10 Best Gig Economy Stocks To Buy

5. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 56

Shopify Inc. (NYSE:SHOP) is an e-commerce company that operates a platform through which merchants sell their products through various sales channels. It is based in Canada.

Since Shopify Inc. (NYSE:SHOP) has a unique angle within the e-commerce space, many investors believe that this stock has massive upside potential. Through its platform, merchants are able to set up digital storefronts – a feature that uplifts millions of small businesses and merchants but which is also heavily used by major brands such as Nike and Red Bull.

The reason why so many businesses prefer Shopify Inc. (NYSE:SHOP) over other platforms that allow them to sell their own products, such as Amazon, is that Shopify Inc. (NYSE:SHOP) takes only a small percentage of your sales as a fee. This is in direct contrast with e-commerce giant Amazon, which charges even up to 45% of your sales as a fee. Because of this, Shopify Inc. (NYSE:SHOP) is continuing to attract a lot of smaller businesses and newer merchants, which is why its user base is only continuing to grow.

Finally, analysts are expecting AI to really boost Shopify Inc. (NYSE:SHOP) to greater heights. This company has the resources to attract AI developers to its platform since developers can add more functionality to the platform and, consequently, earn more money when users decide to incorporate their tools. Even today, Shopify Inc. (NYSE:SHOP) has several AI apps and features, such as chatbots and automated content creation, which are making the stock more profitable for investors.

In total, 56 hedge funds were long Shopify Inc. (NYSE:SHOP) in the second quarter, with a total stake value of $2.4 billion.

Rowan Street Capital mentioned Shopify Inc. (NYSE:SHOP) in its second-quarter 2024 investor letter:

Shopify Inc. (NYSE:SHOP) has been an incredibly rewarding investment for those lucky enough to get in early after the company’s initial public offering (IPO) in 2015. The shares have delivered a return of 2,600% or 42% annual. Its revenues have grown at 49% per annum since the end of 2014 from $105 million to estimated $8.6 billion in 2024. The massive e-commerce market is a huge opportunity, as the company’s growth indicates. As you tell from the chart below, revenues are forecasted to grow above 20% for the next 3 years. Keep in mind, Shopify has been around for more than a decade — and it’s still growing at these high rates.

We have owned Shopify for only 2.5 years, establishing our position in the first quarter of 2022 at a cost basis of $60, after the stock collapsed from its highs of $169 in November 2021. In hindsight, our entry may have been a bit premature, as the stock continued to plunge, eventually reaching a low of $27 in October 2022. However, such market movements are inherently unpredictable, and we seized the opportunity to invest in a company we had long admired…” (Click here to read the full text)