5 Cathie Wood Stocks that Can Rebound in Q4

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1. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 60

Share Price Decline YTD as of August 23: 76.13%

Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce company. In the second quarter of 2022, Cathie Wood increased her stake in Shopify Inc. (NYSE:SHOP) by 35%, holding 1.2 million shares worth $455.20 million, representing 2.69% of the total 13F securities. Shopify Inc. (NYSE:SHOP) stock is down 76% year to date as of August 23. However, the increase in consumer spending after July’s inflation data can make the stock rebound as soon as Q4. 

On August 11, Atlantic Equities analyst Kunaal Malde upgraded Shopify Inc. (NYSE:SHOP) to Overweight from Neutral with a $46 price target. Shopify Inc. (NYSE:SHOP) remains “a market leader in product innovation and a high-quality market share gainer”, said the analyst, who sees upside to estimates after the latest reset. GMV estimates are now “seemingly more conservative for Shopify than most peers”, leading him to see upside to consensus.

According to Insider Monkey’s database, Shopify Inc. (NYSE:SHOP) was part of 60 hedge fund portfolios at the end of Q2 2022, compared to 72 funds in the earlier quarter. Jim Simons’ Renaissance Technologies is a significant position holder in the company, with 14 million shares worth about $438.50 million. 

Here is what Rowan Street has to say about Shopify Inc. (NYSE:SHOP) in its Q2 2022 investor letter:

“Tobias Lutke, Shopify (NYSE:SHOP) Founder and CEO

When Tobias Lütke opened an online snowboarding store in 2004, he realized how painfully cumbersome e-commerce software was. So he decided to create Shopify – a platform that made it easy for anyone to open up an online store.

Tobi has built Shopify into one of the most popular e-commerce platforms in the world, with $175 billion in GMV (Gross Merchandise Value) and $4.6 billion in revenues in 2021. SHOP went public in 2015, when revenues were just slightly above $200 million, and the stock is up 1,233% since its IPO. Shopify stock peaked in November 2021 (traded at astronomical 47x sales), which coincided with peak enthusiasm for the tech-driven, “stay-home” stocks. Since then, the stock is down almost 80% and is currently trading at just 6x 2023E sales. We believe that Mr. Market is offering us an exceptional value, at current price levels, for an exceptional company led by a very talented, visionary founder/CEO.”

You can also take a look at 10 Crypto Companies Hit By the Recent Crash and 10 Best Dividend Stocks to Buy in 2022

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