Core Insights - Ark Invest executed significant trades, including purchases of Amazon, Block, and Alibaba shares, while selling shares of Shopify and Palantir [1] Amazon Trade - Ark Fintech Innovation ETF acquired 17,579 shares of Amazon, valued at approximately $3.99 million based on a closing price of $226.97, coinciding with Amazon's announcement of cutting up to 30,000 jobs, the largest layoffs in its history [2] Block Trade - A combined total of 385,585 shares of Block were purchased by ARK Next Generation Internet ETF, ARK Innovation ETF, and Ark Fintech Innovation ETF, valued at approximately $30.9 million based on a closing price of $80.15 [3] Bitcoin Holdings - Block reported a significant increase in Bitcoin holdings, reaching nearly $1 billion, with an 81% year-over-year growth due to new accounting rules for crypto assets [4] Shopify Trade - Ark Invest sold 281,738 shares of Shopify across its ETFs, valued at approximately $49.32 million based on a closing price of $175.06, while Shopify's focus on AI continues to attract attention [5] Palantir Trade - ARKF ETF sold 13,922 shares of Palantir, valued at approximately $2.63 million based on a closing price of $189.18, as Palantir's stock reached an all-time high driven by major contracts and partnerships [6] Alibaba Trade - ARKF ETF purchased 14,881 shares of Alibaba, valued at approximately $2.67 million based on a closing price of $179.45, following Alibaba's launch of a new AI chatbot enhancing its Quark app [7] Other Key Trades - Sold 133,917 shares of SoFi Technologies, bought 268,833 shares of DraftKings, and acquired 750,115 shares of Intellia Therapeutics across various ETFs [8]

Core Insights - Global equity markets experienced a rally in Q3 2025, driven by enthusiasm for generative AI and strong capital flows into semiconductors, with the MSCI All Country World Index reaching record highs and returning 7.7% [7][8] - The U.S. equities outperformed due to robust economic growth and earnings, while emerging markets, particularly China, saw significant gains fueled by AI optimism and supportive government policies [8][9] - The investment strategy focused on quality growth faced challenges as the market favored high-beta growth stocks, leading to underperformance relative to broader indexes [8][16] Market Performance - The Polen Global Growth Composite Portfolio returned 3.0% gross of fees and 2.7% net of fees in Q3 2025, underperforming the MSCI All Country World Index [17] - Top contributors to the portfolio's performance included Oracle, Shopify, and Alphabet, while the largest detractors were Paycom, SAP, and Adyen [17][18] Investment Activity - New positions were established in NVIDIA, Broadcom, TSMC, Boston Scientific, and Uber, while positions in ADP, Airbnb, Accenture, and Thermo Fisher Scientific were eliminated to optimize portfolio positioning [22][23] - The decision to invest in semiconductor companies was influenced by the increasing demand for AI-related hardware, with NVIDIA expected to generate earnings growth of approximately 20% per year [25][26] Economic Context - The U.S. economy grew at a revised annual rate of 3.8% in Q2 2025, driven by technology capital expenditures and AI-related spending, despite concerns over a softening labor market [10][13] - The Federal Reserve lowered interest rates by 25 basis points for the first time in 2025, indicating a shift in focus towards employment [13] Sector Analysis - Defensive sectors like healthcare and consumer staples lagged as the market bifurcated into 'AI winners or losers,' with high-beta growth companies dominating returns [15][16] - The hyperscaler management teams indicated significant increases in future capital expenditures, particularly for AI-related projects, reflecting strong demand in the sector [14] Company-Specific Highlights - Oracle reported a 359% increase in remaining performance obligations, highlighting the demand for cloud computing and AI infrastructure [11][12] - Boston Scientific is expected to grow earnings in the mid-teens over the next 3-5 years, driven by its innovative medical products [29] - Uber anticipates nearly $200 billion in booking transactions for 2025, with a projected earnings growth of around 20% per annum over the next five years [30]

Core Insights - Shopify (SHOP) shares have surged 21% in the last month, currently priced at $172.95, but the valuation appears very high, with a potential price point of $121 being attainable [2][5][9] - The company has demonstrated strong operational performance, with revenues increasing by 29% from $7.8 billion to $10 billion in the last 12 months and a quarterly revenue rise of 31.1% [5][9] - Financial stability is strong, with a market capitalization of $224 billion, operating income of $1.5 billion, and a debt-to-equity ratio of 0.5% [4][9] Valuation - The current valuation of Shopify is considered very high, leading to a recommendation to lower exposure to SHOP shares [2][5] - Despite strong growth, the stock seems relatively expensive due to its very high valuation metrics [3][5] Growth Performance - Shopify has experienced an average revenue growth rate of 26.0% over the past three years [5] - The company generated nearly $1.8 billion in operating cash flow during the last 12 months, with a cash-to-assets ratio of 40.0% [9] Profitability - Shopify's operating margin stands at 15.3%, with a net margin of about 23.4% [9] - Profitability appears moderate when compared to the broader market [6] Financial Stability - The company has a strong financial standing, with cash (including cash equivalents) amounting to $5.8 billion of total assets [9] - Shopify's performance during economic downturns has been weaker than the S&P 500 index, indicating some vulnerability [6][10] Market Comparison - SHOP stock has shown significant volatility, declining 84.8% from its peak in November 2021 to a low in October 2022, compared to a 25.4% decline for the S&P 500 during the same period [10] - The stock has not yet reclaimed its pre-crisis high, with the highest point since then being $172.95 in October 2025 [10]

