Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus

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1. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 64

During the lightning round, when a caller asked Cramer’s opinion on Shopify Inc. (NYSE:SHOP), he said:

“Oh, Shopify, the Canadian… that is going be moving to here and listed in New York. I say buy, buy.”

Shopify (NYSE:SHOP) offers a platform that allows merchants to manage and sell their products across various channels, providing tools for inventory management, payment processing, analytics, and securing financing. RiverPark Advisors stated the following regarding Shopify Inc. (NYSE:SHOP) in its Q4 2024 investor letter:

“Shopify Inc. (NYSE:SHOP): Shopify was a top contributor in the fourth quarter following a strong 3Q earnings report that included better than expected revenue growth and continued margin expansion. GMV growth of 24% was three percentage points above investor estimates, revenue of $2.2 billion was $40 million better and free cash flow of $421 million was $80 million better. A combination of new merchants to the company’s platform, increased adoption of SHOP’s offerings by existing merchants, and e-commerce market share gains are driving this revenue growth and profitability.

In 2023, 10% of US retail e-commerce sales flowed through SHOP, second only to Amazon, and the company is still enjoying significant tailwinds as retail merchants of all sizes adopt SHOP’s software tools to display, manage and sell their products across a dozen different sales channels. We believe that the overall growth of e-commerce, combined with the development of new products and services, such as its digital wallet Shop Pay, should continue to drive revenue growth of more than 20% per year over the next several years, accompanied by re-acceleration of operating margin growth and FCF generation.”

While we acknowledge the potential of Shopify Inc. (NYSE:SHOP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

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