1 Tech Stock I’d Buy Before Shopify

Shopify (TSX:SHOP) stock might be stagnating, which could mean this other tech stock is at a prime advantage.

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If there is one company that practically every Canadian knows, as an investor or not, it’s certainly Shopify (TSX:SHOP). Shares of the stock absolutely surged to four-digit share prices before a stock split. Yet since then, even with some growth in 2023, the company has stagnated so far in 2024.

So, while Shopify stock has been a stellar performer in the past due to its rapid growth and market leadership, recent performance and market conditions suggest a more cautious approach. The slowing growth, profitability challenges, and high valuation have led analysts to recommend holding the stock for now.

Investors should keep an eye on Shopify’s execution of its strategic initiatives and broader economic conditions to assess future opportunities for the stock. With that in mind, now is perhaps the time to consider this other top tech stock.


Shopify stock isn’t the only tech stock out there that investors should look for high growth. In fact, remember when investors were bragging about buying at $35? Well you might have that opportunity with Tucows (TSX:TC) stock instead.

TC stock is an internet services company that provides a range of services including domain name registration, wholesale internet services, and telecommunications solutions. The tech stock operates in multiple segments including domain registration (via its subsidiary OpenSRS), retail domain services (Hover), and mobile services (Ting Mobile).

The company’s domain registration and Internet services provide a steady stream of recurring revenue, contributing to financial stability. Furthermore, TC stock has been expanding its fibre internet services, aiming to provide high-speed internet in underserved markets. This initiative aligns with the growing demand for reliable internet connectivity.

Recent moves

Recently, Tucows has demonstrated consistent revenue growth driven by its domain registration business and the expansion of its mobile and fibre internet services. The company’s strategic focus on recurring revenue streams and market expansion positions it well for continued growth. 

What’s more, Tucows has demonstrated solid revenue growth. For example, the company reported $87.46 million in revenue for the first quarter (Q1) of 2024, an 8.74% year-over-year increase. This growth is supported by strategic investments and consistent performance across its business segments.

Furthermore, analysts have a generally positive outlook on Tucows stock due to its diversified revenue streams and growth potential in the fibre internet market. One analyst recently initiated coverage with a “neutral” recommendation, acknowledging the company’s promising growth but also noting the need for cautious optimism given market conditions.

What to watch

The key to this tech stock is it needs to achieve profitability. Tucows has faced challenges with profitability in recent quarters. For Q1 2024, the company reported a net loss, continuing a trend from previous quarters where investments in growth initiatives, especially in Ting Internet, have impacted short-term earnings. Even so, revenue grew 8.74% year-over-year increase in Q1 2024 to $87.46 million, so the net loss looks as though it will be chipped away.

The tech stock’s share price has experienced fluctuations driven by its earnings reports and market reactions to its growth strategy. For example, after announcing substantial investments in Ting Internet, the stock saw some volatility as investors weighed the long-term benefits against short-term profitability concerns.

Yet this investment should eventually pay off. While Tucows continues to invest in its long-term growth, recent earnings momentum has been hampered by short-term losses. The share price has been volatile as the market reacts to these dynamics. Despite this, the company’s solid revenue growth and strategic expansion efforts position it well for future gains once these investments start yielding returns.

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 Amy Legate-Wolfe has positions in Shopify. The Motley Fool has positions in and recommends Shopify and Tucows. The Motley Fool has a disclosure policy.

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