3 Tech Stocks That Could Make You Rich

The tech sector is filled with stocks that have the potential to make investors much richer. Here are three top tech stocks!

| More on:
5G chip

Image source: Getty Images

Growth investors will often hold several tech stocks in their portfolios. This is because the tech industry is filled with companies that have innovation as a core quality. As a result, those companies have the potential to generate outstanding returns over the long run. In this article, I discuss three tech stocks that could make you rich.

An important company in a post-COVID world

When the COVID-19 pandemic first shook the business world, companies needed to find ways to adapt quickly. One important change that required attention pertained to employee training. With governments around the world enforcing business closures, in-person methods of training weren’t possible. As a result, businesses turned to companies like Docebo (TSX:DCBO)(NASDAQ:DCBO). It provides enterprises with a cloud-based and AI-powered eLearning platform.

Since its initial public offering (IPO) in October 2019, Docebo stock has already managed to gain more than 600%. The company generated a lot of attention at the end of 2020 when it announced two major news events. The first was its multi-year partnership with Amazon to power its AWS Training and Certification offerings worldwide. The second was an IPO in the United States, allowing the company to list on the Nasdaq. Both events should greatly benefit Docebo over the next decade. At a market cap of $3.2 billion, this company could still grow tremendously.

Turn back the clock on a top tech stock

Constellation Software has been one of the most successful tech stocks on the TSX. Since its IPO, Constellation Software stock has returned more than 12,000% excluding dividends! As a result, many investors have wondered whether it’s too late to start a position in the company. Fortunately, there’s a chance to turn back the clock, so to speak. Topicus.com (TSXV:TOI) is a similar company to Constellation Software in that it acquires vertical market software companies.

For those who are unfamiliar, Topicus was a subsidiary of Constellation Software until February of this year. Despite now operating as its own entity, Topicus is still heavily influenced by its former parent company. Six members of the Topicus board of directors are executives from Constellation Software, giving Topicus access to a wealth of experience. If Topicus can tap into that advantage and avoid critical mistakes early on, it could have a chance to grow just as Constellation Software has over the past two decades.

One of the best tech stocks available today

When it comes to tech stocks, my favourite pick will remain Shopify (TSX:SHOP)(NYSE:SHOP) for the foreseeable future. A company that needs no introduction, it provides a platform and all the tools necessary for merchants to operate online stores. The reason Shopify remains so attractive from an investment perspective is its growth potential. Despite already being valued north of $260 billion, the company continues to grow its revenue at high double-digit rates each year.

It’s important to note that investors likely won’t see 10 times potential from Shopify over the next decade. However, I believe that the company will be Canada’s first $1 trillion stock. This growth will be largely driven by increased e-commerce penetration around the world.

If that prediction comes to fruition, investors should see about a four times return. By any measure, a 400% return on your investment should be seen as a massive success.

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

More on Tech Stocks

Smiling diverse couple holding Christmas presents while walking through a winter forest
Tech Stocks

3 Best Tech Stocks in Canada to Buy in December 2022

Do not wait for a Santa Claus rally. Tech stocks like Nuvei (TSX:NVEI) still look attractive.

Read more »

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

Tech Selloff: 1 TSX Stock Down 76% to Buy Before it Roars Back

Shopify is a TSX tech stock that is down 76% from all-time highs. But is SHOP stock a buy right…

Read more »

Question marks in a pile
Tech Stocks

Should You Invest in Absolute Software Stock Right Now?

Absolute Software (TSX:ABST) is a tech stock that is worth your attention, as it offers exposure to exciting security markets.

Read more »

Online shopping
Tech Stocks

Should You Buy Shopify Stock If the Rate Hike Cycle Slows?

Is SHOP stock a buy after its 72% drop this year?

Read more »

Doctor talking to a patient in the corridor of a hospital.
Tech Stocks

3 Healthcare Stocks to Buy for Long-Term Passive Income

Healthcare stocks provide exposure to an essential service sector. They are also the best for passive income in the short…

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Tech Stocks

Shopify Stock Soars as Tech Stock Breaks Another Black Friday Record

Shopify (TSX:SHOP) stock jumped on the report of beating Black Friday sales records of 2021, and there's still Cyber Monday…

Read more »

stock data
Tech Stocks

Better Buy: CGI Stock or Constellation Stock?

Not all tech stocks are bad, and Constellation stock (TSX:CSU) and CGI (TSX:GIB.A) prove that. But when it comes to…

Read more »

healthcare pharma
Tech Stocks

Here’s Why I Just Bought WELL Health Stock

Although there are several high-quality stocks you buy undervalued today, WELL Health Technologies has to be one of the best.

Read more »