SCR - Forget Bitcoin and HIVE Stock! 2 Speculative Canadian Tech Stocks for Big Gains

Bitcoin and HIVE stock isn’t the only way to punch your ticket to a potential multi-bagger . There are many speculative Canadian stocks out there that I believe have a superior risk/reward.

While HIVE stock has been one of the highest-flying names over the past year amid Bitcoin’s latest move higher, I think many could be at risk of holding the bag once the crypto trade inevitably sours again. For young investors who have the disposable income to risk on a so-called moonshot bet, there are many early-stage growth stories that are well worth the risks.

In this piece, we’ll have a look at two top speculative plays that venturesome Canadian investors should look to if they’re hungry for upside. So, in order of riskiest to least risky, let’s have a brief look at each:

Score Media and Gaming

Score Media and Gaming (TSX:SCR) (NASDAQ:SCR) is behind the popular sports app, theScore. I use the app personally to track my favourite sports teams, and I must say, I’m a huge fan. With the legalization of single-game sports betting underway, Score will have a shot to capture a potentially massive Total Addressable Market (TAM) that could be worth north of US$5 billion, according to the folks at Score.

With wonderful managers running the show, I think Score Media has a breakaway to the emerging market and wouldn’t at all be surprised if DraftKings ended up gobbling up the name at some point in the future. In any case, I’d look to buy shares after the latest sell-off. The stock is down over 40% from its highs, making the name a compelling long-term bet in my books.

Goodfood Market

Goodfood Market (TSX:FOOD) is another hidden gem of a growth stock that got pummelled over 40% after last month’s nasty tech sell-off. The meal-kit delivery firm has been spreading its wings across the country amid the pandemic. Margins have been on the uptrend, and I do think the firm can build upon its strength as it looks to pass on the value proposition to its subscribers.

As you may know, meal kits are all about the “send a free meal to someone you know” marketing campaign. While such promos to new customers are great for getting a leg up over the competition, most notably Hello Fresh and Chef’s Plate, I think the key to continued success will be in low-cost offerings and providing value to existing customers.

Like telecoms, the meal-kit market has virtually no switching costs. As such, the real winners will be determined by firms that have what it takes to retain customers. Quality and low-cost will dictate the winner, and right now, I think Goodfood’s margins suggest they’ll be a winner in the pricing race to the bottom.

Two spec tech plays better than Bitcoin and HIVE stock?

Both Score Media and Goodfood stocks are not for the faint of heart. They’ve been nearly cut in half from their all-time highs and there’s nothing stopping them from being cut it half again should U.S. bond yields continue soaring towards 2% or even 3%, which would be disastrous for growth stocks.

If you’ve got money to speculate with, both names are worth a nibble. And both, I believe, could outperform HIVE stock and Bitcoin over the next 18 months.

The post Forget Bitcoin and HIVE Stock! 2 Speculative Canadian Tech Stocks for Big Gains appeared first on The Motley Fool Canada .

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market.

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