Group 1: Fund Performance - Rowan Street Capital's fund remained unchanged in Q3 2025, with a return of +0.22%, leading to a year-to-date return of +20.4% net of fees, outperforming the S&P 500's +14.8% [1] - Over the past three years, the firm's capital compounded at approximately +54.2% annually, resulting in a cumulative return of +266%, significantly exceeding the S&P 500's +24.9% annualized gain [1] Group 2: Shopify Inc. Overview - Shopify Inc. (NASDAQ:SHOP) has been in Rowan Street Capital's portfolio for over three years, compounding at 29% annually and being the best performer in 2025 [3] - The stock's one-month return was 8.86%, and it gained 103.38% over the last 52 weeks, closing at $162.01 per share with a market capitalization of $210.003 billion on October 22, 2025 [2] Group 3: Shopify Inc. Performance Drivers - Shopify's performance is attributed to operating leverage, margin expansion, and renewed investor confidence in its long-term growth prospects [3] - The company is enhancing its ecosystem through product innovation, deeper merchant integration, and new AI-driven tools, including a partnership with ChatGPT [3] Group 4: Market Position and Competitiveness - Shopify delivered $2.7 billion in revenue for Q2 2025, reflecting a 31% year-over-year increase [4] - Despite its potential, Shopify is not among the top 30 most popular stocks among hedge funds, with 69 hedge fund portfolios holding the stock at the end of Q2 2025, down from 77 in the previous quarter [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1] - The energy demands of AI technologies are immense, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for supporting the anticipated surge in energy demand from AI [3][7] Investment Opportunity - The company in focus is not a chipmaker or cloud platform but is positioned to benefit significantly from the increasing energy needs of AI data centers [3] - It operates as a "toll booth" for energy, collecting fees on exported liquefied natural gas (LNG) and is poised to capitalize on the onshoring trend driven by tariffs [5][6] - The company is debt-free and has a substantial cash reserve, equating to nearly one-third of its market capitalization, making it financially robust compared to other firms in the sector [8] Market Position - The company has a significant stake in nuclear energy infrastructure, aligning it with the future of clean and reliable power [7] - It is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] - Wall Street is beginning to take notice of this company due to its undervalued status and potential for growth, with some hedge fund managers discreetly promoting it [9][10] Future Outlook - The ongoing AI revolution is expected to disrupt traditional industries, creating opportunities for companies that adapt and embrace AI technologies [11][12] - The influx of talent into the AI sector is anticipated to drive continuous innovation and advancements, further solidifying AI's role in the future economy [12] - The company is positioned to benefit from multiple growth engines in the AI space, making it an attractive investment opportunity with significant upside potential [10][14]

Core Viewpoint - Shopify and AppLovin are predicted to surpass Palantir's current market value of $422 billion within five years, driven by strong financial performance and growth potential in artificial intelligence and e-commerce sectors [1]. Group 1: Shopify - Shopify reported a 31% increase in revenue to $2.6 billion in Q2, with non-GAAP net income rising 35% to $0.35 per diluted share [2]. - The investment thesis for Shopify focuses on its ability to simplify e-commerce through a unified platform for managing physical and digital storefronts, along with providing tools for payment processing, advertising, and logistics [3]. - Significant growth opportunities are identified in international markets and B2B commerce, with total gross merchandise volume (GMV) increasing 30%, international GMV up 42%, and B2B GMV soaring 101% in Q2 [4]. - Shopify is leveraging demand for artificial intelligence by introducing tools that create online storefronts from keywords and offering AI capabilities for product descriptions, media content generation, and customer inquiries [5]. - Wall Street anticipates Shopify's earnings to grow at 30% annually over the next three to five years, potentially lowering its price-to-earnings multiple from 88 to 49, with a market value reaching $425 billion by mid-2030 [6]. Group 2: AppLovin - AppLovin experienced a 77% revenue increase to $1.2 billion in Q2, with GAAP net income rising 169% to $2.39 per diluted share, and expects advertising revenue to grow 59% in Q3 [7][10]. - The investment thesis for AppLovin is based on its advanced recommendation engine, Axon, which utilizes AI to optimize ad placements, positioning it favorably in the generative AI landscape [8]. - AppLovin's current market value is $203 billion, with a target of $425 billion by 2030, requiring a 109% stock increase, translating to approximately 16% annual returns over the next five years [9]. - The company is expanding into e-commerce advertising and has launched a self-service platform, Axon Ads Manager, which has shown positive outcomes in early pilots [10]. - Wall Street projects AppLovin's adjusted earnings to grow at 35% annually through 2028, potentially reducing its valuation from 85 to 39 times earnings while achieving a market value of $425 billion by mid-2030 [10].

