Canada markets close in 1 minute
  • S&P/TSX

    20,186.28
    +4.36 (+0.02%)
     
  • S&P 500

    3,901.26
    +0.47 (+0.01%)
     
  • DOW

    31,257.99
    +4.86 (+0.02%)
     
  • CAD/USD

    0.7795
    -0.0004 (-0.05%)
     
  • CRUDE OIL

    112.70
    +0.49 (+0.44%)
     
  • BTC-CAD

    37,605.37
    -1,093.46 (-2.83%)
     
  • CMC Crypto 200

    652.76
    -20.62 (-3.06%)
     
  • GOLD FUTURES

    1,842.70
    +1.50 (+0.08%)
     
  • RUSSELL 2000

    1,767.51
    -8.71 (-0.49%)
     
  • 10-Yr Bond

    2.7870
    -0.0680 (-2.38%)
     
  • NASDAQ

    11,354.50
    -34.00 (-0.30%)
     
  • VOLATILITY

    29.44
    +0.09 (+0.31%)
     
  • FTSE

    7,389.98
    +87.24 (+1.19%)
     
  • NIKKEI 225

    26,739.03
    +336.19 (+1.27%)
     
  • CAD/EUR

    0.7379
    +0.0014 (+0.19%)
     

Tech Stock Crash: Time to Buy 2 Stocks at Bargain Prices

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
edit Sale sign, value, discount
edit Sale sign, value, discount

Written by Nicholas Dobroruka at The Motley Fool Canada

After an incredibly strong year in 2021, the Canadian market is off to a rocky start this year. The S&P/TSX Composite Index is already down a couple of percentage points in 2022. But it’s the recent volatility in the stock market that, unsurprisingly, has some investors in panic mode.

In the short term, now may not be the most opportunistic time to be investing. It’s anybody’s guess as to how long this selloff will last. In the long term, though, now would be a very wise time to load up on high-quality stocks that are trading at a discount.

It’s easier said than done to be a buyer when stocks are tanking. But I’d urge investors to follow Warren Buffett’s advice of being greedy while others are being fearful.

Investing in high-growth tech stocks

Growth stocks, particularly in the tech sector, have been among the hardest hit over the past several weeks. Many tech companies already had a rough year in 2021 and 2022 hasn’t started out any better.

Even with the recent selloffs, the tech sector is definitely not a cheap place to be investing. Valuations of many of the top tech stocks on the TSX trade far higher than most other areas of the stock market. The reason why investors are willing to pay a premium to own a top growth stock is for the chance to earn market-beating gains.

If you’re investing for the next five years or longer, I’d strongly recommend picking up shares of a few different tech companies while these prices last. I’ve reviewed two top tech stocks that I’m already a shareholder of but will be looking to add to my positions very soon.

Shopify

Shopify (TSX:SHOP)(NYSE:SHOP) may be valued at a market cap over $100 billion, but I don’t think this tech stock is anywhere near done growing just yet. Year-over-year quarterly revenue growth soared close to 50% in the company’s most recent quarter.

Shopify has been one of the top growth stories for Canadian public companies. Shares are up over 3,000% since the tech stock went public in 2015. In comparison, the Canadian market is up less than 50%.

Today, Canadian investors can pick up shares at a nearly 50% discount from all-time highs. From a valuation perspective, Shopify is still far from a cheap stock. That being said, Shopify has never been considered a cheap investment, and I don’t expect that to change anytime soon.

Lightspeed Commerce

At a mere $5 billion market cap, Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is a much smaller company than Shopify. You could also say that Lightspeed is a far less established business than Shopify. However, I’d argue that Lightspeed’s long-term growth potential is much higher, as Shopify is far past its high-growth days.

There’s a tonne of growth potential for Lightspeed, as it continues to enter new verticals and expand internationally. In both of the company’s first two quarters of its 2022 fiscal year, it posted year-over-year revenue growth of just about 200%.

Similar to Shopify, Lightspeed is not exactly a cheap stock, even with the recent selloff. Shares are trading close to 75% below all-time highs set less than half a year ago. Still, the tech stock is up a market-beating 100% since it joined the TSX in 2019.

If you’re looking for multi-bagger gains, Lightspeed should be at the top of your watch list.

The post Tech Stock Crash: Time to Buy 2 Stocks at Bargain Prices appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Lightspeed Commerce Inc.?

Before you consider Lightspeed Commerce Inc., we think you’ll want to hear this.

Our S&P/TSX market doubling Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could be a springboard for any portfolio.

Want to see if Lightspeed Commerce Inc. made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.

Click Here to Learn More About Stock Advisor Canada Today * Returns as of 1/18/22

More reading

Fool contributor Nicholas Dobroruka owns Lightspeed Commerce and Shopify. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Lightspeed Commerce.

2022

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting