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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Galaxy Digital Holdings Ltd. ordinary shares (GLXY)
Q: Trying to decide which of the two would have better long term upside. If one could only chose one of these for a 10 year hold, what would it be and why?
5i Research Answer:
SHOP is a $102B company whereas GLXY is much smaller at $3B. We would consider SHOP to be a 'high-growth' name whereas GLXY is an 'aggressive growth' name. For a long-term hold, SHOP has a much clearer long-term runway operating in the e-commerce space and with a longer track record of operations. GLXY operates in the crypto space and will be much more volatile than SHOP in both earnings and price. We feel GLXY can perform well over a long period of time, but it will see much higher volatility and uncertainty than SHOP. Overall, we would prefer SHOP for a 10-year hold.