If you’re looking for tech stocks currently soaring past market norms, you don’t have to look far. But if you’re looking for stocks that not quite everyone is paying attention to in the tech world, then you have a winner.
Granted, everyone has heard of Lightspeed POS (TSX:LSPD)(NYSE:LSPD), but fewer may understand the importance of a company like Lithium Americas (TSX:LAC)(NYSE:LAC). Since the crash, Lightspeed has soared almost 250%, while Lithium Americas has skyrocketed more than 350%!
Of course, there was a crash, as I mentioned. But even still, these companies have gone back to pre-crash levels and then some. So, let’s dig into why these tech stocks are doing so well, and why I believe there is still a lot more room to grow.
The main benefit that Lightspeed has these days is twofold: it’s new to the market and entering the e-commerce business. E-commerce has soared during the pandemic, meeting points economists didn’t think would happen for another decade. And there is Lightspeed, seeing its revenue reach unprecedented levels.
Of course, the company got off to a rocky start at the beginning of the crash. Lightspeed focuses mainly on retail and restaurants for its point-of-sale service, and in the small- and medium-sized arena to boot. However, with businesses back online, these businesses realized it’s time to, well, get online!
This has meant Lightspeed saw a huge boost in recurring revenue. It works as a subscription service and is constantly reinvesting into its core business. It is quickly becoming the go-to service in this industry. It is also moving beyond its service for brick-and-mortar stores and offering an easy method of payment and analytics in e-commerce as well. And, as I mentioned, as it is only involved with small- and medium-sized businesses right now, it still has plenty of room to grow.
While Canada doesn’t have electric vehicle companies, it does have lithium companies. The connection? Lithium is the main mineral needed to create batteries for electric vehicles. There are a number of reasons why you would want to invest in a company like Lithium Americas.
First off, oil and gas producers are going to get less and less government money in the near future. After years of an oil and gas crisis, while the energy sector will likely rebound, it’s going to start being shown the door. Governments and investors alike will want to start investing in the next big thing. That thing is batteries.
Lithium will be needed to create batteries large and small in the new world of renewable energy. It also means that as the tech industry gets larger, the necessity for lithium will grow as well. Right now, the company only has two mines, but that is likely to increase as the demand grows.
If you’re looking for a quick buck, you’re in the wrong place. These companies have soared in the last few months, and that’s great, but we at the Motley Fool are long-term investors. That means investing in these companies because of the potential for business growth, not just share growth.
So, while these companies both may slow down in the months to come, I would still highly recommend each to investors. Both tech stocks have decades of growth ahead, and that’s exactly what investors like to see.