10 Best Foreign Stocks To Buy Now

7. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders In Q2 2024: 56

Shopify Inc. (NYSE:SHOP) is an internet commerce services provider that enables businesses to sell their products online. Unlike retailers, who typically place merchant products on their platform, the firm has a different business model. This means that while all purchases take place on the merchant’s website, they are redirected through Shopify Inc. (NYSE:SHOP) to enable merchants to preserve their brand identity. This is one of the most unique business models in the market, and the firm has expanded its business to allow merchants to run analytics and marketing campaigns. Shopify Inc. (NYSE:SHOP) also offers payment services, and as a cyclical stock, its shares are vulnerable to economic downturns. The company’s exposure to Europe in particular has created headwinds as it led to an 18% share price drop in May after Shopify Inc. (NYSE:SHOP) guided 19.5% revenue growth which marked a deceleration over the previous year’s figure. Any pickup in consumer spending stemming from lower rates and economic growth can create tailwinds.

Polen Capital mentioned Shopify Inc. (NYSE:SHOP) in its Q2 2024 investor letter. Here is what the firm said:

“Shopify’s business model combines 1) a mission-critical software business where merchants can run all their business operations from one dashboard and 2) a payments business with a long runway to increase attach rates and grow alongside merchants. Additionally, we believe the business possesses significant optionality to continue attaching existing merchant solutions and adding more merchant services as high-margin cross-sells. With several powerful tailwinds at their back (e-commerce, mobile commerce, social media, digital payments, seamless omnichannel, DTC, cloud software digitization) and a highly scalable business model, we think their growth will likely be stronger for longer than investors expect.”