5 Reddit WallStreetBets Stocks That Are Rising

3. Shopify Inc. (NYSE:SHOP)

Gain in Share Price in the Last 5 Days as of March 23: 14.92%

Number of Hedge Fund Holders: 86

Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce platform that engages with merchants worldwide to provide a wide variety of retail items to its customers.  It also provides merchant and payments solutions via its website and application. Redditors are loading up on the stock, and Shopify Inc. (NYSE:SHOP) shares have gained roughly 15% in the last five days. 

Over the last month, the e-commerce sector has been entirely too volatile, given the risk sentiment emanating from the macro backdrop, specially the Russia-Ukraine war. Shopify Inc. (NYSE:SHOP) has suffered extreme fluctuation in the last month, with shares gaining almost 30% but losing close to 15% on March 21. 

On February 17, DA Davidson analyst Tom Forte lowered the price target on Shopify Inc. (NYSE:SHOP) to $800 from $1,400 and maintained a Neutral rating on the shares as he resets his view for what success looks like for Shopify Inc. (NYSE:SHOP). The analyst also reduced his long-term adjusted EBITDA margin projections to 30% from 45% on the likelihood that expenditure on sales and marketing, R&D, and G&A will be higher than his earlier forecasts. 

At the end of the December quarter, 86 hedge funds held long positions in Shopify Inc. (NYSE:SHOP), up from 73 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is the leading shareholder of Shopify Inc. (NYSE:SHOP), with a position worth approximately $2 billion. 

Here is what Davis New York Venture Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q4 2021 investor letter:

“While the above discussion of broad investment categories provides useful context, we always emphasize the old adage that investing is the art of the specific. With this in mind, an example may be helpful. Tesla, Nvidia and Shopify are three of the hottest momentum stocks in today’s market, each having compounded at triple-digit-rates over the last three years. Combined, these three have a market capitalization of roughly $2.3 trillion. In other words, should an investor happen to have a couple of trillion dollars lying around, one investment option, which we will call the Market Darlings portfolio, would be to buy 100% of these three remarkable growth companies and live off their current and future earnings.”