Shop (SHOP) Surged Following the Earnings Release

Sands Capital, an investment management company, released its “Sands Capital Global Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies worldwide. Global equities surged in the quarter, although leadership remains concentrated. In this environment, the strategy returned -2.0% compared to 7.6% for the MSCI ACWI. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Global Growth Fund highlighted stocks such as Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is a commerce technology company that provides a cloud-based platform to start, scale, market, and run a business. The one-month return for Shopify Inc. (NASDAQ:SHOP) was 11.74%, and its shares gained 48.71% over the last 52 weeks. On December 16, 2025, Shopify Inc. (NASDAQ:SHOP) stock closed at $163.14 per share, with a market capitalization of $212.383 billion.

Sands Capital Global Growth Fund stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its third quarter 2025 investor letter:

"Shopify Inc. (NASDAQ:SHOP) is a leading global ecommerce platform enabling the next generation of retail. Shares rose after second quarter results showed gross merchandise value up 31 percent year over year, driven by momentum with larger merchants and improving monetization. This represented the company’s largest beat versus consensus in five quarters. We attribute the acceleration to strong merchant additions over the past 12 to 18 months, continued growth in Europe, and a resilient online retail environment. In our view, the quarter highlighted Shopify’s ability to outpace global ecommerce growth, supported by enterprise adoption, international expansion, and a rising take rate."

Shopify Inc. (NASDAQ:SHOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 91 hedge fund portfolios held Shopify Inc. (NASDAQ:SHOP) at the end of the third quarter, compared to 69 in the previous quarter. In Q3 2025, Shopify Inc.’s (NASDAQ:SHOP) revenue increased 32% year-over-year. While we acknowledge the potential of Shopify Inc. (NASDAQ:SHOP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Shopify Inc. (NASDAQ:SHOP) and shared the list of most promising fintech stocks to invest in. Shopify is the top contributor to relative and absolute performance of Polen International Growth Strategy in Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.