Portfolio Adjustments - Ark Invest increased its positions in Qualcomm and BYD while reducing stakes in Palantir and Shopify [1] - The total value of the sale of Palantir shares was $3.7 million, with 20,208 shares sold at a price of $181.59 [2] - Ark Invest sold 22,393 shares of Shopify for $3.7 million, with shares closing at $164.71 [4] Palantir Insights - Palantir is gaining traction in the AI sector, highlighted by Oracle's CTO emphasizing the importance of proprietary data in AI, an area where Palantir claims unique strengths [3] - Despite the sale, Palantir stock remains strong, with momentum in the 97th percentile according to Benzinga's Edge Stock Rankings [11] Shopify Developments - Shopify's stock has recently surged due to strategic pivots and positive trends in e-commerce, particularly following OpenAI's introduction of the "Buy it in ChatGPT" feature [5] Qualcomm Developments - Ark Invest acquired 20,382 shares of Qualcomm for $3.4 million, as the company faces regulatory scrutiny over its acquisition of Autotalks [6] - Qualcomm's acquisition was completed without notifying Chinese regulators, leading to an antitrust probe [7] BYD Developments - Ark Invest purchased 69,000 shares of BYD valued at $941,850, despite the company announcing a recall of over 115,000 vehicles due to battery-related safety issues [8][9] Other Key Trades - Guardant Health: Sold 124,233 shares, reducing exposure in precision oncology [10] - Quantum-Si: Sold 86,849 shares as part of biotech adjustments [10] - Oklo: Sold 53,353 shares, indicating reduced conviction in emerging energy [10] - Intuitive Surgical: Acquired 9,174 shares, increasing investments in robotic healthcare [10] - Exact Sciences: Purchased 90,731 shares, reflecting confidence in diagnostics innovation [10]

Core Insights - Shopify's Merchant Solutions revenues increased by 37% year over year in Q2 2025, indicating strong monetization of platform activity [1][10] - Gross Merchandise Volume (GMV) rose by 31% to $87.84 billion, driven by higher sales from existing merchants and new additions [1][10] - The adoption of Shopify Payments reached a 64% penetration rate, significantly contributing to revenue growth [2] Revenue and Growth - Shop Pay processed $27 billion in GMV, reflecting a 65% year-over-year increase [2][10] - Merchant Solutions revenues were bolstered by a 29% growth in offline commerce and a remarkable 101% rise in the B2B segment [2] - Shopify anticipates mid-to-high 20% revenue growth for Q3 2025, supported by ongoing strength in Merchant Solutions and international expansion [3] Competitive Landscape - Shopify faces intense competition from eBay and Amazon in the e-commerce sector [5] - eBay reported 134 million active buyers and $19.5 billion in GMV for Q2 2025, leveraging generative AI to enhance advertising revenues [6] - Amazon's "Buy with Prime" service and extensive logistics capabilities position it as a formidable competitor in the U.S. e-commerce market [7] Stock Performance and Valuation - Shopify shares have increased by 48.4% year to date, outperforming the broader Zacks Computer and Technology sector and the Zacks Internet Services industry [8] - The stock is considered overvalued with a forward 12-month price/sales ratio of 15.58X compared to the sector's 6.9X [12] - The Zacks Consensus Estimate for 2025 earnings is $1.45 per share, indicating an 11.5% year-over-year growth [14]

Core Viewpoint - Shopify is positioned to benefit from strong consumer spending and is expected to show excellent performance in upcoming earnings reports, with a significant growth trajectory ahead [1][7]. Company Performance - Shopify's gross merchandise volume reached $87 billion in Q2, closely trailing Amazon's $107 billion [3]. - The company's revenue for Q2 was $2.7 billion, reflecting a 31% year-over-year increase, indicating accelerating growth [4]. Growth Drivers - E-commerce continues to grow as a percentage of retail sales, and Shopify is expanding into physical stores and omnichannel shopping options [5]. - The company is attracting a diverse client base, including enterprise clients like Starbucks and Canada Goose, due to its range of service packages [5]. - Shopify is also expanding internationally to capture greater market share, facing competition from platforms like WooCommerce and Squarespace [6]. Stock Performance - Shopify's stock has increased by approximately 47% this year, and strong performance is anticipated in the upcoming third-quarter results [7].

Group 1 - Shopify (SHOP) stock recently reached a new high after recovering from a previous unsuccessful breakout in late September [1] - Quanta Services (PWR) and Emcor Group (EME) also achieved new highs and are currently in buy zones [1] - Emcor stock is highlighted as actionable following a breakout last week, particularly in the context of AI data centers [2] Group 2 - Analysts are becoming increasingly bullish on AI-related stocks, particularly in the data center sector, amidst a broader stock market sell-off [4] - The resilience of three AI stocks is noted, indicating strong performance despite market volatility [4] - Quanta Services, CrowdStrike, and Figure Technology are identified as key stocks to watch, with a focus on their buy points [4]