The price of Shopify (TSX:SHOP)(NYSE:SHOP) and Ethereum (CRYPTO:ETH) continue to trade below fair value levels for Motley Fool investors. Shopify stock plunged 15% after earnings, despite seeing growth for the quarter. Furthermore, Ethereum continues to trade at almost half of its 52-week highs, currently at about $3,900 per token.
So, here’s why both could be the biggest deal for Motley Fool investors to consider on the TSX today.
The titan of tech stocks
The tech stock sector certainly has had its fair share of corrections during the beginning of 2022. Of course, Shopify stock wasn’t immune. But analysts state again and again that the share price drop is certainly more than was necessary.
Shopify stock is down 38% since the beginning of 2022. It came back up slightly after the mid-January fall but has since fallen once again after earnings came out. In the report, revenue climbed over 40% year over year, beating expectations. Yet shares fell as the company announced a net loss of US$371.3 million, which came in large part from unrealized loss on equity and other investments.
Shopify stock also stated that while growth would continue, it’s bound to slow in the years ahead. One can’t expect double- and triple-digit growth forever — especially as the company ramps up its Shopify Fulfillment Network. So, yes, in the short term, there could be hairy days ahead for Shopify stock.
But that’s also what makes Shopify stock one of the best deals on the TSX today. It trades at 27 times earnings and at a relative strength index (RSI) of 42, making it just above oversold territory. And analysts still like the stock. While they’ve lowered price targets, all of them remain far above today’s share price of $940. That makes it a steal on the TSX today.
Is Ethereum bigger than Bitcoin?
Well, maybe not price wise. But if you want bigger returns, many analysts out there in the cryptocurrency world believe that Ethereum could indeed be a better bet. It’s more volatile these days, sure. Even compared to Shopify stock. But if you have the cash on hand for Ethereum over Bitcoin, then today, it’s by far a better consideration.
As fellow Fool writer Daniel Da Costa wrote in a recent piece, “The key difference is that Ethereum can run smart contracts. This gives it potential as several sub-sectors in the cryptocurrency industry grow, something Bitcoin doesn’t necessarily have.” This means Ethereum can run its decentralized finance (DeFi) ecosystem without the use of a centralized governing body.
Furthermore, Ethereum 2.0 also has a significant benefit. It aims to change from 15 transactions per second to tens of thousands. The new Ethereum would also split a blockchain to run in parallel rather than one blockchain sequence. This would make it practically impossible for theft from hackers.
And yet, the cryptocurrency continues to trade at this $3,900 price, with analysts believing it will surpass $4,000 soon. It also continues to grow at far more rapid pace than Bitcoin, leading to incredible growth. The main issue right now is storage, so that’s something for Motley Fool investors to certainly consider on the TSX today.
