Technology stocks encountered turbulence in late February and early March. Rising bond yields triggered volatility for North American tech stocks. These equities had been riding a red-hot wave since the March 2020 market pullback. Today, I want to look at two tech stocks on the TSX that have been very volatile in early 2021. BlackBerry (TSX:BB)(NYSE:BB) and Score Media (TSX:SCR)(NASDAQ:SCR) are two exciting stocks that are worth your attention. Which is the better buy? Let’s dive in.
Can BlackBerry catch up to its biggest competition?
BlackBerry stock started to gain serious momentum in December 2020. Back in January, I’d suggested that the stock could make Canadians rich this year. I should have kept that target within the very week of publication. BlackBerry was swept up in the GameStop craze, spurring it to a 52-week high of $36.00. However, this momentum burnt out and it fell back below the $20 mark before January came to an end.
Shares of BlackBerry have still climbed 75% in 2021 as of close on March 12. Investors can expect to see its final batch of fiscal 2021 results at the end of this month. The company has a promising footprint in high-growth sectors like cybersecurity and automotive software development. It announced a collaboration with Amazon in the automotive software space in late 2020.
These prospects are exciting, but BlackBerry still lags many of the heavy hitters in cybersecurity and automotive software development. Investors chasing growth are hungry for bigger strides for the Waterloo-based company. Still, this excitement has fueled a 210% rise in the year-over-year period. Canadians should watch its next earnings release closely.
Why Score Media is ready to cash in on sports betting in Canada
GameStop has gained a second wind in early March. However, I’d suggested that investors should direct their attention to a different kind of gaming stock. No, I’m not talking about Fortnite or Red Dead Redemption 2. Score Media is poised to gain as Canada prepares to legalize single-game sports betting. It hopes to outpunch powers like DraftKings and others in the domestic sports gambling market.
In late 2020, the Trudeau government opened the door for legal single-game sports betting in Canada. Like with cannabis, federal legalization does not mean that the industry will be free and clear. The buck will back to the provinces, who may differ on how they choose to regulate this lucrative space. Still, it is an exciting time for Score Media.
Shares of Score Media have climbed over 100% in 2021 on the back of this anticipation. The stock is up over 900% year over year. As exciting as this is for Score Media, investors should be cautious. Hype can transition quickly into “prove it” mode after legalization, as we saw with the cannabis space in 2018. Score Media will need to punch above its weight class in the sports betting space.
Which stock should you buy right now?
I love the potential of the legal sports betting space in the near term. BlackBerry is a promising long-term play, but it is still a long way from meeting expectations. Score Media stock has dripped sharply from its February highs. This may be the perfect time to buy the dip ahead of legalization in Canada.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and GameStop. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.