Today is the last day of trading before the new year. Because of this, we can expect a lot of activity to occur throughout the day. Funds and retail investors alike will be trimming positions and adding companies into their portfolios in anticipation of a new trading year. In this article, I will discuss two companies that investors should consider holding before we turn the calendar over to a new year.
The world is becoming more digital
Over the past few years, we have seen the world become more digital. Many enterprise processes from payments, accounting, due diligence, and more are relying on cloud-based systems and artificial intelligence. Docebo (TSX:DCBO)(NASDAQ:DCBO) is an up-and-coming contender in the enterprise learning space. The company offers a cloud-based e-learning platform.
Using its artificial intelligence-powered software, training managers are able to assign, monitor, and modify training assignments more efficiently. Docebo has kept busy through 2020. Over the past year, the company has managed to accomplish many feats, like securing a multi-year partnership with Amazon and its American IPO.
As of this writing, the stock is up more than 380% since the start of the year. Since my first article covering the company, Docebo stock has gained over 215%. Due to its exceptional leadership, promising partnerships, and industry-leading position, I remain very bullish on Docebo over the next year.
E-commerce is going to sweep the world
There are so few industries that have the ability to change human behaviour at a global scale. Over the past few years, we have seen the rise of e-commerce. As common as it may seem today, online shopping still only accounts for a small fraction of all retail sales worldwide. In Canada, online shopping peaked at 11% of all retail sales in April 2020. As this industry continues to grow, companies like Shopify (TSX:SHOP)(NYSE:SHOP) will continue to grow.
Because of the COVID-19 pandemic, we have seen the adoption of e-commerce accelerate much quicker than anticipated. In the United Kingdom, online shopping accounted for a staggering 33% of all retail sales in April 2020. In the following months, physical retailers regained market share. However, online shopping quickly accelerated once again in November 2020, as COVID-19 cases began to reach new heights.
With the Christmas season behind us, Shopify and other e-commerce enablers are poised to report outstanding numbers next quarter. Over the past two weeks, Shopify stock is down about 10% from its recent highs. This provides investors with an excellent opportunity to add to their positions as we head into the new year. I have complete confidence that the company will continue to build off its 180% gain in 2020.
Today marks the final day of trading in 2020. Investors should evaluate their portfolios as we head into a new trading year. Two companies that investors should consider adding to their portfolios are Docebo and Shopify. These two companies lead their respective industries and seem poised to continue growing after red-hot performances in 2020.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
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 owns shares of Docebo Inc. and Shopify. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Shopify, and Shopify and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.