Analysts Say Buy These 5 Stocks Despite Earnings Miss

4. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 72   

Shopify Inc. (NYSE:SHOP) provides a commerce platform and related services. In late July, the firm posted earnings for the second quarter of 2022, reporting a loss per share of $0.03 and a revenue of $1.3 billion. The revenue was up more than 17% compared to the revenue over the same period last year but missed analyst expectations by $30 million. On July 27, Jefferies analyst Samad Samana maintained a Buy rating on Shopify Inc. (NYSE:SHOP) stock and lowered the price target to $40 from $47.5.

At the end of the first quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Shopify Inc. (NYSE:SHOP), compared to 86 in the preceding quarter worth $12 billion. 

In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:

“We added to the Portfolio’s position in e-commerce company Shopify Inc. (NYSE:SHOP) 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 Inc. (NYSE:SHOP) may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”