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!
