Some Canadians have lamented the relatively small size of the technology sector on the domestic market. Fortunately, the last decade has shown that there is plenty of quality to make up for the lack of quantity. This is a space that millennials should be watching closely going forward. Today, I want to look at two top tech stocks to snatch up in early August.
Here’s why millennials should scoop up this recent IPO
Nuvei (TSX:NVEI) is a Montreal-based company that provides payment technology solutions to merchants and partners in North America and around the world. This tech stock launched its initial public offering in September 2020. It shares have climbed 44% in 2021 as of close on August 5. The stock has surged 130% in the year-over-year period.
This market is geared up for big growth this decade and beyond. Grand View Research recently projected that the global payment-processing solutions market would deliver a CAGR of 14.5% from 2020 through to 2027. Nuvei is one of the best tech stocks on the TSX that offers exposure to this burgeoning space. Millennials have a long investment time horizon, which makes stocks like these even more attractive.
The company released its first-quarter 2021 results on May 10. Total volume rose 132% from the previous year to $20.6 billion. Meanwhile, Nuvei achieved adjusted EBITDA growth of 97% to $65.5 million. Moreover, adjusted net earnings per share more than tripled to $0.35. It has continued to expand its international footprint after enjoying the cash windfall from its TSX listing.
Back in April, I’d suggested that investors should snatch up this tech stock for the long term. It is pricey right now but well worth monitoring ahead of its next earnings release.
This top tech stock is a leader in the e-commerce space
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) has been a high-performing tech stock since the start of the COVID-19 pandemic. The e-commerce space achieved impressive growth in the face of the crisis as restrictions and lock downs shifted consumer habits. This Montreal-based company provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses.
Shares of this tech stock have climbed 40% in the year-to-date period. The stock is up 191% compared to the same time in 2020. Millennials should seek exposure to high-performing companies in the e-commerce space. This is an area that is well positioned for strong growth in the 2020s.
This company unveiled its first-quarter fiscal 2022 results on August 5. It posted another stunning quarter, as revenue shot up 220% and gross transaction volume (GTV) climbed 203% to $16.3 billion. Meanwhile, its transaction-based revenue erupted, increasing 453% to $56.5 million.
Lightspeed’s incredible year has put it in the conversation with Shopify, another top tech stock and e-commerce giant. Millennials on the hunt for game-changing growth should look for tech stocks like Lightspeed to hang onto for the long haul.
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 Ambrose O'Callaghan has no position in any 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.