10 Best High Volume Stocks To Buy According to Hedge Funds

8. Shopify Inc. (NYSE:SHOP)

Avg Volume: 8.52 million

Quarterly Revenue Growth: 20.72%

Number of Hedge Fund Holders: 56

Shopify Inc. (NYSE:SHOP) is a leading provider of commerce infrastructure, offering businesses the tools to launch, scale, and manage their operations across all levels. With millions of businesses in 175 countries using its platform, Shopify plays a vital role in supporting diverse enterprises worldwide.

Roth/MKM has reaffirmed its positive outlook on Shopify Inc. (NYSE:SHOP), maintaining a Buy rating and a $79 price target. Following discussions with Shopify’s CFO, Jeff Hoffmeister, and Head of Investor Relations, Carrie Gillard, the firm expressed confidence in Shopify’s core financials. Key growth drivers identified include international expansion, point-of-sale (POS) systems, and enterprise services. Roth/MKM highlighted Shopify’s ability to scale efficiently, with only a moderate increase in operating costs projected through 2025, positioning the company well for future growth.

Shopify’s recent financial performance has been impressive, with a 25% year-over-year revenue increase in Q2, accompanied by rising gross profits. The company has reduced operating expenses, marking its fourth consecutive quarter of profitability. Its point-of-sale solution saw a 27% increase in offline Gross Merchandise Volume, and the company continues to advance in B2B commerce and global expansion.

According to Insider Monkey’s analysis of 912 hedge funds in Q2 2024, 56 held investments in Shopify Inc. (NYSE:SHOP), with ARK Investment Management, led by Catherine D. Wood, being the largest investor, holding 4.96 million shares valued at $328 million.

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