Investing in the stock market, especially in growth stocks, has not been a favourable trend for a while. The roller coaster of the stock market looks likely to continue for longer, as macroeconomic concerns are not subsiding soon. The possibility of a recession looming over the head of Canadian investors is keeping them cautious and on edge.
Despite rallying from time to time, the S&P/TSX Composite Index continues showing signs of uncertainty. Unable to register consistent gains, the Canadian benchmark index is up by 2.51% year to date as of this writing. Nonetheless, investors with well-balanced portfolios seeking long-term wealth growth opportunities can still look to the Canadian tech sector, specifically e-commerce stocks, for some hope.
Today, I will discuss two Canadian tech stocks in the e-commerce space you can consider keeping on your radar right now.
Source: Getty Images
Nuvei
Nuvei (TSX:NVEI) is a $5.65 billion market capitalization player in the e-commerce sector, empowering businesses and merchants with its payment processing systems. Headquartered in Montreal, its payment technology services to merchants have been a revelation for the growing e-commerce space in Canada.
With extensive international operations, it generated over half of its revenue from Europe, the Middle East, and Africa.
2022 was challenging for tech stocks across the board. Despite the industry-wide issues, Nuvei stock exhibited a 16.4% year-over-year revenue growth in 2022. It also expanded its international presence further, penetrating several key geographic locations. Analysts anticipate a substantial uptick in Nuvei stock’s revenue-growth rate this year.
As of this writing, Nuvei stock trades for $40.81 per share. Down by 38.63% from its 52-week high due to macroeconomic issues, it can be an excellent buy for long-term wealth growth.
Shopify
Shopify (TSX:SHOP) looked like it would become a household name considering the pace with which it soared on the stock market when the company became public. However, the tech sector meltdown brought Shopify stock down by several notches.
Many were worried about a substantial correction in its share prices during its rapid rise, and that did happen. As of this writing, Shopify stock trades for $80.56 per share. It is down by 62.35% from its November 2021 all-time high.
Inflation pressures in the first half of 2022 triggered a selloff throughout the tech sector, and Shopify stock felt the impact as well. That said, Shopify’s ongoing financial growth trends are impressive. Its 25.3% year-over-year revenue growth in its March-ending quarter marked the third consecutive period that the e-commerce giant beat Wall Street analyst estimates.
Up by 65.12% year to date, Shopify stock boasts plenty of potential to deliver stellar growth in the long run when macroeconomic factors become more favourable for tech stocks.
Foolish takeaway
All that said, even the top-performing e-commerce stocks can and have stumbled. Considering the persistent macroeconomic factors impacting the market, there may be more periods of short-term losses in the coming weeks. However, long-term investors understand the importance of looking several years ahead when investing in the stock market.
Shopify stock and Nuvei stock may show weakness due to macroeconomic factors in the near term. That said, the two Canadian tech stocks have the potential to weather the storm and deliver outstanding returns to investors in the long run.
