Forget Shopify Stock: 3 Tech Stocks Trading Even Cheaper

Although Shopify stock has sold off considerably lately and looks ultra-cheap, these three tech stocks look like they offer investors even more value.

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

Image source: Getty Images

There’s no question that Shopify (TSX:SHOP)(NYSE:SHOP) is one of the most popular growth stocks among Canadians. And lately, Shopify stock has been in the news, as it continues to sell off and get cheaper.

Shopify is well known because of the incredible growth it’s achieved over the past few years. In the five years from 2017 to the end of 2021, investors of Shopify earned a total return of more than 2,900%. However, year to date, Shopify stock has lost more than half its value.

A high-quality stock like this is certainly worth an investment while it’s cheap. However, there are other opportunities I believe offer even more value today.

First, it’s important to consider a few things about Shopify. Its recent selloff is due to the earnings report released earlier this month. And the issues that investors have with the earnings report and guidance aren’t going to be resolved soon. Therefore, I wouldn’t expect a significant recovery in the share price anytime soon. In addition, Shopify’s already massive size means that naturally, over time, its growth will slow down.

With all this in mind, if you’re looking for a high-quality tech stock to buy while it’s cheap, here are three that I believe offer an even better opportunity than Shopify stock today.

A top tech stock that’s much cheaper than Shopify

Shopify may be down 50% year to date and down 64% from its 52-week high, but AcuityAds Holdings (TSX:AT)(NASDAQ:ATY) is down roughly 90% from its 52-week high, making it one of the cheapest stocks in Canada.

The Adtech stock not only has huge upside as it grows its sales. But at the current price, AcuityAds trades at a forward enterprise value-to-EBITDA ratio of just 5.4 times. In addition, it trades at a forward enterprise value-to-sales ratio of just 0.8 times.

Both of these metrics are cheap for any stock. But considering that AcuityAds is a tech stock that has the potential to grow its sales and income rapidly, it’s an incredible opportunity for investors today.

So, if you’re looking at buying Shopify stock while it’s cheap, I’d strongly consider AcuityAds Holdings first.

A top healthcare tech stock

Another incredibly cheap tech stock with significant upside is WELL Health Technologies (TSX:WELL). In total, WELL stock has fallen by more than 50% over the last year.

At first, it lost its tailwind from the pandemic, and now it faces a headwind, as investors move away from tech stocks. However, just like Shopify stock, the selloff in WELL is creating a significant opportunity.

Right now, the stock trades at a forward enterprise value to EBITDA of roughly 12 times. That’s not as cheap as AcuityAds, but for a high-quality healthcare tech stock with significant growth potential, it’s an excellent opportunity. Furthermore, its forward enterprise value-to-sales ratio is 2.7 times compared to Shopify’s, which is closer to 12 times.

Therefore, if you’re looking for a high-quality tech stock to buy in this selloff, WELL is one of the best to consider.

A top crypto stock trading at a massive discount

In addition to tech stocks, cryptocurrencies have also been some of the biggest losers, as volatility has picked up recently. So, if you’re looking to buy the dip, finding a high-quality crypto stock such as Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) could be an excellent opportunity.

Cryptocurrencies have been selling off for a lot of the same reasons as tech stocks like Shopify. As volatility increases in markets, investors are looking for assets with lower risk. So, naturally, cryptocurrencies and crypto stocks are some of the first holdings investors trim.

However, the current economic environment has little influence on the cryptocurrency industry’s long-term potential. So, while stocks like HUT trade cheap, they are some of the best stocks to buy now.

Hut’s stock is down 65% from the high it reached in November, roughly the same discount that Shopify trades at from its all-time high. But with Hut 8 and the entire cryptocurrency industry offering more growth potential than Shopify over the coming years, Hut 8 looks like the better investment to make today.

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 Daniel Da Costa owns AcuityAds Holdings Inc. and WELL Health Technologies Corp. The Motley Fool owns and recommends AcuityAds Holdings Inc. and Shopify.

More on Tech Stocks

Lady holding mobile phone and shopping bags
Tech Stocks

The Ultimate Growth Stock to Buy With $1,000 Right Now 

Here's why Shopify (TSX:SHOP) could be the ultimate growth stock long-term investors want to consider at this current point in…

Read more »

Hands shaking over a business deal
Tech Stocks

Meet the Growth Stock I Can’t Stop Buying This Year

Topicus stock (TSXV:TOI) has been a top growth stock this year, with strong finances, a stable acquisition strategy, and more…

Read more »

grow dividends
Tech Stocks

Celestica Stock Is up 44% Since Earnings: What Investors Need to Know

Celestica continues to benefit from strong demand and production efficiencies, yet the stock remains undervalued.

Read more »

healthcare pharma
Tech Stocks

What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Based on these three top reasons, Shopify (TSX:SHOP) stock appears undervalued to buy right now.

Read more »

stock research, analyze data
Tech Stocks

What’s Going on With Lightspeed Stock?

Lightspeed (TSX:LSPD) stock has been climbing once more but is still far from its three-digit share price. So, is it…

Read more »

Target. Stand out from the crowd
Tech Stocks

Missed Out on Nvidia Stock (Again)? Buy Descartes Instead

Nvidia (NASDAQ:NVDA) stock soared yet again after earnings, passing the four-digit mark. But with shares so high, maybe this option…

Read more »

Group of people network together with connected devices
Tech Stocks

This Is the Best Overlooked AI Stock on the TSX Today

This AI stock has been a top growing in the last while, but remains overlooked despite its strong portfolio and…

Read more »