TCW Concentrated Large Cap Growth Fund’s third-quarter 2025 investor letter revealed a +4.11% return, compared to +10.51% for the Russell 1000 Growth Index. The fund highlighted Shopify Inc. as a top stock pick, with a one-month return of 6.34% and shares up 53.79% over the last 52 weeks.

In the same investor letter, TCW noted Shopify Inc.’s strong quarterly results and raised forward guidance, leading to a rally in SHOP shares. Revenue and GMV grew 31% YoY, with international GMV up 42% and GMV in Europe up 49%. Larger enterprises are increasingly adopting Shopify Plus, signaling future growth potential.

Despite Shopify Inc.’s popularity among hedge funds, TCW believes certain AI stocks offer greater upside potential with lower downside risk. Shopify Inc.’s revenue increased 32% YoY in Q3 2025. For investors seeking undervalued AI stocks with significant growth potential, TCW suggests exploring other options in the market.

Read more at Yahoo Finance: What Offers Shopify (SHOP) a Durable Growth Profile?