Next Shopify: 3 Stocks That Could Produce Massive Returns

Did you miss the Shopify gains? Don’t worry, you can still hit it big with these three stocks!

| More on:
Where to Invest?

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Shopify has been a major winner since its Initial Public Offering (IPO). Gaining more than 5,000% since May 2015, investors who managed to get in early have seen incredible gains over that period. As expected, many investors that couldn’t get in on the stock back then are avoiding entering positions now in fears of less impressive gains moving forward.

Fortunately, there are smaller companies that propose very exciting potential. Here are three stocks that could produce massive returns.

e-commerce needs this company

Online retail has been steadily growing over the past decade. Due to the COVID-19 pandemic, investors have seen a lot more money flow into that industry, pushing the stocks of companies operating in the e-commerce space into the stratosphere. One aspect that many investors often overlook is that e-commerce relies on the digital payments space to operate.

Every company that transacts payments online needs some sort of payment platform to complete orders. That’s where Nuvei (TSX:NVEI) comes in.

Nuvei provides an omnichannel payment platform to merchants. Using its platform, companies can transact online and mobile payments, in addition to in-person and unattended solutions. A rapidly growing company, Nuvei is already present in more than 200 global markets.

Its platform also accepts more than 450 payment methods, accepting 150 currencies and 40 cryptocurrencies. Since its IPO in September 2020, Nuvei stock has already gained 124%. At a market cap of $14 billion, this is one company with tons of growth potential ahead.

The pandemic made this an essential company

When the COVID-19 pandemic shook the world, businesses were required to operate remotely. As a result, companies needed to find new ways to train their employees. Enter Docebo (TSX:DCBO)(NASDAQ:DCBO).

The company offers a cloud-based, AI-powered eLearning platform to enterprises. Using its software, training managers can easily assign, monitor, and modify training exercises. As of May 2021, 2,333 customers rely on Docebo to power their employee training programs.

Docebo has managed to grow quickly since its inception. Securing an integration into the Salesforce platform has given the company a lot of exposure. In the back end of 2020, Docebo even managed to land a multi-year partnership with Amazon to power its AWS Training and Certification offerings.

This year, the Docebo-Amazon partnership grew to include Canada as the newest region supported by this joint effort. The regions supported also include Ireland, Frankfurt, Northern Virginia, Singapore, and Sydney. Docebo stock has gained 460% since its IPO but is still only valued at $2.5 billion.

This is one stock you don’t want to miss

Although Topicus.com (TSXV:TOI) isn’t yet a proven entity, you can’t fault investors for jumping the gun. Until this past February, Topicus had been a subsidiary of Constellation Software, one of the most prolific Canadian growth stocks. Although the company now operates as its own entity, it still receives a lot of guidance from Constellation Software. Six members of the Topicus board of directors are executives from Constellation, including its founder and president Mark Leonard.

Topicus is valued at a cool $3.5 billion, even after gaining 42% since its IPO earlier this year. The stock has certainly been one of the bright spots in the struggling tech sector. Some investors may have reason to believe that the company could become as successful as Constellation Software, given that it has the opportunity to learn from the older company without making the same mistakes.

If it can even perform half as well as Constellation Software over the next decade, investors could be looking at massive gains.

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. The Motley Fool owns shares of and recommends Amazon, Constellation Software, Docebo Inc., Salesforce.com, Shopify, and Topicus.Com Inc. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify.

More on Tech Stocks

Money growing in soil , Business success concept.
Tech Stocks

Got $1,000? Buy These 3 Top Growth Stocks

These three Canadian growth stocks could deliver superior returns over the long run.

Read more »

Man making notes on graphs and charts
Tech Stocks

TFSA Investors: 2 U.S. Stocks I’m Never Selling

Are you looking for U.S. stocks to hold in your portfolio? Here are two stocks I’m never selling!

Read more »

grow money, wealth build
Tech Stocks

TFSA Cash: Turn Your $81.5K Into $330K by 2032

These Canadian stocks have the potential to deliver average annual returns over 15% and create significant amount of wealth for…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

1 TSX Tech Stock to Buy Today and Forget for the Next 5 Years

This high-growth tech stock could multiply your invested money in the next five years if you buy it in time.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Tech Stocks

TFSA Investors: Got $6,000? Here’s How You Can Power Up Your Portfolio

Are you trying to find stocks to add to your TFSA? Here’s how you can power up your portfolio!

Read more »

Hand holding smart phone with online shop concept on screen
Tech Stocks

Shopify Stock or Lightspeed Stock: Should You Buy Either?

Shopify stock (TSX:SHOP)(NYSE:SHOP) and Lightspeed stock (TSX:LSPD)(NYSE:LSPD) are both up in the last month, but should you buy?

Read more »

Tech Stocks

Got $300? 2 Simple TSX Stocks to Buy Right Now

These two TSX stocks aren’t as popular as other names, but they are smart buys right now because both are…

Read more »

shopping online, e-commerce
Tech Stocks

Better Buy: Shopify (TSX:SHOP) or Amazon (NASDAQ:AMZN)?

The e-commerce giants in Canada and the U.S. have underperformed in 2022, although critical investments for growth are ongoing in…

Read more »