Cathie Wood is Not Letting Go of These 5 Stocks Despite Losses

2. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 72

YTD Share Price Decline as of July 22: 72.54%

Shopify Inc. (NYSE:SHOP) is a Canadian e-commerce company operating in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Cathie Wood’s ARK Investment Management boosted its Shopify Inc. (NYSE:SHOP) position by 35% in Q2 2022. The hedge fund owned 1.2 million shares worth $455.20 million. The company has featured on the ARK portfolio since Q2 2017. 

On July 18, Wells Fargo analyst Jeff Cantwell reaffirmed an Overweight rating on Shopify Inc. (NYSE:SHOP) and lowered the price target on the stock to $40 from $55. As the analyst examined Shopify Inc. (NYSE:SHOP)’s June numbers, his confidence in Q2 results waned, and he cut his estimates. He told investors that June data shows year-over-year declines in both visits and unique visitors to Shopify Inc. (NYSE:SHOP)’s login page. The challenging macro backdrop will impact Shopify Inc. (NYSE:SHOP) gross merchandise volume/revenue growth in 2023, which is why the analyst revised his 2023 estimates downwards.

According to Insider Monkey’s database, 72 hedge funds were bullish on Shopify Inc. (NYSE:SHOP) at the end of March, down from 86 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is a prominent shareholder of the company, with more than 1 million shares worth $699 million. 

Here is what Polen International Growth Fund has to say about Shopify Inc. (NYSE:SHOP) in its Q1 2022 investor letter:

“We added to the Portfolio’s position in e-commerce company Shopify in the first quarter after a sharp share-price decline. This brought the Portfolio’s weighting in the company to 2%. We believe Shopify provides a uniquely positioned platform, and we like the company’s strategy of continuing to invest in its business in an effort to strengthen its competitive advantages. The market’s affinity for businesses like Shopify may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”