On December 31, 2024, Baillie Gifford (Trades, Portfolio) executed a notable transaction involving Shopify Inc., a leading e-commerce platform provider. The firm reduced its holdings in Shopify by 3,592,311 shares, which resulted in a -0.29% impact on its portfolio. This strategic move reflects Baillie Gifford (Trades, Portfolio)'s ongoing assessment of its investment strategies and portfolio management. The transaction was executed at a price of $106.33 per share, leaving Baillie Gifford (Trades, Portfolio) with 59,773,997 shares of Shopify, representing 4.90% of its holdings.

Baillie Gifford (Trades, Portfolio): A Century of Investment Excellence

Baillie Gifford (Trades, Portfolio) is a distinguished investment management firm with over a century of experience. Known for its long-term, bottom-up investment approach, the firm focuses on identifying companies with sustainable growth potential. Baillie Gifford (Trades, Portfolio) manages money for some of the world's largest professional investors, including international portfolios for clients in the US, Canada, and Europe. The firm's commitment to professional excellence ensures that existing clients' interests are paramount, and products are often closed to new business to maintain strategy integrity and service quality.

Shopify Inc.: Empowering E-commerce

Shopify Inc., a Canadian company, offers an e-commerce platform primarily for small and medium-sized businesses. The company operates in two segments: Merchant solutions and Subscription solutions. Shopify's platform enables merchants to conduct e-commerce across various channels, including physical stores, social networks, and online marketplaces. With a market capitalization of $159.45 billion, Shopify has established itself as a significant player in the software industry.

Evaluating the Transaction's Impact

The transaction was executed at a price of $106.33 per share, and post-transaction, Baillie Gifford (Trades, Portfolio) holds 59,773,997 shares of Shopify. This represents 4.90% of the firm's holdings, indicating a strategic reduction in its position. Despite the reduction, Shopify remains a significant part of Baillie Gifford (Trades, Portfolio)'s portfolio, reflecting the firm's confidence in Shopify's long-term growth potential. The current stock price of Shopify is $123.59, with a PE ratio of 115.50, suggesting it is significantly overvalued according to the GF Valuation.

Financial Metrics and Valuation of Shopify

Shopify's current stock price is $123.59, with a PE ratio of 115.50, indicating it is significantly overvalued according to the GF Valuation. The GF Value of Shopify is $86.76, with a Price to GF Value ratio of 1.42. Despite this, Shopify has shown a 16.23% gain since the transaction and a remarkable 4,313.93% increase since its IPO. The company has a GF Score of 80/100, suggesting likely average performance, with a strong growth rank of 9/10.

Performance and Growth Indicators

Shopify has demonstrated impressive growth, with a 16.23% gain since the transaction and a 4,313.93% increase since its IPO. The company's GF Score of 80/100 indicates likely average performance, supported by a strong growth rank of 9/10. Shopify's financial strength is reflected in its Altman Z score of 46.05 and a Piotroski F-Score of 7, indicating a solid financial position.

Other Notable Investors in Shopify

Besides Baillie Gifford (Trades, Portfolio), other notable investors in Shopify include Ken Fisher (Trades, Portfolio), Tom Gayner (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Among the gurus, Baron Funds holds the largest share percentage of Shopify. This diverse interest from prominent investors underscores Shopify's potential as a valuable investment in the e-commerce sector.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.