This September, I’m gearing up to make a number of investments. Consistent with my recent plays, I’ll likely be investing in tech. I spent the better part of the summer accumulating shares in Alibaba Group Holdings, a Chinese tech stock that is in the midst of a highly irrational and overwrought selloff. I remain bullish on BABA, but this September I’m probably going to diversify into new tech stocks I’ve never owned before.
Diversification is one of the keys to effectively managing risk, and my portfolio could arguably use a little more of it. With that in mind, here are three high-growth tech stocks I might buy in September.
Square (NYSE:SQ) is a U.S. payments company that is rapidly branching out into new and unexplored territory. It started out as a credit card reader company, with a trademark square dongle that can turn any smartphone into a point of sale terminal. Today, it has a much more varied business. It processes Bitcoin transactions through its CashApp subsidiary and is in the midst of acquiring Afterpay for $30 billion. This company has a lot going on.
At this point, the lion’s share of its revenue comes from Bitcoin transactions. I think this stock is a great way to play Bitcoin without having too much direct exposure as you would with a stock like Coinbase. So, I’m thinking about buying it in September.
Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is another fintech stock involved in the credit card processing business. This company started off as a retail POS company and later branched out into e-commerce. It saw great success with e-commerce in the COVID-19 era. In 2020, customers whose retail stores shut down flocked to LSPD’s online store offering. As a result, LSPD’s 2o20 revenue positively surged.
In its most recent quarter, LSPD’s revenue grew 220% year over year. It’s been a fantastic growth story, and it could continue as we move forward. Lightspeed is admirably positioned for the post-COVID era, as its retail POS business benefits from the re-opening, while the e-commerce business benefits from continued lockdowns. Either way, LSPD wins.
Shopify (TSX:SHOP)(NYSE:SHOP) is a stock all readers will be familiar with. Famous for its 5,400% return since 2015, it has easily defeated every benchmark since it went public that year. This year, Shopify is keeping up the momentum. In the first quarter, it grew revenue at 110%, followed by 56% in the second quarter. Those are pretty solid results.
Of course, Q2 did see some substantial deceleration. But when deceleration takes you “down” to 56%, that’s a pretty good sign. At any rate, Shopify is Canada’s most prominent tech stock and the one most likely to eventually join the ranks of FAANG stocks like Amazon, Alphabet, and Facebook. This is definitely a stock worth keeping your eye on. For me, it’s on the buy list for September.
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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Andrew Button owns shares of Facebook. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, Lightspeed POS Inc, Lightspeed POS Inc., Shopify, and Square. 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.