SHOP - 3 Top Tech Stocks to Buy in May
Tech stocks continue to trade with a lot of volatility. For the most part, the trend seems to be on a downturn. These two characteristics are making investors very hesitant to invest in tech stocks today. However, it’s important to remember that it’s during times like these that investors should be excited to jump into new positions. Historically, the strongest bull markets have occurred after market pullbacks. Therefore, investors could be poised for success if they manage to navigate today’s market with a calm mindset.
I still believe in this stock
If there’s one industry that excites me the most, it would be the e-commerce industry. It’s very easy to see how much more dependent consumers are on online shopping today compared to just a few years ago. Shopify (TSX:SHOP) (NYSE:SHOP) has emerged as an important player in that industry. It provides a platform and many of the tools necessary for merchants of all sizes to operate online stores.
Shopify stock has seen its share of ups and downs. For much of the past five years, it has been one of the greatest performers on the TSX . However, over the past year, Shopify stock has fallen nearly 50%. Despite this, I believe it has a bright future ahead. Today’s younger consumers are more reliant on online shopping. I believe that they will soon grow to represent a larger proportion of the global consumer base. As that happens, more companies could turn to Shopify to help power their online stores.
This industry could see a lot of growth
As the e-commerce industry continues to grow, merchants will need some way of completing those transactions. Of course, there are solutions offered by several companies (e.g., PayPal ). However, Nuvei (TSX:NVEI) (NASDAQ:NVEI) offers a very interesting solution. It provides merchants with an omnichannel payments platform. Using its platform, merchants can accept in-store, online, mobile, and unattended payments. It’s this breadth in Nuvei’s offering that I believe will set it apart from its peers.
Nuvei first made headlines when it closed the largest tech IPO in Canadian history. That means it managed to raise more money on its opening day than popular companies like Shopify and Lightspeed . After its first year of trading, Nuvei stock had gained about 275%. Today, Nuvei stock trades about 60% from its all-time highs. However, just like Shopify, I believe this stock could benefit from strong tailwinds driving its industry forward.
Remote operations aren’t going away
It’s no secret that the COVID-19 pandemic is slowly becoming a thing of the past. Many businesses have reopened and many people are finding themselves in the office again. However, for a large proportion of the population, remote work is still being relied upon. In some cases, companies have stated that they have no intention to return to the office. Although that sounds a bit extreme, it actually creates a great environment for Docebo (TSX:DCBO) (NASDAQ:DCBO) to succeed.
Docebo provides a cloud-based and AI-powered eLearning platform to enterprises. Through its history, Docebo has managed to attract many high-profile customers. This includes the likes of Amazon and Thomson Reuters . As companies continue to operate remotely, I believe more and more of those companies will eventually find themselves using Docebo’s training solutions.
The post 3 Top Tech Stocks to Buy in May appeared first on The Motley Fool Canada .
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren has positions in Docebo Inc. and Shopify. The Motley Fool has positions in and recommends Nuvei Corporation and Shopify. The Motley Fool recommends Amazon, Docebo Inc., and Lightspeed Commerce.
2022