2 Tech Stocks That Could Easily Double Over the Next 5 Years

I’ll discuss two tech stocks that could easily double over the next five years.

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Investing can be a very daunting task. However, it’s possible for anyone to do well in the market. For newer investors, returns of 100% or more could seem really difficult to attain. However, by choosing the right stocks, you could see some stocks in your portfolio double in five years or less. The key lies in choosing smaller companies in the right industries. In this article, I’ll discuss two tech stocks that could easily double over the next five years.

This is my favourite small-cap stock on the TSX

Truth be told, there aren’t that many tech stocks that I watch very closely on the TSX. However, the companies that do interest me seem like they have the potential to be the next big thing. Take Docebo (TSX:DCBO)(NASDAQ:DCBO) for example. The company provides a cloud-based, AI-powered, eLearning platform to enterprises. Because its platform provides businesses a way to train their employees remotely, it shouldn’t come as a surprise that Docebo stock soared more than 333% through 2020.

Despite its strong performance over the past year, Docebo is still relatively small, only valued at $3.1 billion. As companies continue to offer employees the option to work remotely, it can be expected that Docebo’s business will continue to grow. In fact, since the start of the pandemic, large-cap companies such as Shopify, Facebook, and Twitter have stated that they will continue to offer opportunities for remote work, even after the pandemic.

Docebo isn’t the largest company offering eLearning platforms for enterprises. However, it has continued to show that it’s on the right track to success. In late 2020, Docebo announced that it would be partnering with Amazon to power its AWS Training and Certification services. Docebo also managed to uplist onto the Nasdaq in late 2020, providing the company with more access to capital. If Docebo can continue to attract major customers and execute its growth strategy, investors could certainly see their positions double in five years.

This company is using a proven growth playbook

Topicus.com (TSXV:TOI) is in a very unique position. Until its IPO in February, the company operated as a subsidiary of Constellation Software. For those that aren’t familiar, Constellation Software is a company that has made a name for itself by acquiring vertical market software companies and helping elevate those acquisitions into excellent businesses.

The strategy that Constellation Software follows is shared on a need-to-know basis within the company. That means that few outside of the company will ever truly know how it’s achieved its massive success. Topicus is one business that is in the know. This means that even though Topicus is a small company with a long road to success ahead of it, it’s in a much better spot than many other companies would be in its position.

The ties between Topicus and Constellation Software don’t end there. Six executives from Constellation Software, including its CEO Mark Leonard, sit on Topicus’s board of directors. This means that Topicus has direct access to individuals with tons of experience in the area of tech acquisitions. If Topicus can learn from those individuals quickly, another doubling in Topicus stock could be around the corner. Since its IPO in February, Topicus stock has already gained 117%.

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. 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 Jed Lloren owns shares of Docebo Inc., Shopify, and Topicus.Com Inc. The Motley Fool owns shares of and recommends Amazon, Constellation Software, Docebo Inc., Facebook, Shopify, Topicus.Com Inc., and Twitter. 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.

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