Shopify (SHOP) GMV Growth Reaccelerates as AI Integration Strengthens Investment Case

Core Insights - The Sands Capital Technology Innovators Fund experienced mixed performance in Q4 2025, with a portfolio decline of 6.3% quarter-to-date and a 14.7% return over the year, driven by a narrow group of large-cap growth stocks and stock-specific challenges rather than macroeconomic factors [1] - The fund's top ten holdings represented approximately 59% of its assets, indicating a concentration in a few key stocks [1] - Despite challenges, many portfolio companies showed solid earnings growth in 2025, supported by revenue models linked to artificial intelligence, cloud computing, and digital transformation [1] Fund Performance - The fund's performance was affected by high-valuation innovation names facing pressure from slowing momentum and investor risk aversion [1] - Weaker performance in certain emerging technology holdings was offset by strength in select platform and infrastructure businesses [1] - The average annual portfolio turnover was noted to be 21%, reflecting a long-term investment strategy [1] Shopify Inc. Insights - Shopify Inc. (NASDAQ:SHOP) was highlighted as a key stock, with a one-month return of -4.03% and a market capitalization of approximately $164.362 billion as of February 26, 2026 [2] - The company reported a 28% year-over-year increase in gross merchandise value (GMV) in Q3, marking its strongest growth in four years [3] - Shopify's growth was broad-based across various geographies and merchant sizes, with notable acceleration in GMV per merchant and merchant services growth driven by payments adoption [3] - The company's strong share price performance is attributed to its perception as an AI beneficiary, particularly with the launch of AI-enabled merchant services and product discovery [3]