Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Now Is the Time to Buy Shopify (TSX:SHOP) and 2 More Tech Stocks

Stock Markets Apr 29, 2022 15:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Now Is the Time to Buy Shopify (TSX:SHOP) and 2 More Tech Stocks

Worries around growth and high valuations weighed on tech stocks at the beginning of this year. High inflation, rising interest rates, supply shortages, and Russia’s invasion of Ukraine further caused a drag. Given the challenges, several top tech stocks, including Shopify (TSX:TSX:SHOP)(NYSE:SHOP), lost substantial value.

While macro and geopolitical concerns could continue to play spoilsport in the near term, I see this correction as an excellent entry point for investors. Let’s look at some of the factors beyond their lower price that make these stocks attractive at current levels.

Shopify Shopify is a must-have stock for investors to outperform the broader markets in the long term. Its growing market share in the U.S. retail space, strong competitive positioning in the domestic market, growing international footprint, and product expansion position it well to capitalize on the ongoing digital shift.

A slowdown in growth amid the reopening of retail locations and increased investments has weighed upon Shopify stock. However, given the 69% year-to-date decline in its price, continued growth in the merchant base, growing adoption of its payment solutions, focus on strengthening its fulfillment, and launch of high-value products provide a multi-year opportunity for growth.

I expect Shopify’s growth to reaccelerate as year-over-year comparisons ease. Further, its accelerated investments in business and opportunistic acquisitions provide a solid base for long-term growth. Overall, Shopify stock is trading cheap and has multiple growth vectors that support my bullish view.

Docebo The selling in tech stock weighed on the shares of the corporate e-learning platform provider Docebo (TSX:DCBO)(NASDAQ:DCBO). While it recovered a bit from the recent lows, it is still down about 32% this year. While Docebo stock has witnessed a pullback, it continues to grow its business rapidly with stellar organic sales.

Docebo’s strong annual recurring revenue, growing enterprise customer base, increase in multi-year contracts, higher revenues from existing customers, and solid retention rate augur well for growth. Further, increased deal size, new product launches, opportunistic acquisitions, and geographic expansion will likely accelerate its growth and drive its stock price higher.

Nuvei (TSX:NVEI) The general selling in the tech stocks and a short report from Spruce Point weighed on Nuvei (TSX:NVEI)(NASDAQ:NVEI). Due to the negative developments, shares of this payments technology company nosedived. However, management’s positive commentary, the reiteration of long-term growth guidance, and sustained momentum in its business led to a recovery in Nuvei stock. Despite the solid recovery from the lows, Nuvei is still down over 50% from its 52-week high, representing an opportunity to accumulate its stock.

Nuvei’s volumes and revenue are growing fast. Moreover, management expects the momentum to sustain and projects over 30% growth in both volumes and revenue in the medium term. Nuvei is likely to benefit from the accelerated pace of the digital shift. Furthermore, an increase in the number of new alternative payment methods, growing crypto demand, a large addressable market, and increased penetration of e-commerce provide a solid platform for growth. Also, its expansion into high-growth verticals like social gaming, opportunistic acquisitions, and productivity savings augur well for growth.

The post Now Is the Time to Buy Shopify (TSX:SHOP) and 2 More Tech Stocks appeared first on The Motley Fool Canada.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei Corporation and Shopify. The Motley Fool recommends Docebo Inc.

This Article Was First Published on The Motley Fool

Now Is the Time to Buy Shopify (TSX:SHOP) and 2 More Tech Stocks

Related Articles

3 Dividend Stocks to Buy as Inflation Surges in Canada
3 Dividend Stocks to Buy as Inflation Surges in Canada By The Motley Fool - Jun 25, 2022

All year long, one of the biggest stories investors have been watching is how high inflation will get. With inflation surging for months now, several Canadian stocks are being...

4 Growth Stocks That Could Make You RICH by 2030
4 Growth Stocks That Could Make You RICH by 2030 By The Motley Fool - Jun 25, 2022

Canadian investors may be frustrated in this bear market, especially as they are already battling high inflation and uncertainty in the broader economy. That said, this environment...

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years
TFSA Investors: Turn $1,000 Into $10,000 in 10 Years By The Motley Fool - Jun 25, 2022

One of the most popular “disclaimers” in investment is that past performance is not a guarantee of future performance. And it’s quite true. The market is complex...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email