1 Canadian Tech Stock I’d Buy Before Shopify Stock

Shopify stock is still a good option, but this other tech stock could be even better, especially as it’s up 56% this year alone!

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Shopify (TSX:SHOP) shares continue to climb ahead of other tech stocks on the Canadian market. While Shopify stock has been climbing for the last year, it recently surged 30%, and investors are taking note.

However, there might be another tech stock to consider instead.

What happened with Shopify stock

Shopify stock climbed 30% after another solid earnings report, but that wasn’t the only reason for the jump. Shares went up as Shopify announced that it would be laying off 20% of its workforce, mostly in the management space. Furthermore, the tech stock also announced that it would be selling its logistics business to Flexport. In return, the company would receive a 13% stake in the company.

This was all great news for investors at least, as Shopify stock would now be able to put its attention back on its ecommerce business. Yet as shares rise higher, and even with analysts coming out with higher price targets, it’s looking like less of a deal.

Sure, Shopify stock is still a great buy. I’m not going to deny that. Especially with prices a fraction of what they were at all-time highs. However, it’s now looking fairly valued, and there might be another tech stock to consider instead.

An oldie but a goodie

While Shopify stock might be a good option, it still is relatively new. It hasn’t been through the major downturns of other large companies, and now we’re seeing management realize that. Which is why it might be a good time to go back to another solid tech stock, BlackBerry (TSX:BB).

BlackBerry stock also recently announced earnings that saw shares rise. However, those shares still offer a strong deal. BlackBerry stock provided not just great earnings, but told investors it expects great things over the next few years.

The tech stock announced that by 2026, sales should rise by about 54% from 2023 sales. This would be on the back of its cybersecurity business, according to management. This sent shares up 5%. Nowhere near the 30%, as BlackBerry stock still has a lot to prove, but nonetheless it was growth.

While the company forecasts 2024 revenue of $665 million and $700 million by 2026, that should rise to between $880 and $960 million, according to management. Yet while shares are still down 14% in the last year, BlackBerry stock is now up 56% year to date!

Value still there

For those who perhaps are willing to wait a bit, and for a less exciting investment, BlackBerry stock could certainly be a better option than Shopify stock right now. Seemingly, the winds are changing and sending a slight breeze over Shopify. While investors remain excited about it, that may not always be a good thing.

Instead, investors are cautious about BlackBerry stock. That’s definitely a better option if you’re hoping for a steady and stable recovery. And by 2026, you could see shares soar higher and higher as the company’s cybersecurity business continues to take off for potential investors.

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 Amy Legate-Wolfe has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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