Ark Invest Trades Summary - Ark Invest significantly increased its holdings in Bullish, Coinbase, Circle Internet Group, and Shopify while selling a large number of Pinterest shares [1] Bullish Trade - Ark Fintech Innovation ETF acquired 28,186 shares of Bullish, valued at approximately $1.06 million based on a closing price of $37.76 [2] - Analysts anticipate Bullish's third-quarter earnings per share to drop to $0.09 from $0.93 in the previous quarter, while revenue is expected to rise to $72.39 million from $58.63 million [3] - Ark purchased nearly $10.02 million worth of Bullish stock amid a crash in major cryptocurrencies like Bitcoin and Ethereum [4] Coinbase Trade - ARKF and ARK Innovation ETF collectively purchased 11,620 shares of Coinbase, totaling around $3.04 million at a closing price of $261.79 [5] - Coinbase's stock has been affected by a crypto-market crash, raising concerns about a deeper crypto winter despite recent wins, including a strong third quarter and new partnerships [6] Circle Trade - Ark's ARKF and ARKK funds added 40,071 shares of Circle Internet Group, valued at approximately $3.06 million based on a closing price of $76.60 [7] - Analysts have turned bullish on Circle, with upgrades from Baird and Bernstein, reflecting optimism about its future performance [8] Shopify Trade - Ark's ARKK fund purchased 33,992 shares of Shopify, amounting to approximately $4.8 million at a closing price of $140.45 [9] - Shopify reported a 32% year-over-year revenue increase for the third quarter, surpassing analyst expectations, and anticipates continued growth in the fourth quarter [10] Pinterest Trade - ARKK sold 203,244 shares of Pinterest, valued at approximately $5.23 million based on a closing price of $25.77 [11] - Pinterest's third-quarter earnings report was disappointing, with adjusted earnings of 38 cents per share missing expectations of 42 cents, despite a 17% revenue increase [12]

Core Insights - The RiverPark Large Growth Fund reported strong performance in Q3 2025, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51% [1] - The fund itself returned 4.73% during the same period, with market leadership concentrated among a few mega-cap tech and consumer companies driven by AI innovation [1] Fund Performance - The fund's top sectors included Information Technology, Consumer Discretionary, and Communication Services, while Energy and Utilities underperformed [1] Shopify Inc. Insights - Shopify Inc. (NASDAQ:SHOP) was highlighted as a top contributor to the fund's performance, reporting a revenue growth of 31% and a free cash flow margin of 16% [3] - The company experienced a one-month return of -13.96% but gained 33.79% over the last 52 weeks, closing at $139.93 per share with a market capitalization of $182.167 billion on November 17, 2025 [2] - Shopify's market share gains against traditional retail and newer entrants reinforce its position as a leading platform for global entrepreneurs [3] Hedge Fund Interest - Shopify Inc. was held by 69 hedge fund portfolios at the end of Q2 2025, a decrease from 77 in the previous quarter [4] - Despite acknowledging Shopify's potential, the fund suggests that certain AI stocks may offer greater upside potential with less downside risk [4]

Market Overview - In the third quarter of 2025, the US equity market experienced a rally, with the S&P 500 Index increasing by 8.12% [1] - Bonds also performed well, as indicated by a 2.03% rise in the Bloomberg U.S. Aggregate Bond Index during the same period [1] Performance Analysis - Aristotle Atlantic's Large Cap Growth strategy achieved a gross return of 9.76% and a net return of 9.61%, underperforming the Russell 1000 Growth Index, which returned 10.51% [1] - The relative underperformance of the fund was attributed to security selection during the quarter [1] Company Spotlight: Shopify Inc. - Shopify Inc. (NASDAQ:SHOP) is highlighted as a key stock, providing a cloud-based platform for businesses to start, scale, market, and operate [2][3] - Over the last month, Shopify's stock saw a decline of 11.34%, but it gained 37.93% over the past 52 weeks, closing at $146.04 per share on November 14, 2025, with a market capitalization of $187.593 billion [2] - The company focuses on enhancing the shopping experience for consumers and streamlining operations for merchants through its comprehensive, multi-channel platform [3] - Shopify's business model includes recurring subscription solutions and merchant success-based solutions, supporting millions of merchants across over 175 countries [3] - The platform allows for seamless management of products, sales, and customer relationships across various channels, emphasizing continuous innovation and robust infrastructure [3]

