Jim Cramer’s Latest Lightning Rounds: 15 Stocks to Watch

2. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 56

Shopify Inc. (NYSE:SHOP) is a leading global commerce company that provides a versatile platform and a suite of services designed to assist merchants in managing their businesses across various markets. Its platform allows merchants to display, market, and sell products through a multitude of sales channels, which include online and mobile storefronts, physical retail spaces, pop-up shops, social media platforms, native mobile applications, and various marketplaces. Merchants using the platform benefit from an array of tools designed to streamline operations.

When asked about the prospects of the stock, Cramer commented:

“… Yes, I think that Shopify is at a great level to buy. I think that Harley Finkelstein is doing a terrific job and the stock should be purchased here.”

As e-commerce continues to expand globally, Shopify Inc. (NYSE:SHOP) is well-positioned to capitalize on this growth. The company reported a gross merchandise value (GMV) of $67.2 billion in the second quarter, which is a year-over-year increase of 22%.

The company’s revenue for the same period reached $2 billion, driven by a mix of subscription fees, transaction-processing charges, and advertising revenue from its app store. The launch of financial services such as Shopify Payments and Shop Pay has proven particularly successful, with Shopify Inc. (NYSE:SHOP) processing $41.1 billion in payments during the second quarter, which accounted for approximately 61% of the total GMV.

Rowan Street Capital stated the following regarding Shopify Inc. (NYSE:SHOP) in its Q2 2024 investor letter:

“Shopify Inc. (NYSE:SHOP) has been an incredibly rewarding investment for those lucky enough to get in early after the company’s initial public offering (IPO) in 2015. The shares have delivered a return of 2,600% or 42% annual. Its revenues have grown at 49% per annum since the end of 2014 from $105 million to estimated $8.6 billion in 2024. The massive e-commerce market is a huge opportunity, as the company’s growth indicates. As you tell from the chart below, revenues are forecasted to grow above 20% for the next 3 years. Keep in mind, Shopify has been around for more than a decade — and it’s still growing at these high rates.

We have owned Shopify for only 2.5 years, establishing our position in the first quarter of 2022 at a cost basis of $60, after the stock collapsed from its highs of $169 in November 2021. In hindsight, our entry may have been a bit premature, as the stock continued to plunge, eventually reaching a low of $27 in October 2022. However, such market movements are inherently unpredictable, and we seized the opportunity to invest in a company we had long admired…” (Click here to read the full text)