Yahoo Finance 1 Canadian Growth Gem Down 54% to Buy Right Now!
Written by Joey Frenette at The Motley Fool Canada
Whenever the market heads south quickly, new investors with extra dry powder may wish to deploy some of it while investors are in a rush to sell. Indeed, some of the best bargains are available when fear and panic are in the hearts of other investors. Though stocks posted a decent recovery rally to close off last week’s session, the recent wave of volatility could make for a challenging near-term ride.
So, how does a new investor deal with such a choppy market?
Dollar-cost averaging, or buying shares of firms gradually over time (or after stocks decline), can help you keep cool when the stock market moves make it hard to. In this piece, we’ll look at one Canadian growth gem that’s shed more than half its value from peak levels.
Taking advantage of the market’s wild swings
Though the stock has recovered considerable ground since rallying off its lows, it remains an extremely choppy play that’s sure to scare out most new investors, who simply can’t fathom having one of their portfolio’s holdings down by double-digit percentage points on any given week.
Indeed, if you can’t stomach a 10-30% drop from here, the following growth stock may not be your cup of tea. However, if you’d be willing to add on such a continued drop, I think the following tech titan is worth picking up while it’s going for a nice discount.
Enter shares of e-commerce firm Shopify (TSX:SHOP), which has been moving sharply in both directions.
After the company’s incredible quarterly earnings beat, the stock spiked in August, recovering most of the ground lost during the collapse in May. Though it’s been tough sledding since the most recent post-quarter pop, I think SHOP stock is a tempting play as the firm teams up with intriguing firms from across the board.
Roblox collab could be massive for Shopify
Recently, Shopify teamed up with video game firm Roblox (NYSE:RBLX) to be its first-ever commerce partner. Indeed, it’s a rather perplexing deal that may not make a whole lot of sense on the surface, especially if you’re an older investor who’s not big into video games. For those with children, you’re probably aware of the hype surrounding Roblox.
It’s pretty much the closest thing to the metaverse right now. Players can hang out with friends and enjoy various experiences (games are just one part) in a wide range of digital worlds. Of course, hardcore gamers may scoff at the graphics. However, Roblox has a powerful ecosystem that I believe stands to get markedly better over time. Indeed, graphics will improve, and as headsets become more commonplace, I think Roblox VR could be a big deal in the future.
Back to the Shopify-Roblox collaboration. The deal will reportedly allow Roblox creators to sell products right within their own worlds. Indeed, the deal could provide Shopify the means to make a deep dive into the world of metaverse-inspired commerce. And though it’s still in the early days, I think such a move could yield considerable growth at some point down the road.
As Shopify president Harley Finkelstein put it, the deal will allow it to reach “a massive audience of 80 million daily active, highly engaged, Roblox users.”
The post 1 Canadian Growth Gem Down 54% to Buy Right Now! appeared first on The Motley Fool Canada.
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Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Roblox. The Motley Fool has a disclosure policy.
2024
