Inc. (NYSE:SHOP) stock has dropped over 74% YTD as of June 28. 

On June 24, Morgan Stanley analyst Keith Weiss resumed coverage of Shopify Inc. (NYSE:SHOP) with an Equal Weight rating and a $450 price target. The analyst noted that Shopify Inc. (NYSE:SHOP)’s “strong positioning against large longer-term opportunities” like Fulfillment is potentially undervalued right now, but macro risks, a normalization of e-commerce spending, and limited transparency from the company “present near-term risks”, the analyst added.

Among the hedge funds tracked by Insider Monkey, 72 funds were long Shopify Inc. (NYSE:SHOP) at the conclusion of Q1 2022, compared to 86 funds in the preceding quarter. Stephen Mandel’s Lone Pine Capital is one of the leading stakeholders of the company, with more than 1 million shares worth $699 million. 

Here is what Polen International Growth Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q1 2022 investor letter:

“We added to the Portfolio’s position in e-commerce company Shopify in the first quarter after a sharp share-price decline. This brought the Portfolio’s weighting in the company to 2%. We believe Shopify provides a uniquely positioned platform, and we like the company’s strategy of continuing to invest in its business in an effort to strengthen its competitive advantages. The market’s affinity for businesses like Shopify may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”

You can also take a look at 10 Best Stocks To Buy In 2022 According To Billionaire Mario Gabelli and 6 Defensive Stocks to Buy in 2022 According to Seth Klarman

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