This past year has been unlike any other in history. We have seen a plethora of companies more than double, or even triple, over the past year. That is not a very common feat, and investors should be wary moving forward. However, the Motley Fool credo states that investors should remain optimistic and invest for the long term. Therefore, the acceleration of businesses by the COVID-19 pandemic shouldn’t deter investors from adding to their positions.
Although businesses across many areas have seen their stocks climb incredibly higher, my stock universe mainly covers the technology sector. In this article, I will discuss two companies that are poised to continue growing in 2021.
The world is becoming more digital
The increasing digitization of businesses around the world is a fact of life. As human populations increase, and businesses require scaling at faster rates than ever before, companies are increasingly turning towards digital solutions. We have seen businesses turn to cloud-based and AI-powered solutions for payroll, accounting, and planning processes, among many others.
Lightspeed (TSX:LSPD)(NYSE:LSPD) and Docebo (TSX:DCBO)(NASDAQ:DCBO) are two Canadian companies that have carved out a name for themselves by providing market-leading, cloud-based platforms in their respective industries. Lightspeed provides a cloud-based POS system to small- and medium-sized businesses. Docebo provides enterprises with a cloud-based, AI-powered e-learning platform.
As more businesses have turned to these two companies over the course of the year, investors have seen the two stocks grow. Year to date, Lightspeed stock has gained 140%. Docebo has performed even better, posting a year-to-date gain of 390%!
These two companies have many catalysts ahead
Among their many catalysts, one of the most interesting factors would be the fact that Lightspeed and Docebo both recently held IPOs in the United States. This allows American fund managers to access the stocks much easier and could lead to increased purchasing pressure. For example, ARK Invest, one of the most watched investment firms, has been building a position in Lightspeed stock since its American IPO. Currently, the firm holds about 650,000 shares, a position worth more than $45 million!
The companies have also been making headlines for their recent partnerships and acquisitions. In Lightspeed’s case, the company recently announced its acquisition of Upserve. This acquisition gives Lightspeed access to more than 7,000 American customers, generating more than $6 billion in TTM gross transaction volume.
However, Docebo recently announced a multi-year partnership with Amazon. According to the terms, Docebo will be the provider of Amazon’s AWS Training and Certification offerings worldwide. This is an incredible opportunity, and it highlights the quality of Docebo’s platform compared to its peers.
As the world becomes more digital, businesses will need to adapt their systems to cloud-based platforms. Lightspeed and Docebo offer market-leading cloud-based software in their respective industries. Both companies are coming off very impressive performances in 2020. With several catalysts ahead of them, these two companies look poised to continue growing at blistering paces in 2021.
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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. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.