What Offers Shopify (SHOP) a Durable Growth Profile?

2 hours ago 2

Soumya Eswaran

Thu, December 25, 2025 astatine 8:02 AM CST 3 min read

TCW funds, an concern absorption company, released its “TCW Concentrated Large Cap Growth Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets continued their rally successful the 3rd quarter, driven by continued optimism astir AI investments and affirmative firm earnings. Against this backdrop, the money (I share) returned +4.11% successful the 4th compared to +10.51% for the Russell 1000 Growth Index. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, TCW Concentrated Large Cap Growth Fund highlighted stocks specified arsenic Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is simply a commerce exertion institution that provides a cloud-based level to start, scale, market, and tally a business. The one-month instrumentality for Shopify Inc. (NASDAQ:SHOP) was 6.34%, and its shares gained 53.79% implicit the past 52 weeks. On December 24, 2025, Shopify Inc. (NASDAQ:SHOP) banal closed astatine $169.45 per share, with a marketplace capitalization of $220.597 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding Shopify Inc. (NASDAQ:SHOP) successful its 3rd 4th 2025 capitalist letter:

"Shares of Shopify Inc. (NASDAQ:SHOP) (SHOP; 2.90%**) rallied aft the institution reported beardown quarterly results and raised guardant guidance. Revenue and GMV (Gross Merchandise Value) some accelerated to 31% YoY growth, with the institution increasing crossed each large verticals and merchant segments. International GMV grew 42% YoY and GMV successful Europe grew 49% YoY. The institution added 16 caller countries for payments this year. Encouragingly, Shopify Plus has moved beyond organically helping turn smaller brands turn into larger brands, arsenic larger enterprises (e.g. Starbucks†, Burton, Miele, Michael Kors), are adopting Shopify Plus astatine an expanding pace. We stay constructive connected shares fixed SHOP’s way grounds of innovation, quality to penetrate caller markets, and durable maturation profile."

Shopify Inc. (NASDAQ:SHOP) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 91 hedge money portfolios held Shopify Inc. (NASDAQ:SHOP) astatine the extremity of the 3rd quarter, compared to 69 successful the erstwhile quarter. In Q3 2025, Shopify Inc.’s (NASDAQ:SHOP) revenue increased 32% year-over-year. While we admit the imaginable of Shopify Inc. (NASDAQ:SHOP) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.