The price of Dogecoin soared close to 25,000% in the space of 12 months, making it the fourth-largest cryptocurrency in early May 2021. However, the meme-based cryptocurrency has since lost significant value and is down 50% from all-time highs. The price of Dogecoin climbed higher in the last year soon after Wall Street maverick CEO Elon Musk tweeted about his investment in the digital asset.
But Dogecoin remains a high-risk bet due to its poor economics and unlimited coin supply. While most cryptocurrencies are limited in circulation, there are close to 130 billion Dogecoins outstanding. Further, just 13 wallets control 50% and 99 wallets control 67% of total Dogecoins in circulation, rendering it vulnerable to manipulation and volatility.
If you’re an investor with a high-risk appetite, it makes better sense to purchase growth stocks over the long term. Here we take a look at two TSX stocks you can buy today instead of Dogecoin.
Shopify is a resounding success story
The first stock on the list is Shopify (TSX:SHOP)(NYSE:SHOP), Canada’s largest company in terms of market cap. Shopify stock has already delivered staggering returns since its Initial Public Offering (IPO) six years ago. Investors who purchased SHOP stock after it went public would have seen it generate close to 4,700% in cumulative returns. However, the tech stock has now experienced a pullback and is down 20% from all-time highs.
The COVID-19 pandemic served as a tailwind for Shopify and its peers, accelerating the shift to online shopping. Shopify sales were up over 80% in 2020 and more than doubled in Q1 of 2021. Comparatively, its adjusted earnings increased to US$2.01 per share in Q1 compared to just US$0.19 per share in the prior-year period.
Shopify stock continues to trade at a premium with a forward price-to-sales multiple of 35 and a price-to-earnings multiple of 283. However, growth stocks command a steep multiple, making Shopify a stock to buy at every major dip. Analysts tracking SHOP stock expect the company to increase sales by 52% year over year in 2021, while earnings are forecast by 30% annually in the next five years.
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Lightspeed POS is better than Dogecoin
The second TSX stock on my list is Lightspeed POS (TSX:LSPD)(NYSE:LSPD), a SaaS-based fintech company. LSPD disclosed its fiscal fourth-quarter results last week and reported sales of US$82.4 million, a rise of 127% year over year. The company also reported a loss per share of US$0.09, which was better than Bay Street loss estimates of US$0.10 per share.
Lightspeed also surprised investors after its recurring subscription and transaction-based sales jumped 137% in Q4, while average revenue per user was up 48%. The company’s management forecast sales between US$90 million and US$94 million in Q1 of fiscal 2022, indicating a growth of 154% at the midpoint compared to the year-ago period.
Bay Street expects LSPD to double its sales in fiscal 2022 to US$443 million and increase it by 33% to US$890 million in 2023. Comparatively, its loss per share is expected to narrow from US$1.16 in 2021 to US$0.37 in 2023.
Are you a fan of growth stocks like Lightspeed?
Before you consider Lightspeed POS, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Lightspeed POS wasn't one of them.
The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
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.
Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: short January 2023 $1160 calls on Shopify and long January 2023 $1140 calls on Shopify. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.