BUY ALERT: Investment Firms Are Buying. Are You?

Investment firms have been aggressively buying this stock market favourite. Have you added it to your portfolio?

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Fools familiar with my writing will know that there are so few companies that I am extremely bullish on. Among the TSX-listed companies, there is no company, in my opinion, that shines brighter than Shopify (TSX:SHOP)(NYSE:SHOP). It has grown to become the nation’s largest company by market cap and an internationally renowned e-commerce enabler.

In November, Shopify announced that its merchants sold a total of US$5.1 billion over the Black Friday-Cyber Monday weekend. This was accompanied by increasing e-commerce traffic and a second wave of global lockdowns due to the COVID-19 pandemic. With all of those tailwinds driving consumers to online shopping, I alerted investors of an amazing buying opportunity. I proceeded to write about Shopify in December and January, doubling down on my call and investing capital myself.

What has happened since?

One of the most watched investment firms today, is ARK Invest. Led by Cathie Wood, retail investors have been watching her every move after her successful bullish calls on Tesla, Square, and so many more disruptive companies. From Monday to Thursday last week, ARK Invest bought more than 93,000 shares of Shopify.

As of September 30, 2020, ARK Invest reported owning 188 shares of the company in their 13F filing. This totaled to a position size of about $200,000. Shopify was trading around $1,800 for most of last week. If we take an average cost basis of $1700 per share, then ARK Invest would have paid more than $158 million to build that position.

As I write this article, ARK Invest disclosed owning about 675,000 shares between its portfolios. That means the firm added nearly 15% of that position in a span of four days last week. With Shopify’s earning call scheduled for late this week, one can assume ARK Invest also believes the company is set to blow expectations out of the water. Until the start of the month, Shopify had been trading flat since early July. It seems like institutional investors are getting ready to go to the moon. Have you bought shares yet?

Get in on this top tech stock before it skyrockets as well

As a bonus, I’ll reiterate another stock that I am very bullish on. Docebo (TSX:DCBO)(NASDAQ:DCBO) provides a cloud-based, AI-powered eLearning platform for enterprises. In 2020, businesses around the world including Facebook, Twitter, and Shopify moved to remote settings. This means many businesses will have to adapt their training programs to accommodate the new work settings.

Docebo already claimed Walmart, Appian, and Thomson Reuters as customers before the pandemic. It also boasted a vital Salesforce integration that allows businesses to streamline entire departments. In addition to that strong base, Docebo announced a multi-year partnership with Amazon to power its AWS Training and Certification offerings. To close out the year, the company hosted its American IPO by listing on the Nasdaq.

The stock has netted about a flat return since the start of December. This means investors have had about two-and-a-half months to load up on shares. While I can’t say the company will skyrocket tomorrow, this is a very obvious pick that will make investors very wealthy in the coming years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Jed Lloren owns shares of Appian, Docebo Inc., Shopify, and Tesla. David Gardner owns shares of Amazon, Facebook, and Tesla. Tom Gardner owns shares of Appian, Facebook, Salesforce.com, Shopify, Square, Tesla, and Twitter. The Motley Fool owns shares of and recommends Amazon, Appian, Facebook, Salesforce.com, Shopify, Shopify, Square, Tesla, and Twitter and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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