Thinking of Buying Shopify Stock? 2 Big-Time Tech Stocks Are Actually Better Deals

Alphabet (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) shares look quite cheap after the latest August pullback.

| More on:
Volatile market, stock volatility

Image source: Getty Images

Shopify (TSX:SHOP) stock is arguably one of Canada’s most innovative tech stocks. As the e-tailer moves into an uncertain environment that could include a Canadian recession, the stock is sure to continue to be a wild ride, with huge moves in both directions.

Indeed, Shopify stock’s magnitude of volatility may be too much for some older, risk-averse investors. In any case, investors must remember that volatility works both ways. On an upbeat Wednesday for the broader markets, SHOP stock surged almost 5% in a single day, while the TSX Index increased just under 1%.

Shopify stock: A wild ride that’s unlikely to calm anytime soon!

With a beta of over two, Shopify stock is a far choppier ride than the market. But one that’s still worth riding if you believe in the long-term story and its visionary CEO Tobi Lütke. Though I expect Shopify will continue to innovate as it doubles down on software while getting out of the asset-heavy logistics side, it’s tough to tell where the stock goes from here after its incredible run.

Despite the latest correction, the stock is still up more than double off its 2022 lows. And until a recession works its course, investors should be ready to dollar-cost average over time, rather than initiating a huge position all in one go!

Alphabet and Apple stock look like better bets than Shopify

In this piece, we’ll look at two alternative tech stocks that I believe are easier to value in this climate. Without further ado, consider Alphabet (NASDAQ:GOOG) and Apple (NASDAQ:AAPL), two American tech titans worth heading south of the border for at these prices!

Alphabet: A top AI stock on the cheap

Shares of Alphabet are currently going for just over 29 times trailing price-to-earnings. While that’s a tad on the high side, I do think the premium is warranted, given the hype surrounding artificial intelligence (AI) technologies and large language models. With Bard AI, Alphabet has its very own LLM to put up a fight with OpenAI and ChatGPT.

For now, ChatGPT may be the go-to generative AI of choice. But in the future, I’d look for Bard and other Alphabet technologies to gain traction. At the end of the day, Alphabet has an ocean of data with Google Search, and the AI engineers needed to create an AI-driven search product that ultimately replaces the current state of Google as we know it.

As a software search giant, GOOG stock may be a tad pricey. However, if you view it as an AI company, I view it as absurdly underpriced, especially versus the likes of a Shopify.

Apple: The iPhone and beyond!

Apple is fresh off a nasty correction but could be headed for higher highs before year’s end. Indeed, the latest iPhone is expected by some analysts to be a decent seller. Of course, the next iPhone probably won’t be revolutionary.

Each upgrade may have a few innovations, but really nothing incredible should be expected. Regardless, the iPhone is and will probably continue to be a cash cow for Apple fans. The company has the most capable smartphone on the planet and will sell many, many more devices for years to come, breakthrough innovations or not.

At the end of the day, Apple is the consumer product company to own for the long haul. Just ask Warren Buffett!

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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Joey Frenette has positions in Apple. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Alphabet and Apple. The Motley Fool has a disclosure policy.

More on Tech Stocks

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »

A worker drinks out of a mug in an office.
Tech Stocks

Want $1 Million in Retirement? 3 Stocks to Buy Now and Hold for Decades

Growth stocks such as Docebo and Celsius Holdings should help you generate outsized gains in the upcoming decade.

Read more »

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
Tech Stocks

Missed Out on NVIDIA? My Best Growth Stock Pick to Buy and Hold

A TSX growth stock is a top pick and profitable investment choice if you missed out on the ascent of…

Read more »

grow dividends
Tech Stocks

3 Tech Stocks That Could Make You a Millionaire

Given their long-term growth potential, these three tech stocks could deliver oversized returns in the long run.

Read more »

Businessman holding AI cloud
Tech Stocks

Ready to Invest in Artificial Intelligence (AI)? 2 Stocks That Are Solid Bets

These two AI stocks provide investors with strong future opportunities as AI continues to become a part of our everyday…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Down 88% from all-time highs, is Lightspeed stock a good buy in May 2024 and can the TSX tech stock…

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

Forget NVIDIA: 1 Tech Stock to Buy Instead

Here’s why Shopify (TSX:SHOP) stock could be a smart long-term buy for investors willing to look beyond NVIDIA’s impressive growth.

Read more »

Lights glow in a cityscape at night.
Tech Stocks

2 Artificial Intelligence Stocks to Buy and Hold for the Next Decade

Qualcomm (NASDAQ:QCOM) and another well-placed AI stock could drive substantial capital gains over the next decade. Here's how.

Read more »