Liontrust Sustainable Future Defensive Managed Fund on Shopify
Thesis
Liontrust added Shopify in the second quarter because it disagreed with the market’s view that agentic commerce would make the platform an AI loser. It believes Shopify’s commerce infrastructure is positioned to benefit as shopping becomes more agent-driven. Second-quarter revenue rose 34%, while gross merchandise value, gross profit and free cash flow each grew more than 30%; guidance called for low-30s revenue growth in the following quarter. The fund values Shopify’s tools that allow entrepreneurs and small businesses to launch, operate and scale, improving their ability to compete.
“We believed the market had increasingly come to view Shopify as a potential loser from the emergence of agentic commerce, whereas we saw its commerce infrastructure as well positioned to benefit from this shift.”
Key risks
- Agentic commerce could disrupt established commerce infrastructure rather than strengthen Shopify’s position.
- Pressure on consumer spending from higher oil prices and mortgage costs.
- Elevated bond yields and adverse sentiment toward consumer-facing businesses.