Here’s Sands Capital Select Growth Strategy’s Views on Shopify (SHOP)

Group 1: Market Performance - U.S. large-cap growth equities experienced a strong recovery in Q2 2025, with a portfolio return of 27.7%, outperforming the Russell 1000 Growth Index's 17.8% gain [1] - The performance was driven by factors such as muted inflation, strong corporate earnings, and improving sentiment around AI and global trade [1] Group 2: Shopify Inc. Overview - Shopify Inc. (NASDAQ:SHOP) is recognized as a leading global provider of ecommerce solutions, with a one-month return of 6.20% and a 52-week gain of 98.64% [2][3] - As of September 15, 2025, Shopify's stock closed at $147.89, with a market capitalization of $191.245 billion [2] Group 3: Shopify's Financial Performance - In Q2 2025, Shopify reported $2.7 billion in revenue, reflecting a 31% year-over-year increase [4] - The company achieved over 20% growth in gross merchandise value (GMV) for the seventh consecutive quarter, with free cash flow margins expanding by 300 basis points [3][4] - The growth is attributed to new merchant additions, higher same-store sales, increased take rates, and ongoing international expansion [3] Group 4: Investment Sentiment - Shopify was held by 69 hedge fund portfolios at the end of Q2 2025, a decrease from 77 in the previous quarter [4] - While Shopify is viewed as a potential investment, certain AI stocks are considered to offer greater upside potential with less downside risk [4]