Happy April Fool’s Day, Motley Fool investors! While I’m always game for a good prank, but not when it comes to my finances. That’s why I’m going to identify three stocks where all kidding goes to the wayside, so you don’t get fooled again.
Shopify stock
Shopify (TSX:SHOP)(NYSE:SHOP) could be one of the greats. There’s no denying that. Shares ballooned from $35 in 2015 to $2,228 at all-time highs. However, today is a very different story. The drop in tech stocks, slowing growth and supply-chain demands continue to weigh on the e-commerce company. But don’t let a low share price trick you into buying Shopify stock … yet.
Right now, it remains volatile. In fact, the entire market does. And with that volatility comes the potential for tech stocks to drop again. Shopify stock is still quite new. It doesn’t have the proven track record shown by some of its much larger peers. Until that happens, and growth stabilizes, Shopify stock investors should prepare themselves for even more drops in the near future.
Lightspeed stock
Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) is another one of the tech stocks you should watch out for this April Fool’s Day. Just like Shopify stock, it remains in an industry that continues to see drops when things get tough. And for Lightspeed stock, it’s even newer with even more to lose.
Granted, it does have a different growth strategy than Shopify stock. The company has chosen to acquire businesses and grow on a global scale before increasing its e-commerce options. But that’s a lot of spending, and the company remains unprofitable. And at this rate, it could take quite some time for Lightspeed stock to reach profitability — especially as supply-chain demands continue to weigh heavily on the company.
Nutrien stock
The last one is the biggest April Fool’s joke out there. Nutrien (TSX:NTR)(NYSE:NTR) is such a good investment — especially for long-term Motley Fool investors. But not at these levels! Shares exploded with the invasion of Ukraine, with Russian crop nutrients no longer an option. However, once any type of de-escalation is announced, shares in Nutrien stock drop back again.
That makes the company volatile when it wouldn’t be, if not for the war. After all, it provides fertilizer, which is a necessity in this world with less arable land. Furthermore, it’s growing its business at a stable rate, acquiring and creating an e-commerce arm in a fractured industry.
But right now, it’s too expensive. Shares remain at $130, and that could change overnight. While I think, long term, it’s an excellent buy, I’d absolutely wait for it to drop back before buying it up again.
Foolish takeaway
I would leave Shopify stock and Lightspeed stock alone for even the next year when it comes to investing. The volatile situation on the market seems to somehow only be getting worse, if you can believe it. And tech stocks will be the first thing to go once again.
Nutrien stock, however, belongs on your watchlist. If there’s a pullback, jump on it. This could be a strong long-term hold for Motley Fool investors even decades from now.
