10 Best SaaS Stocks to Buy According to Billionaires

7. Shopify Inc. (NYSE:SHOP)

Number of Billionaire Investors: 16

Billionaire Holdings: $1.5 Billion

Number of Hedge Fund Holders: 64

Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce company that provides a cloud-based platform for businesses to create and manage online stores. The platform offers tools for payments, marketing, shipping, and customer engagement, making it a one-stop solution for merchants.

While analysts viewed Shopify Inc. (NYSE:SHOP) Q4 2024 results largely positively, some analysts remained on the sideline over valuation. Truist Securities analyst Terry Tillman increased his price target on the company to $120 from $110 but maintained a Hold rating. He believes that the company reported a strong growth at scale in Q4 with upside to estimates across gross merchandise volume, revenue, profits, and cash flow. However, the analyst adds that while he is incrementally positive on the business fundamentals, he remains on hold due to valuation.

On the other hand, on March 6, Wells Fargo analyst Andrew Bauch reaffirmed a Buy rating on Shopify Inc. (NYSE:SHOP) with a $135 price target. He highlighted strong momentum in enterprise, offline, and B2B sectors, as well as the company’s efforts to address tariff challenges by boosting local commerce. The analyst was bullish on the company’s AI-driven efficiencies, stable headcount, and disciplined investments, and believed that the company is well-positioned for growth while maintaining strong margins.