Forget Shopify Stocks: 3 Tech Stocks Are Trading Even Cheaper


There is no doubt that Shopify (TSX:SHOP)(NYSE:SHOP) is one of the most popular growth stocks among Canadians. And lately, Shopify’s stock has been making headlines as it continues to sell out and get cheaper.

Shopify is well known due to the incredible growth it has achieved over the past few years. Over the five years from 2017 to the end of 2021, Shopify investors have earned a total return of over 2,900%. However, since the start of the year, Shopify stock has lost more than half of its value.

A high-quality title like this is definitely worth an investment as long as it’s cheap. However, there are other opportunities that I believe offer even more value today.

First, it’s important to consider a few things about Shopify. Its recent sell off is due to the earnings report released earlier this month. And the issues investors are having with the earnings report and guidance won’t be resolved anytime soon. Therefore, I wouldn’t expect a significant rally in the stock price anytime soon. Plus, Shopify’s already massive size means that naturally, over time, its growth will slow.

With all of that in mind, if you’re looking for high-quality tech stock to buy while it’s cheap, here are three that I think offer an even better opportunity than Shopify stock today.

High tech stock much cheaper than Shopify

Shopify may be down 50% year-to-date and 64% from its 52-week high, but AcuityAds Holdings (TSX:AT)(NASDAQ:ATY) is down about 90% from its 52-week high, making it one of the cheapest stocks in Canada.

Adtech stock not only has a huge upside as it grows in sales. But at the current price, AcuityAds trades at a forward enterprise value to EBITDA ratio of just 5.4x. Additionally, it trades at an enterprise value to forward sales ratio of just 0.8x.

Both of these measures are cheap for any stock. But given that AcuityAds is a tech stock that has the potential to quickly increase sales and revenue, it’s an incredible opportunity for investors today.

So if you’re considering buying Shopify stock while it’s cheap, I would strongly consider AcuityAds Holdings first.

A leading technology value in the healthcare sector

Another incredibly cheap tech title with a significant edge is WELL health technologies (TSX: GOOD). In total, WELL stock has fallen more than 50% over the past year.

At first it lost its tailwind from the pandemic, and now it’s facing a headwind as investors retreat from tech stocks. However, just like Shopify stocks, WELL’s liquidation creates a significant opportunity.

Currently, the shares are trading at a forward enterprise value to EBITDA of approximately 12x. It’s not as cheap as AcuityAds, but for a high-quality health tech stock with significant growth potential, it’s a great opportunity. Additionally, its enterprise value-to-forward sales ratio is 2.7x compared to Shopify’s, which is closer to 12x.

Therefore, if you are looking for a high-quality tech stock to buy in this liquidation, WELL is one of the best to consider.

Top Crypto Stock Trading at Massive Discount

In addition to tech stocks, cryptocurrencies have also been among the biggest losers as volatility has increased recently. So if you are looking to buy the plunge, find a high quality crypto stock such as Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) could be a great opportunity.

Cryptocurrencies sell for the same reasons as tech stocks like Shopify. As volatility increases in the markets, investors are looking for lower risk assets. So, naturally, cryptocurrencies and crypto stocks are among the early investments for investors.

However, the current economic environment has little influence on the long-term potential of the cryptocurrency industry. So, although stocks like HUT are trading low, they are among the best stocks to buy right now.

Hut’s stock is down 65% from its peak in November, about the same discount Shopify is trading from its all-time high. But with Hut 8 and the entire cryptocurrency industry offering more growth potential than Shopify over the next few years, Hut 8 seems like the best investment to make today.


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