Al Gore Just Made a Big Bet on Shopify (SHOP) Stock

  • Al Gore's Generation Investment Management just increased its positions in two major stocks.
  • The firm doubled down on Shopify (SHOP) and Microsoft (MSFT).
  • This means some experts may foresee a turnaround in SHOP stock's future.
Shopify on the phone display.
Source: Burdun Iliya /

Since Shopify’s (NYSE:SHOP) stock split in June, SHOP stock has struggled to regain its footing. Instead, the e-commerce giant has trended downward since, losing nearly 50% over the past six months with little in the way of positive company-specific news. However, Shopify did receive a positive endorsement today.

Who’s getting behind SHOP stock? Generation Investment Management, the firm cofounded by former vice president Al Gore, recently made a significant investment in the company. According to data from Whale Wisdom, the firm’s holdings include 7.5 million shares of SHOP worth roughly $234 million. As of March 31, the firm manages more than $36 billion in assets.

This news initially boosted shares of SHOP stock, although it has been somewhat volatile today. Shares began the day by falling but quickly rallied, only to dip again. As of this writing, the stock is down by under 1% for the day, though it could easily pull back into the green.

This turbulence is likely due to general market volatility, pushing down both the New York Stock Exchange and the Nasdaq. On top of SHOP, Generation Investment also recently made a sizable investment in Microsoft (NASDAQ:MSFT), a stock that has also been highly volatile today. Still, the investments from Gore’s firm will likely be a positive catalyst for both Microsoft and Shopify.

Let’s take a closer look at what investors can expect moving forward.

SHOP Stock: A Tempting Play for Bargain Shoppers

Growth stocks have been facing an uphill battle this year — and it isn’t over yet. Macroeconomic headwinds caused by rising inflation and interest rates persist. That has seen SHOP stock struggle for most of 2022; shares have so far failed to gain momentum since the stock split. As a result, some investors have opted to turn their backs on Shopify and instead focus on other tech stocks.

However, Generation Investment Management’s recent betting on beaten down SHOP stock should signal one thing to investors; Shopify is due for a turnaround. The firm isn’t the only one taking a bullish stance on Shopify, either.

Last week, InvestorPlace’s Luke Lango conducted a stage analysis of stocks due to break out in the current bear market, using SHOP as an example. Lango believes the stock is likely due for a breakout soon, as it has finished its recent “Stage 4” decline. InvestorPlace contributor Sirisha Bhogaraju also recently highlighted the company’s growth potential despite mounting headwinds:

“[Shopify] continues to invest in tools that would attract more merchants to its platform over the long term. This includes the Shopify Fulfillment Network (SFN), Shopify Payments, Shopify Editions and Shopify Markets.”

These points may all be factoring into Generation Investment Management’s logic behind betting on SHOP stock. Of course, the firm has yet to comment on the investment. But investors should also note that Generation Investment focuses primarily on environmental, social and governance (ESG) investing. Clearly, the firm is impressed with some aspect of the company’s impact.

This is an excellent endorsement for SHOP stock. All signs point toward a turnaround for Shopify in the coming months.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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