Tech stocks may have received a bad rap over the last couple of years, but that could certainly change in the very near future. Interest rates and inflation will eventually come down, and that could certainly be this year. With that in mind, investors will certainly shift their focus to growth stocks, and likely tech stocks once more.
So today, let’s look at three of these tech stocks that could make you a millionaire buying at these cheap levels. Especially if you hold for the next decade!
Enghouse Systems
First up we have Enghouse Systems (TSX: ENGH), which has proved to be able to achieve star status for mergers and acquisitions. The tech stock has been acquiring strong companies lately, with an attractive M&A environment coming into 2024 offering more opportunities for growth.
Most recently, the stock acquired Sonic Foundry’s Mediasite business for US$15.5 million in cash. They help organizations with recording, live streaming, and video management.
The stock ended the fourth quarter with $240 million in net cash, and can put that cash to use this year. Furthermore, it continues to ramp up its software-as-a-service (SaaS) offerings for more organic growth as well. Shares of the tech stock are up 25% in the last few months, but still down from 52-week highs.
Shopify
Another tech stock investors have likely already had on their radar, if not in their portfolio, is Shopify (TSX: SHOP). Shopify stock continues to surge after the impressive financial performance of the last year coupled with strong moves by the company. The company’s net loss of $525 million is a significant improvement from the $2.8 billion loss from earlier this year.
The commitment to cost cutting has definitely worked, and now the stock is looking for growth once more. Especially if a “soft landing” in the economy leads to more consumers getting back online once more, and gives merchants the ability to expand.
For now, shares of Shopify stock are back in the three-digit range. The tech stock has seen a remarkable 112% increase in the last year alone, and that should continue throughout this year as well. Especially in a market recovery.
OpenText
Another company that continues to look like a very attractive business these days is veteran tech stock OpenText (TSX: OTEX). OpenText stock made several moves in the last year that attracted investor attention. From investing in Micro Focus to artificial intelligence, and divesting what it didn’t need brought in US$2.3 billion to its books.
The stock is still set to outperform, even with shares up 30% in the last year alone. In fact, the stock looks more attractive than ever now that it has divested of what it doesn’t need to focus on what it does. The company is now coming off this as well as a strong last quarter, where revenue came in at US$1.5 billion, beating out analyst estimates.
MicroFocus is now looking ahead for 2024, and continuing to beat out expectations. The tech stock continues to have a solid long-term strategy of organic growth, and management will help this along. So while shares are up, there is certainly more room to run for OpenText stock.
