Will Shopify (SHOP) be Able to Sustain Revenue Growth Above 20% Annually?

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and consumer companies thriving on strong AI innovation. Information Technology, Consumer Discretionary, and Communication Services led sector performance, while Energy and Utilities lagged. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is a commerce technology company that provides a cloud-based platform to start, scale, market, and run a business. The one-month return of Shopify Inc. (NASDAQ:SHOP) was -13.96%, and its shares gained 33.79% of their value over the last 52 weeks. On November 17, 2025, Shopify Inc. (NASDAQ:SHOP) stock closed at $139.93 per share, with a market capitalization of $182.167 billion.

RiverPark Large Growth Fund stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its third quarter 2025 investor letter:

“Shopify Inc. (NASDAQ:SHOP): SHOP was a top contributor in the quarter as strong Q2 results and upbeat Q3 guidance confirmed ongoing momentum in its merchant platform. The company reported revenue growth of 31% and a 16% free cash flow margin, driven by increased adoption of merchant solutions, payment services, and new AI-powered commerce tools. Market share gains against traditional retail and newer entrants alike underscored Shopify’s position as the premier platform for global entrepreneurs.

We believe Shopify is exceptionally well positioned to benefit from the secular growth of e commerce. With its comprehensive software and payments ecosystem, a growing base of enterprise-level merchants, and continued innovation in AI-driven retail tools, SHOP should sustain revenue growth above 20% annually while expanding operating and free cash flow margins.”

Shopify Inc. (NASDAQ:SHOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held Shopify Inc. (NASDAQ:SHOP) at the end of the second quarter, compared to 77 in the previous quarter. In Q3 2025, Shopify Inc.’s (NASDAQ:SHOP) revenue increased 32% year-over-year. While we acknowledge the risk and potential of Shopify Inc. (NASDAQ:SHOP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Shopify Inc. (NASDAQ:SHOP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Shopify Inc. (NASDAQ:SHOP) and shared Aristotle Atlantic Large Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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