In this article, we will be discussing 5 risky stocks to buy today, in line with the expectation of a soft landing. If you want to read our discussion on the economic stance of JPMorgan’s strategists, you can go directly to “The Fed has Overreacted”: 10 Risky Stocks to Buy Today.
5. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 60
Shopify Inc. (NYSE:SHOP) is an Ottawa, Ontario-based e-commerce company that is known for its namesake proprietary e-commerce platform for online stores and retail point-of-sales platforms. A soft landing would result in the recovery of the e-commerce sector as well.
Shopify Inc. (NYSE:SHOP) stock has lost over 70% of its value since the start of the year. However, the company is working on executing a growth strategy to achieve profitability in the long run. Shopify Inc. (NYSE:SHOP) is also undergoing leadership changes as CFO Amy Shapero will be replaced by a seasoned Morgan Stanley banker Jeff Hoffmeister following the company’s Q3 results on October 27. Meanwhile, COO Toby Shannan will hand over his position to Vice President of Product and Merchant Services, Kaz Nejatian. According to observers, the company has made the move to change the CFO to focus more on investor engagement and might also look into providing financial guidance formally. Following all these developments, Ken Wong at Oppenheimer maintained an Outperform rating on Shopify Inc. (NYSE:SHOP) stock with a target price of $45 on September 8.
Here’s what Rowan Street Capital LLC said about Shopify Inc. (NYSE:SHOP) in its Q2 2022 investor letter:
“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.”
ARK Investment Management held over 1 million shares of Shopify Inc. (NYSE:SHOP) as of Q2 2022.
