5 Best Software Stocks to Buy Now According to Coatue Management’s 13F Portfolio

4. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 69
Coatue Management’s Equity Stake: $306.48 Million

Shopify Inc. (NYSE:SHOP) is a company that offers software for online and mobile commerce. Shopify Inc. (NYSE:SHOP) stock doubled in value in 2023 after a 123% rally. The rally came on solid underlying fundamentals, with 25% revenue growth in Q3. 

Shopify Inc. (NYSE:SHOP)’s subscription sales are also on a roll, helped by higher demand and rising prices. Shopify Inc. (NYSE:SHOP) is one of the latest additions to Coatue Management’s portfolio, acquiring $306.48 million worth of stakes in Q3 2023.

As of Q3 2023, 69 of the 910 hedge funds tracked by Insider Monkey owned shares of Shopify Inc. (NYSE:SHOP), valued at $2.72 billion. 

This is what Baron Funds, an investment management firm, said about Shopify Inc. (NYSE:SHOP) in its Q3 2023 investor letter:

“[W]e believe that Shopify will continue to benefit from its position as the commerce operating system for its merchants. Rather than replacing Shopify, various selling channels, including TikTok, are managed within the platform, which should enable Shopify to maintain its competitive advantage over the long term [. . .] We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth, as it still holds less than a 2% share of the global commerce market.”

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