Core Viewpoint - The article highlights that while artificial intelligence (AI) has been a dominant investment theme, there are other significant investment opportunities, particularly in e-commerce, as evidenced by hedge fund managers selling shares of Nvidia and purchasing shares of Shopify and MercadoLibre [1][2]. Group 1: Shopify - Shopify offers a comprehensive commerce solution, enabling sellers to manage businesses across various channels, including online marketplaces and social media [3]. - The company holds a strong competitive position, accounting for 10% of retail e-commerce sales in the U.S. and 6% in Western Europe, recognized as a leader in e-commerce and B2B commerce solutions [3]. - Shopify's Q2 revenue increased by 21% to 0.26 per diluted share, driven by strong performance in subscription software and merchant services [4]. - The company estimates its addressable market at 5 billion, with GAAP earnings increasing by 103% to $10.48 per diluted share, reflecting a net profit margin expansion to 10.5% [7]. - The commerce segment has shown consistent sales acceleration for five consecutive quarters, supported by advertising strength and the MELI+ loyalty program [7]. - Future earnings growth is expected at 45% annually through 2025, making the current valuation of 74 times earnings appear reasonable for patient investors [8].
Billionaires Are Selling Nvidia Stock and Buying 2 Brilliant Growth Stocks That Have Little to Do With Artificial Intelligence