Strong Results Lifted Shopify (SHOP) in Q4

Fund Performance - Baron Global Opportunity Fund achieved a 6.5% return in Q4 2025, outperforming the MSCI ACWI Index which returned 3.3% and the MSCI ACWI Growth Index which gained 2.8% [1] - For the full year 2025, the Fund rose 27.5%, exceeding the benchmarks' returns of 22.3% and 22.4% [1] - The Fund concluded the year with 42 investments, an increase from 38 the previous year, with 35 stocks making up 99.3% of its net assets [1] Shopify Inc. Overview - Shopify Inc. is a Canada-based e-commerce technology company providing a cloud-based platform for managing operations [2] - The stock experienced a one-month return of 16.55% and a 52-week gain of 26.50%, closing at $129.65 per share on March 04, 2026, with a market capitalization of $169.204 billion [2] Shopify Inc. Financial Performance - Shopify's shares rose 8.3% in Q4 2025, finishing the year up 51.1% due to strong financial results that exceeded market expectations [3] - The company reported over 30% year-on-year growth in both gross merchandise value (GMV) and revenues, with international GMV growing by 41%, offline by 31%, and B2B by 98% year-over-year [3] - Shopify signed Estee Lauder for Shopify Plus, indicating success in its enterprise strategy and scalability of its platform [3] Shopify Inc. Strategic Developments - The company is expanding its total addressable market (TAM) by enhancing solutions for merchants, including Shop Pay, Shopify payments, and Shopify Capital [3] - Shopify Campaigns, a new advertising solution, has seen a 9 times increase in budget commitments from merchants year-over-year [3] - Shopify is positioned as a leader in the emerging AI-commerce category, integrating shopping within Large Language Models (LLMs) chat-bots [3]