Shopify, Lightspeed, and Topicus: Which Stock Could Still Make You a Millionaire?

Many investors dream of becoming a millionaire. However, choosing the right stock can be tough. Which of these top stocks could make you wealthy?

| More on:
funds, money, nest egg

Image source: Getty Images

When investors first enter the stock market, it’s common to dream of one day becoming a millionaire. However, many of those people may also believe that becoming a millionaire is out of reach. However, that may not be so true. There are many notable stocks that have created millionaires. In this article, I’ll discuss whether three companies could still make growth investors millionaires.

Can Canada’s top growth stock get the job done?

When it comes to a millionaire-making company, one of the first stocks that comes to mind should be Shopify (TSX:SHOP)(NYSE:SHOP). For one, the stock has already created many millionaires during its six-year run as a public company. Since its May 2015 IPO, Shopify stock has gained nearly 5,800%. That represents an average annual gain of 90.2% and would have turned a $10,000 investment into $589,845. Assuming an investor managed to add more shares to that initial investment, there’s a good chance they’d be a millionaire today.

Shopify has been one of the greatest growth stocks in the world over the past six years. In Q1 2021, the company reported that its quarterly revenue increased 110% year over year. In its latest earnings presentation, Shopify reported a 57% year-over-year increase in its quarterly revenue. Although these results indicate that the company is nowhere near done growing, it may be tough to become a millionaire at this point.

Shopify is already valued at $234 billion. A $10,000 investment would need to grow 100-fold, meaning the company’s market cap would skyrocket to $23.4 trillion. That’s nearly 10 times greater than Apple’s (the largest company in the world) current market cap.

Another high-flying commerce company

Investors interested in the rapidly growing commerce industry have also turned to Lightspeed (TSX:LSPD)(NYSE:LSPD). This is a company that took the financial world by storm last year during the height of the pandemic. In February 2020, investors assumed Lightspeed would get hit hard by the pandemic given that its customer base is mainly composed of small- and medium-sized businesses. However, its management team managed to make the right moves, helping its customers succeed during difficult times.

As a result of Lightspeed’s decisions during the pandemic, the company saw its stock soar more than 565% by the end of the year. Now, the stock has gained more than 1,000% since hitting its lowest point during the pandemic. At a market cap of $22.7 billion, 100-fold growth over the next decade seems unlikely. However, the law of large numbers suggests the task could be easier for Lightspeed than Shopify. This is a stock I think has great potential, but it may not make you a millionaire in the foreseeable future.

A small-cap stock with large aspirations

The key to becoming a stock market millionaire is to focus on smaller companies with excellent growth potential. For example, (TSXV:TOI) could have a chance to create millionaires over the next decade. The company benefits from its partnership with Constellation Software, a Canadian tech industry legend. By learning the ropes from Constellation, Topicus could avoid many critical mistakes, as it attempts to make history of its own.

Topicus is currently valued at a market cap of $5.4 billion. Becoming a millionaire from a $10,000 investment would require the company to reach a market cap of $504 billion. While we need to consider how massive a company that is, it would still make Topicus only about one-fourth the size that Lightspeed would need to reach in order to create millionaires. Of these three companies, Topicus is the most likely choice to make you a millionaire over the next decade.

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 Jed Lloren owns shares of Apple, Shopify, and Topicus.Com Inc. The Motley Fool owns shares of and recommends Apple, Constellation Software, Lightspeed POS Inc., Shopify, and Topicus.Com Inc. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple.

More on Tech Stocks

grow money, wealth build
Tech Stocks

$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

Growth stocks such as Dollarama and Chewy are well poised to deliver outsized gains to long-term investors.

Read more »

online shopping
Tech Stocks

Is Shopify Stock a Buy in March?

Shopify stock has had a volatile run, but fundamentals are strong, and valuations are much lower after its 71% decline.

Read more »

data analyze research
Tech Stocks

2 Top Stocks to Buy in March 2023

Given their solid financials and high-growth prospects, these two stocks are excellent buys right now.

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

Is Kinaxis Stock a Buy at 52-Week Highs?

Kinaxis stock is up 31% in the last six months, though 5% in the last year. So as the stock…

Read more »

healthcare pharma
Tech Stocks

Should You Buy WELL Health Stock After Q4 Earnings?

Given its solid financials, healthy growth prospects, and attractive valuation, I am bullish on WELL Health.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

2 Tech Stocks That Could Set You Up for Life

Canadian investors can set themselves up for the future with top tech stocks like Descartes Systems Group Inc. (TSX:DSG).

Read more »

dividends grow over time
Tech Stocks

Got $1,000? Buy These Hot Growth Stocks Before They Take Off

Investors won’t want to miss these buying opportunities. Here are three discounted growth stocks to load up on today.

Read more »

Woman has an idea
Tech Stocks

2 No-Brainer Stocks to Buy With $500 Right Now

Given their solid financials, healthy growth prospects, and attractive valuation, I am bullish on these two TSX stocks.

Read more »