3 Canadian Tech Stocks That Could Make You Very Rich

The rapid adoption of technology and secular industry trends provide a solid base for outsized growth in these tech stocks.  

Two hands holding champagne glasses toasting each other with Paris in the background

Image source: Getty Images.

Investors eyeing high growth should consider adding top tech stocks to their portfolios. Tech companies grow faster and often deliver stellar returns. Take the example of Shopify (TSX:SHOP)(NYSE:SHOP), Lightspeed POS (TSX:LSPD)(NYSE:LSPD), and Dye & Durham (TSX:DND).

Shares of these Canadian tech companies have appreciated a lot in the recent past. The rapid adoption of technology and secular industry trends provide a solid base for outsized growth in these tech stocks.  

While the economic reopening could lead to normalization in demand, I expect these companies to continue to expand their market share and deliver robust sales in the coming years. Let’s dig deeper to see their performance and check what could drive these Canadian tech stocks higher.

Shopify

When it comes to wealth-creating stocks, Shopify comes to my mind first. The e-commerce company has delivered sky-high returns in the past and has gained over 5,700% in just about six years. Though it trades at a premium, I believe Shopify’s growing market share, increase in merchant base, operating leverage, and high growth justifies that. 

I expect Shopify stock to trend higher, thanks to the increased spending on e-commerce platforms. Meanwhile, a structural shift in selling models and its ability to add high-growth marketing and sales channels augur well for future growth.

I am upbeat about Shopify’s growing fulfillment network, new product launches, global expansion, and higher adoption of its payments solutions. Meanwhile, strong productivity savings and operating leverage further strengthen my bullish view. 

Lightspeed

Like Shopify, Lightspeed is another high-growth stock that has benefitted from the growing adoption of digital platforms. Its stock skyrocketed and delivered exceptional returns since it was listed on the TSX. Notably, Lightspeed stock surged over 201% in one year, thanks to the staggering growth in its revenues, higher demand for its digital offerings, and accretive acquisitions.  

Looking ahead, I expect Lightspeed to continue to grow its revenues rapidly, reflecting its growing customer base, new product launches, up-selling, and the continued shift toward omnichannel payment platforms. Meanwhile, the adoption of its multiple modules by existing customers could drive its average revenue per user and support its profitability.   

Furthermore, Lightspeed’s focus on acquisitions, expansion in high-growth markets, and acceleration in the pace of customer addition augur well for future growth.  

Dye & Durham

Dye & Durham stock is another reliable bet in the Canadian tech space. The tech stock has generated stellar returns since going public in July 2020 (to be precise, Dye & Durham stock has surged 210%), owing to its impressive financial and operating performances. Its revenue and adjusted EBITDA have grown rapidly, and the momentum could sustain in the coming years, thanks to its large and diversified customer base.

Dye & Durham has more than 50,000 active customers and a very low churn rate. Moreover, it has long-term contracts with top customers, which adds stability. Besides solid organic growth opportunities, Dye & Durham’s robust M&A pipeline, expansion in high-growth markets, and strong balance sheet are likely to accelerate its revenue and EBITDA growth rate and drive its stock higher.

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.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Tech Stocks

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Businessman holding AI cloud
Tech Stocks

AI Will Transform Everything: Investors, Be Early Adopters and Buy These 3 Stocks

Investors looking to invest in companies doing big things in AI should consider these three stocks for their portfolios.

Read more »

stock research, analyze data
Tech Stocks

Forget Shopify: These Unstoppable Stocks Are Better Buys Today 

Should you consider buying Shopify stock while rivals consider a buyout or should you go for stocks with a stronger…

Read more »

A colourful firework display
Tech Stocks

2 Potentially Explosive Stocks to Buy in March

These two growth stocks are destined for many more years of market-crushing returns.

Read more »

edit CRA taxes
Tech Stocks

TFSA Millionaires Are Learning They Can Still Be Taxed

If you day trade stocks like Shopify (TSX:SHOP) in a TFSA, you may be taxed.

Read more »

Shopping and e-commerce
Tech Stocks

Where Will Lightspeed Stock Be in 5 Years?

Lightspeed stock (TSX:LSPD) continues to be touch and go, so what might happen in the next five years?

Read more »

Technology
Tech Stocks

Here’s Why Constellation Software Is a No-Brainer Tech Stock

Are you looking for tech stocks to add to your portfolio? Constellation Software is a no-brainer!

Read more »

Businessman holding AI cloud
Tech Stocks

2 AI Stocks That Wall Street Likes Better Than Nvidia

NVIDIA (NASDAQ:NVDA) may be trendy but Shopify (TSX:SHOP) has more upside according to Wall Street.

Read more »