Here's Why Shopify (SHOP) Rose in Q4

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities reported a strong but volatile performance in the fourth quarter, with the S&P 500 Index returning 2.7% while the benchmark Russell Midcap Growth Index declined 3.7%. In this environment, a balanced, highly active share approach resulted in Strategy’s third consecutive quarter of outperformance, capturing early momentum while providing downside protection during rising volatility towards the end of the period. The strategy maintained its long-term investment philosophy of disciplined portfolio management and opportunistic capital allocation. In addition, please check the fund’s top five holdings to know its best picks in 2025.

 In its fourth-quarter 2025 investor letter, ClearBridge Growth Strategy highlighted stocks such as Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is a commerce technology company that provides a cloud-based platform for individuals and companies to create and manage their operations. The one-month return for Shopify Inc. (NASDAQ:SHOP) was 0.18%, and its shares gained 58.60% over the last 52 weeks. On January 9, 2026, Shopify Inc. (NASDAQ:SHOP) stock closed at $164.48 per share, with a market capitalization of $214.127 billion.

ClearBridge Growth Strategy stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its fourth quarter 2025 investor letter:

Fourth-quarter outperformance was driven by a combination of balanced portfolio construction and strong stock selection. Early in the quarter, momentum tied to AI and technology supported results, while the portfolio’s exposure to steadier compounders and defensive growth names helped protect performance as volatility increased. Within IT, Shopify Inc. (NASDAQ:SHOP), an e-commerce platform that enables merchants to operate and scale digital storefronts, benefited from continued adoption by larger enterprises and improving monetization across its ecosystem.

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 high growth large cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.