Buy the Dip: 2 Top Stocks to Watch in April

Shopify (TSX:SHOP) and another tech-driven growth stock that looks like screaming buys on the dip right now.

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Beginner investors seeking to buy their first stocks shouldn’t wait for a bubble to burst in the artificial intelligence (AI) or tech scene. Indeed, pundits may view the hottest areas of the AI-driven tech sector as getting a tad frothy. However, I’m not sure the stage is set for a repeat of the chaos that unfolded through most of 2022.

Indeed, you’ve got some pretty cheap stocks in other corners of this market. And even if tech does experience another wreck, my guess is that such plays won’t be wobbled as much as the broader markets.

In this piece, we’ll check out two intriguing stocks to watch if you seek meaningful growth at fair (or even depressed) prices of admission. Let’s get right into the name.

Apple

Apple (NASDAQ:AAPL) stock slipped below the $170 level on Tuesday on a pretty muted day for Wall Street. With a June 10, 2024, date set for this year’s WWDC event, which is reported to be full of new AI features for the latest iOS 18, investors should consider buying the dip on AAPL stock before the value-conscious growth investors look to punch their ticket.

Is Apple still a high-growth juggernaut after a few quarters of ice-cold iPhone sales? Many market participants don’t view it as such. Growth has ground to a slowdown, and as China’s economy continues sagging lower, it’s unclear when Chinese iPhone sales will surge higher. In any case, I think investors should think longer term with Apple.

Up ahead, we could have a bunch of new AI tools (especially for iOS and visionOS developers) as well as a potential international launch of Vision Pro. I think now’s the prime time to own Apple stock as other investors look to crowd into the market’s hotter AI trades, some of which seem overdue for a plunge.

Shopify

Speaking of AI, Shopify (TSX:SHOP) may very well be my favourite Canadian AI company. It’s still an e-commerce titan, but as generative AI enters the realm of digital retail, I think there will be no turning back as merchants look to incorporate it to help them hit their goals.

What can we expect from Shopify five years from now?

A one-stop-shop solution for merchants seeking to unlock the full power of AI. Whether we’re talking about AI support chatbots, predictive analytics, or AI-generated enhancements to images or item descriptions, the future looks so bright for Shopify merchants looking to get a leg up in the digital age. Perhaps Shopify’s Pro tier could include some truly advanced AI features that draw the attention of more retail heavyweights.

Further, look for Shopify to make a bigger push into the physical realm as it looks to expand its market share with its slew of loyal merchants.

Shopify is down around 13% from its recent highs but has shown signs of turning a corner more recently. Of course, SHOP stock still seems to be more of a sales growth story. However, as AI is thrown into the mix, look for margins (and sales) growth to be the name of the game.

All considered, Shopify is not a company to give up on. Not while the AI opportunity looks to work its way into the mix.

The Foolish bottom line

Apple and Shopify are two tech plays that stand out as quite cheap in a stock market that may be getting slightly on the frothy side. Of the two, I like Apple more, given its rich history of proving doubters wrong in the midst of tough economic climates.

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 Joey Frenette has positions in Apple. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Apple. The Motley Fool has a disclosure policy.

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