Shopify Stock, Nuvei, Kinaxis: Is Now a Good Time to Buy These Tech Plays?

Investors should capitalize on the low share prices of these high-growth companies and benefit from the swift recovery.

| More on:
consider the options

Image source: Getty Images

The top TSX stocks from the technology sector lost substantial value in 2022 due to macro headwinds and economic uncertainty. While the operating environment has little changed, the significant correction in their price, easier year-over-year comparisons, easing of inflation, and expected moderation in the rate hikes imply that now is an excellent time to buy tech stocks. 

Thus, investors planning to invest in tech stocks should capitalize on their low prices and benefit from the recovery. But before I start discussing my top picks from the sector, let’s be clear that an uncertain economic trajectory could keep tech stocks volatile in the short term. Against this backdrop, here are my three top picks. 


Thanks to the massive correction in price, Shopify (TSX:SHOP) stock is trading at a multi-year low. Its enterprise value-to-sales (EV/sales) multiple of 7.3 is also at a five-year low. This sharp pullback presents an excellent opportunity for long-term investors to buy and hold the shares of this high-growth company. 

While growth slowed in 2022, Shopify continued to invest in its e-commerce infrastructure, which positions it well to capitalize on the growing e-commerce penetration and benefit from the structural shift in selling models towards omnichannel platforms. 

Shopify’s investment in e-commerce infrastructure, increased adoption of its POS (point of sale) and capital offerings, expansion of existing products in new markets, and addition of new sales and marketing channels through partnerships with social media companies bode well for growth. These measures are expected to drive its gross merchandise volume and merchant base. 

Overall, Shopify is poised to benefit from secular sector trends. Meanwhile, its stock is trading cheap, offering an excellent entry point. 


Shares of the Canadian fintech company Nuvei (TSX:NVEI) could be a solid investment at current levels. The stock is trading at an EV/sales multiple of 4.6, much lower than its historical average. While Nuvei’s valuation attracts, the company continues to grow at a decent pace, which should fuel the recovery. 

The company’s continued addition of alternative payment methods and investments in sales and distribution bode well for growth. Also, cross-selling and upselling opportunities at a little incremental cost, expansion into new geographies, and the acquisition of Paya will likely accelerate its growth and expand the addressable market. 

The correction in its price and multiple growth catalysts imply that Nuvei stock will deliver stellar returns in the long term. 


While macro headwinds weighed on tech companies, Kinaxis (TSX:KXS) continues to benefit from the strong demand for the company’s cloud-based supply chain management and business planning software. This is well reflected in Kinaxis’s annual recurring revenues (ARR), which continue to grow at a healthy pace. 

In Q3 (third quarter), Kinaxis’s ARR increased by 25%, reflecting an acceleration in growth rate on a quarter-over-quarter basis. Further, Kinaxis registered an organic growth of 38% in new customer wins in the nine months of 2022.   

Its growing ARR, expansion of its customer base, incremental bookings, high renewal rates, and strong backlog provides a solid foundation for growth. Further, the expected increase in enterprise spending on supply-chain management will likely support its long-term growth. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei and Shopify. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

1 Tech Stock I’d Buy Before Shopify

Shopify (TSX:SHOP) stock might be stagnating, which could mean this other tech stock is at a prime advantage.

Read more »

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »