Baron Funds remains invested in Shopify, the e-commerce giant whose shares have plummeted more than 50 percent in the last six months. The asset management firm mentioned Shopify Inc. in its second quarter 2022 investor letter and explained its view on the company and its performance in the current economic slowdown. Shopify stock has fallen over 80 percent from its all-time high.
We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth as it currently addresses less than 1% of global commerce spend.
Baron Fintech Fund
“Shopify Inc. is a cloud-based software provider offering an operating system for multi-channel commerce. Shares fell due to continued post-pandemic e-commerce normalization as economies reopen, concerns about competition following Amazon’s announcement of Buy with Prime, as well as the broader sell-off in growth stocks,” Baron Fintech Fund said in a statement.
“We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth as it currently addresses less than 1% of global commerce spend,” the statement read further.
Latest Investment And Modification in Stake
Generation Investment Management, co-founded by former vice president of the United States Al Gore, made a big investment in Shopify on September 6, Tuesday. It now possesses 7.5 million Shopify shares of value of around $234 million, as per data from Whale Wisdom.
Lately, a number of institutional investors changed their positions in Shopify. Van ECK Associates Corp acquired additional 4,429 shares of Shopify Inc., thus increasing its holdings in shares by 153.6% in the first quarter. GM Advisory Group Inc. purchased 18 additional shares and increased its holdings by 1.9 percent during the fourth quarter. The firm has now total 949 shares worth $1,307,000.
During the last quarter, Farmers Trust Co. also purchased 15 additional shares. It now owns 735 shares valued at $497,000. According to the latest Form 13F filing with the Securities & Exchange Commission, Coldstream Capital Management Inc. trimmed its position in Shopify. The firm reduced its stake by 52.5 percent in the first quarter, owning 316 shares after selling 349.
Quarterly Earnings Results And Ratings
Shopify’s last quarterly earnings results released on Wednesday, July 27, reports $0.14 earnings per share (EPS) for the quarter. The software maker also reported a negative return on equity of 1.61 percent and a negative net margin of 38.01 percent. Shopify earned $1.30 billion as revenue during the quarter as compared to $1.33 billion estimates.
Shopify has an average rating of “Hold” along with an average price target of $72.49, as per data from MarketBeat.com. Four firms currently covering Shopify assigned the rating. While two research analysts rated the stock with a buy recommendation, one issued a hold recommendation and the other one issued a sell recommendation.
What to Expect?
Generation Investment Management’s fresh bet suggests that Shopify’s turnaround is to come. AI Gore’s firm isn’t the only one to take a bullish stance on SHOP stock. InvestorPlace’s Luke Lango recently conducted a stage analysis of stocks with SHOP as an example. He believes that SHOP has finished its “Stage 4” decline and is likely due for a breakout soon.
Disclaimer: This is not an advice or opinion on investment. Users must take caution before investing.