Core Insights - Growth stocks are favored for their higher-than-average growth potential, but they can also experience significant declines [1][2] - Value stocks may be preferred during market downturns due to their limited downside and upside potential [2] - Long-term investment in growth stocks can yield positive results despite potential short-term pullbacks [2] Company Summaries - **Shopify (NASDAQ: SHOP)**: - Shopify has averaged annual gains of nearly 50% over the past decade and 49% year to date [4] - The company reported 32% revenue growth in its third quarter and maintains an 18% free-cash-flow margin, marking nine consecutive quarters of double-digit free-cash-flow margin [6] - Shopify's gross merchandise volume reached $87 billion, closely approaching Amazon's $107 billion [6] - The stock's forward-looking price-to-earnings (P/E) ratio is 85, below its five-year average of 98 [6] - **Taiwan Semiconductor Manufacturing (NYSE: TSM)**: - Taiwan Semiconductor is a leading semiconductor foundry, manufacturing chips rather than just designing them [9] - The company holds a significant market share of 71%, an increase from 65% the previous year [9]

Core Insights - Leap has launched Bombas' third retail store in Austin, following successful openings in South Florida and New York City, utilizing its retail platform to facilitate rapid expansion into key markets [1][3] - The collaboration between Leap, Shopify, and Simon provides a streamlined approach for brands to establish physical retail locations, overcoming traditional barriers such as capital requirements and operational complexities [2][4] Group 1: Expansion and Strategy - Bombas is expanding into physical retail to enhance brand presence and customer experience, partnering with Leap, Shopify, and Simon to ensure quality and operational expertise [3][5] - The Retail-as-a-Service (RaaS) model from Leap simplifies the process of brick-and-mortar expansion, managing everything from design to daily operations, thus reducing the time and investment needed for physical retail [4][6] Group 2: Operational Benefits - The collaboration allows merchants to minimize capital expenditure and offers flexible terms compared to traditional long-term leases, enabling quicker market entry [4][6] - Leap's platform integrates seamlessly with Shopify, providing consistent inventory management and sales tracking, which enhances the overall retail experience [6][8] Group 3: Market Positioning - Simon's premier shopping destinations, such as Town Center at Boca Raton and The Domain in Austin, are strategically chosen locations for Bombas, ensuring visibility to high-intent shoppers [5][6] - The initiative is expected to expand to include more merchants and premium retail locations throughout 2026, indicating a growing trend in physical retail expansion for digital brands [7][8]

Core Viewpoint - AppLovin (APP) and Shopify (SHOP) are attracting investor attention for different reasons, with Shopify being a leading e-commerce platform and AppLovin focusing on marketing and app monetization, but recent trading patterns have diverged, prompting a reassessment of investment opportunities [2] Financial Performance Comparison - Shopify's stock dropped by 6.5% recently, while AppLovin shows stronger revenue growth at 68.2% compared to Shopify's 31.5% [3] - AppLovin's revenue growth over the last 12 months is 86.4%, significantly higher than Shopify's 30.2% [9] - AppLovin outperforms Shopify in profitability, with a last twelve months margin of 52.5% and a three-year average margin of 35.7% [9] Valuation Metrics - AppLovin has a comparatively lower valuation than Shopify, indicating a potentially more favorable investment opportunity [3] - The financial data highlights the differences in growth, margins, momentum, and valuation multiples between Shopify and AppLovin [4]

