2 Tech Stocks to Buy Like There’s No Tomorrow

Shopify (TSX:SHOP) stock is looking way too cheap for long-term investors looking to grow their wealth in a TFSA or elsewhere.

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There were so many prominent bears as the markets turned a bit sideways (slightly lower) in April. Indeed, at the time, tech stocks led the bull run. And though the correction (defined as a full 10% fall) never materialized, the partial correction (if that’s even a thing!) struck fear into the hearts of some.

As it turned out, the single-digit percentage fall was a great buying opportunity. And though the “tech bubble” crowd may be inclined to go back into hibernation as another earnings season hits us, I’d be more willing to look to huge dips for value rather than running to the hills.

It’s never easy to buy on dips, but I just do not see the stage set for a tech bubble first. Even with the more artificial intelligence (AI)-concentrated tech companies, I don’t see excessive froth, especially not compared to their medium-term growth runways. Indeed, AI is a big deal. And it does deserve a premium.

Though a dot-com-esque type of premium is probably unwarranted, I just don’t see such levels of euphoria quite yet. And until tech multiples really start to swell to ridiculous levels, I’d look for the sector as a main pillar for any growth-focused Tax-Free Savings Account (TFSA) fund.

Here are two tech stocks on my watchlist that I’m tempted to buy should the May relief rally begin to wane.


Shares of OpenText (TSX:OTEX) fell off a cliff as the firm clocked in a rather soft outlook for its fiscal year 2025. Undoubtedly, it’s not weak earnings that have been the chaos driver for tech stocks this earnings season; it’s been guidance. Now that expectations have shot lower (various analysts downgraded the stock on the softer guide), though, I view OTEX stock as a great contrarian play for investors who aren’t afraid of substantial volatility.

The stock has now lost 45% of its value from its 2021 peak. Though it’s easy to throw in the towel, I’d urge investors to think longer term. The company is incredibly innovative, with exposure to some of the more compelling tech trends (think cybersecurity, cloud, and AI).

As AI becomes bigger, I don’t expect demand for top enterprise information management software to grind to a halt. If anything, the latest round of soft guidance is just a near-term pressure point that I suspect we’ll all be looking back on five years from now.


Shopify (TSX:SHOP) is another great tech stock that looks appealing after its recent selloff. Though shares are starting to rebound already after briefly falling below the $100 mark, as investors brace themselves for the company’s latest quarterly results, I continue to see the e-commerce innovator as a must for young Canadian investor portfolios.

Many analysts at some big banks have praised the stock following its spring-time plunge. Though only time will tell if shares of Shopify will retreat below $100 again (it’s at $105 and change today), I think a rough earnings season could open up a better entry point for value investors seeking explosive long-term growth.

Personally, I think investors are upbeat ahead of earnings. With pretty realistic estimates for the quarter, I would not be against buying ahead of the quarter. Just be ready to average down just in case there’s some guidance that fails to impress.

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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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