Forget BlackBerry (TSX:BB)! 2 Tech Stocks to Buy Instead

BlackBerry has become more than just a meme stock, but it will take time to become a reliable long-term holding again, so until then, other tech stocks might be better options.

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When it comes to stocks that have been reduced to a mere fraction of their glory-day valuation, BlackBerry (TSX:BB)(NYSE:BB) might be quite near the top spot. The former tech giant and the globally recognized cellphone company famed for its security and encryption lost the smartphone race and got left behind in the dust of its Japanese and U.S.-based peers.

Rather than going down with the sinking ship, the company reoriented itself as a cybersecurity company and a major “budding” player in the internet of things (IoT) market sphere. The company is also trying to establish itself in the electrical vehicle (EV) market. It doesn’t have a lot of debt, and its fluctuating revenues might just be enough to sustain the company.

None of that was enough to give BlackBerry’s stock a push, but becoming a meme stock did. But being dragged out of market “oblivion” by an internet community might not be the “comeback” that breeds long-term investor trust. And even if the company is poised for greatness in the future, now might not be the time to bet on it, and you would be better off with other tech stocks.

An IT company

Converge Technology Solutions (TSX:CTS) is a relatively new software/IT company. It was founded in 2016 and currently offers a decent range of IT solutions, including cybersecurity, cloud, and digital infrastructure. The company is strategically allied with most of the major players in the industry, including Amazon and Microsoft.

Most of the company’s operational avenues are quite time relevant. Advanced analytics solutions can help CTS with a strong position in the current data-driven market. It offers cloud-related and digital infrastructure solutions as well, which are major activity segments in the IT market as many businesses are going through a digital transformation phase.

The company is financially stable. It has manageable debt, a strong cash position, and its revenues, even if they aren’t growing quarter over quarter, are growing. The stock has grown over 800% since its inception and over 500% in the last 12 months. The stock is quite expensive right now, but it has also shown more resilience in 2021 than the rest of the tech sector, and now that the tech sector is climbing again, CTS might go through another rapid growth phase.

A software company

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a software company that focuses on remote learning. Its main offering is the Docebo Learning Suite, which combines a Learning Management System (LMS), content creator, analytics, etc. The company has been in the market before the pandemic, made the importance of remote learning and relevant technologies obvious to the world.

Docebo stock rose over 500% since its inception in 2019 and December 2020, and though it has come down from its peak, the decline is neither sharp nor deep (about 18.6%). The company has established an impressive presence around the globe and offices in six different countries. Most of its revenues are recurring, and the platform has over 2,300 active customers.

Foolish takeaway

While BlackBerry might become a good holding in the coming years, Docebo and CTS are tech stocks worth betting on right now. Both are relatively fresh, and even in their overvalued state, they might have a lot of growth left till they reach saturation point. If you invest now, you might be able to leverage that growth and grow your capital at an incredible pace.

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. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Docebo Inc., and Microsoft. The Motley Fool recommends BlackBerry and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon.

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