Core Insights - Baron Fifth Avenue Growth Fund gained 5.7% in Q3 2025, underperforming the Russell 1000 Growth Index (10.5%) and the S&P 500 Index (8.1%) [2] - Year-to-date, the Fund is up 14.4%, compared to 17.2% and 14.8% for its benchmarks [2] Top Contributors to Performance - NVIDIA Corporation's shares rose 18.1% due to its strong position in AI infrastructure, with a long-term total addressable market (TAM) expansion from $1 trillion to between $3 and $4 trillion [3] - Shopify Inc. saw a 28.6% increase in shares, driven by a 30% year-over-year revenue growth and a 29% increase in gross merchandise volume (GMV) [4][5] - Tesla, Inc. shares increased by 40.0%, supported by record delivery volumes, renewed investor confidence in leadership, and advancements in AI initiatives [6] Top Detractors from Performance - The Trade Desk's shares declined 31.9% due to in-line earnings and competitive pressures, particularly from Amazon's entry into the market [7] - Intuitive Surgical, Inc. shares fell 17.7% as system placements in the U.S. did not meet expectations, compounded by financial pressures on hospital customers [8] - MercadoLibre, Inc. shares decreased by 10.6% due to macroeconomic pressures in Argentina and increased competition from Amazon, despite strong quarterly results [9] Recent Activity - The Fund initiated a small investment in Figma and added to existing holdings in KKR, Alphabet, Taiwan Semiconductor, and CrowdStrike, funded by reducing positions in seven other holdings [10]

Core Insights - Shopify shares have appreciated 31.3% in the past six months, outperforming the Zacks Computer and Technology sector's growth of 28.5% [1][10] - The question arises whether investors should buy, hold, or sell the stock at present [1] Merchant Base and Growth - Shopify's expanding merchant base is a critical pillar for long-term growth, with GMV increasing by approximately 32% year over year in Q3 [2] - Monthly recurring revenues reached a new record, indicating growth in paid subscriptions and higher ARPU as more merchants adopt advanced plans [2] - The quality of Shopify's merchant ecosystem is strengthening, with significant GMV contributions from long-term merchants, highlighting platform stickiness and retention [3] - International expansion is contributing to GMV growth, particularly in Europe, and deeper adoption of Shopify Payments and AI tools is increasing wallet share per merchant [4][5] Financial Performance - Shopify's free cash flow margin was 18% in Q3 2025, marking the ninth consecutive quarter of double-digit performance [6] - The free cash flow margin for the first nine months of the year held at 16%, showcasing consistent cash-generating capabilities [6] - Management expects the fourth-quarter free cash flow margin to exceed third-quarter levels, indicating confidence in sustaining strong cash flows [8] Competitive Landscape - Shopify faces intense competition from Amazon, Adobe, and MercadoLibre, which are expanding their platforms and pressuring Shopify's market position [9][10] - Amazon is a significant threat with its "Buy with Prime" initiative and enhanced AI shopping experience [9] - Adobe Commerce is preferred by large businesses needing customization, posing a challenge in the enterprise segment [11] - MercadoLibre is gaining traction in Latin America with strong GMV growth and a seamless ecosystem [12] Valuation and Market Position - Shopify's forward price-to-sales ratio is 14.95X, significantly higher than the Zacks Internet Services industry's average of 7.08X, indicating overvaluation [16] - Shares are trading below the 50-day moving average, suggesting a bearish trend and limited near-term upside [20] Conclusion - Shopify benefits from a growing and diversified merchant base and strong free cash flow, supporting long-term expansion [22] - However, rising competition and high valuation raise concerns for investors despite solid fundamentals [22] - The recommendation is to hold the stock at present [23]

