Shares of e-commerce platform Shopify (SHOP, Financial) were down 21.8%, detracting 17 bps from performance in the period. We believe the decline was due to e-commerce normalization as economies continued reopening, increased concerns about competition following Amazon’s announcement of Buy with Prime, and the broader sell-off in growth stocks. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth as it currently addresses less than 1% of global commerce spend.
Shopify Inc. is a cloud-based software provider offering an operating systemfor multi-channel commerce. Shares detracted from results in the third quarter due to e-commerce normalization as economies continued reopening, increased concerns about competition following Amazon’s announcement of Buy with Prime, and the broader sell-off in growth stocks. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth as it currently addresses less than 1% of global commerce spend.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund third-quarter 2022 commentary.
