The S&P/TSX Index bounced back slightly to rise 26 points on March 20. Indexes in the United States were up slightly after a wild day on Monday with the data scandal at Facebook Inc. driving the NASDAQ down over 2%. The incident cast a large shadow over the company and has stirred outrage at the kind of data-driven politicking undertaken by a multitude of firms.
Facebook is now under major fire, but Big Data is not going anywhere. If anything, the more frenzied geopolitical climate will see demand rise for what some perceive as unscrupulous work done by firms like Cambridge Analytica.
Today, we will look at four companies that could also see stocks rise due to a changing technological and political climate.
Shopify Inc. (TSX:SHOP)(NYSE:SHOP)
Shopify breached the $200 mark on March 20 to hit an all-time high of $202.45 before settling in at $200.28 to finish the trading day. Shares have surged up 49.7% in 2018 thus far. The recent collapse of Toys “R” Us has demonstrated once again the transformation of the modern retail environment.
Growth in e-commerce has hurt stores that rely on traditional brick-and-mortar locations. Shopify, which reported $1 billion in sales on its platform over the Black Friday and Cyber Monday weekend in November 2017, is heading into the fiscal 2018 year after reporting profitability for the first time in 2017. It remains one of the most explosive, and expensive, tech growth stocks on the TSX.
Canopy Growth Corp. (TSX:WEED)
Canopy stock has climbed 13.2% in 2018 as of close on March 20. The federal Liberals were catapulted into power in 2015, and the promise of legalizing recreational cannabis was thought to be a key factor in its pull among younger demographics. Canopy is the second-largest cannabis producer in Canada and may soon see a listing south of the border. CEO Bruce Linton recently speculated that the cannabis market in Canada could be worth up to $10 billion, with plenty of room for growth going forward.
Constellation Software Inc. (TSX:CSU)
Constellation is a Toronto-based software company. Constellation has focused on acquiring vertical market software companies to hold for the long term. Some of its operating segments include Jonas Software, which specializes in hospitality and construction, and Perseus Operating Group, which is concentrated in home building, real estate, and pulp and paper.
Constellation stock has climbed 16% in 2018 thus far. In 2017, the company posted revenue growth of 17% to $2.47 billion and reported adjusted EBITDA of $621 million, which represented a 17% increase from the prior year.
ATS Automation Tooling Systems Inc. (TSX:ATA)
ATS Automation is a Cambridge-based company that designs and builds turn-key automated manufacturing and test systems, as well as other automation-linked services to its customers. The stock has surged 14.6% in 2018 thus far and is up 34.8% year over year. Automation is emerging as one of the most disruptive developments for the economies and workforce of the developed world. ATS Automation is a fantastic long-term hold for investors that want to take advantage.