Airbnb - Airbnb's management is focusing on integrating AI across its app to enhance user experience and service offerings, aiming for a fully AI-powered platform for trip planning and booking [2][3] - The company has launched an AI customer support assistant that has reduced the need for human agents by 15%, with plans to expand its capabilities to over 50 languages by 2026 [4][6] - AI search functionality is set to roll out in 2026, allowing users to interact with the app in a conversational manner to personalize their travel experiences [7][10] - Airbnb's approach to AI emphasizes real-world connections, aiming to attract users away from screens and towards authentic experiences [8][9] - The management believes that Airbnb's unique capabilities in travel will allow it to benefit more from AI compared to other travel companies, as it does not rely on standardized products [10][11] - The company is cautious about integrating with platforms like ChatGPT, preferring to maintain its unique brand identity and avoid being seen as a commodity [11][12] - Airbnb is delaying the introduction of an advertising business until after the successful implementation of AI search, indicating a strategic approach to new revenue streams [14][15] Arista Networks - Arista Networks is positioned to benefit from the growing demand for AI networking solutions, with a target of $2.75 billion in AI-related revenue for 2026 [19][20] - The company is actively involved in creating open ecosystems for AI networking, collaborating with major players like NVIDIA and Oracle [17][22] - Arista's Etherlink distributed switch fabric is designed to enhance the performance of AI accelerators, showcasing its strength in AI networking [16][19] - Management sees a significant market opportunity in AI build-outs, with a total addressable market exceeding $100 billion [20] - The company is experiencing strong demand for its networking solutions, particularly in large AI data center projects, and is involved in multiple AI accelerator projects [26][29] - Arista's management acknowledges the challenges of maintaining margins with cloud and AI customers but remains optimistic about overall growth [25][32] - The convergence of front-end and back-end networking is seen as advantageous for Arista, allowing it to offer comprehensive solutions across its infrastructure [34][35] Coupang - Coupang is focused on building its internal AI computing infrastructure to enhance operational efficiency and service quality [42] - The company is testing the potential for third-party usage of its AI infrastructure but is primarily concentrating on internal applications [42] - AI is delivering tangible benefits in areas such as demand forecasting and fulfillment automation, contributing to cost savings and improved customer satisfaction [42] Datadog - Datadog has seen strong revenue growth from AI native customers, with a notable increase in the number of companies spending significantly on its services [43][44] - The management is optimistic about the future growth of AI usage across various industries, indicating a broadening customer base [44] - Datadog's Bits AI agents are generating high customer interest, with positive feedback on their efficiency and effectiveness in operations [45][46]

Core Insights - Amazon and Shopify are both leading e-commerce stocks, with Shopify showing a remarkable 5,000% increase over the past ten years, while Amazon has increased by over 700% in the same period [1][2] Company Overview - Amazon has diversified its business model beyond e-commerce, venturing into cloud computing and online advertising, which are significant growth areas [2][4] - Shopify focuses on enabling merchants to create online stores without the need for inventory, which allows for a more streamlined business model [2][9] Growth Metrics - Amazon's overall revenue rose by 13% year-over-year, with significant contributions from Amazon Web Services (AWS) and online advertising, which grew by 20% and 24% year-over-year, respectively [5][7] - Shopify reported a 32% year-over-year revenue growth in Q3, with its merchant solutions and subscriptions growing at 14.6% and 38.2%, respectively [10][12] Profitability - Shopify enjoys a higher net profit margin of 33.8% compared to Amazon's 11.8%, attributed to its focus on digital software and lower overhead costs [12] - Amazon's diversified revenue streams, including AWS and online ads, provide some margin improvement despite its lower overall profit margins [12][15] Valuation - Amazon has a P/E ratio of 33.90, while Shopify's P/E ratio stands at 84.06, indicating a better valuation for Amazon and a greater margin of safety for investors [14] - The forward P/E ratio for Amazon is 28.57, significantly lower than Shopify's 82.64, reinforcing Amazon's more favorable valuation [14] Investment Outlook - Amazon is considered the safer investment due to its multiple revenue streams and strong positioning in the AI sector, particularly with its partnership with OpenAI [15] - Shopify, while growing faster, has limited growth opportunities if its merchant solutions revenue decelerates, making it more vulnerable to market fluctuations [15]