We recently published a list of Jim Cramer’s Latest Calls: Top 10 Stocks. In this article, we are going to take a look at where Shopify Inc. (NYSE:SHOP) stands against other top stocks that Jim Cramer discusses.
Jim Cramer recently talked about the impact of tariffs on the US stock market and mentioned some similar events from history.
“We know that the president, who loves tariffs, is now threatening to put tariffs on our trading adversaries that are as high or higher than the fabled Smoot-Hawley Tariff Act of 1930 — yeah, the one that helped cause the Great Depression. The sellers are not oblivious to history, even with the White House is as they see Trump mimicking legendary president Herbert Hoover, who, despite endless diatribes by economists saying Smoot-Hawley could destroy the economy, championed and signed the bill in the name of — yes — the Working Man, especially the farmers. Exports dropped 60%, and we went into the worst depression in our nation’s history. Hoover regretted it, saying that they should be repealed in 1932 — way too late. I think the comparison is excessive, but you never want to be in the same sentence as Herbert Hoover, should you join the sellers.”
Cramer announced the end of Mag. 7 and said he’s buying low-multiple tech stocks, banks and industrials for his charitable trust.
“I would not jump back into the Magnificent 7 because, as of tonight, there is no mag. Came up with that name, scrapping it right now. No moniker fits the 2 or 3 that remain viable.”
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For this article, we picked 10 stocks Jim Cramer has been talking about over the past few weeks. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Shopify Inc. (NYSE:SHOP)
Number of Hedge Funds Investors: 56
Jim Cramer in a recent program on CNBC said the market “misinterpreted” Shopify Inc. (NYSE:SHOP)’s last quarterly report and recommended investors to pile into the stock on the next pullback.
“They are very easy to set up. They are the ones that every single entrepreneur that I know is on Shopify. And I think you nailed it. I know that the last quarter people misinterpreted it and they sent it down. Why don’t you wait until they report it again? That same thing will happen, and you’ll be able to have a better opportunity to buy it than you have right now.”
Baron Fifth Avenue Growth Fund stated the following regarding Shopify Inc. (NYSE:SHOP) in its Q4 2024 investor letter:
“Shopify Inc. (NYSE:SHOP) is a cloud-based software provider for multi-channel commerce. Shares rose 32.7% in the fourth quarter, finishing 2024 up 36.5% on strong financial results, including year-over-year revenue growth of 26% thanks to continued market share gains with gross merchandise value growth of 24%. Shopify reported continued success in its original online commerce segment while also expanding into offline, international, and business-to-business (B2B), which grew 27%, 30%, and 145%, respectively. Operating margins of 18% came in 240bps above expectations. While the company again guided for an accelerated pace of reinvestments into the business, which will limit short-term margin expansion, we believe this is the correct long-term strategy, as Shopify is taking advantage of its continuously improving product set and maturing go-to-market, in order to further expand its addressable market, targeting international merchants, offline and B2B retailers and going up market. 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.”
Overall, SHOP ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of SHOP, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHOP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.