Baron Funds Thinks ‘Shopify (SHOP) has a Long Runway for Growth’

Baron Funds, an asset management firm, published its “Baron Global Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Global Advantage Fund (the “Fund”) declined 22.8% (Institutional Shares), during the first quarter, compared to the 5.4% loss for the MSCI ACWI Index (the “Index”), and the 9.7% loss for the MSCI ACWI Growth Index, the Fund’s benchmarks. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Global Advantage Fund mentioned Shopify Inc. (NYSE:SHOP) and explained its insights for the company. Founded in 2006, Shopify Inc. (NYSE:SHOP)  is an Ottawa, Canada-based multinational e-commerce company with a $57.1 billion market capitalization. Shopify Inc. (NYSE:SHOP)  delivered a -67.11% return since the beginning of the year, while its 12-month returns are down by -60.37%. The stock closed at $452.98 per share on May 02, 2022.

Here is what Baron Global Advantage Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q1 2022 investor letter:

“Shopify Inc. is a cloud-based software provider offering an operating system for multi-channel commerce. Shopify has been adopted by over two million merchants who processed $175 billion of gross merchandise volume in 2021, making it the second largest e-commerce player in the U.S. The stock corrected sharply in the first quarter, declining 51%, as a result of investor rotation out of fast-growing, long-duration stocks and after the company released quarterly results, expecting a normalization in the rapid growth it has experienced during the early stages of the pandemic. We remain shareholders as we believe Shopify has a long runway for growth addressing less than 1% of global commerce spending with a unique and competitively advantaged platform.”

Photo by Roberto Cortese on Unsplash

Our calculations show that Shopify Inc. (NYSE:SHOP) ranks 30th on our list of the 30 Most Popular Stocks Among Hedge Funds. Shopify Inc. (NYSE:SHOP) was in 86 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 73 funds in the previous quarter. Shopify Inc. (NYSE:SHOP) delivered a -53.97% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Shopify Inc. (NYSE:SHOP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.