Canadian tech stocks have seen a spectacular rally in the last few months, driven by several factors, including declining interest rates and easing inflationary pressures, which have encouraged investors to buy back into growth-oriented sectors. In addition, recent U.S. presidential election results, in which Donald Trump was re-elected, have sparked renewed discussions around trade policies and economic growth, indirectly benefiting the tech sector.
While valuations of many growth stocks in my portfolio have surged in recent months, I believe their potential for long-term growth remains intact. That’s why any market pullback in the coming months could be a golden opportunity for long-term investors to add more shares of such fundamentally strong stocks. In this article, I’ll share two Canadian stocks I already own and would happily buy more of if their prices dip.
BlackBerry stock
After struggling for over a year, BlackBerry (TSX:BB) seems to be attracting investors’ attention in recent months. That’s why the stock of this Waterloo-based enterprise software company has risen 16.5% over the last three months to currently trade at $3.61 per share with a market cap of $2.1 billion.
Besides the broader market rally, investors’ renewed interest in BlackBerry could be attributed to the improving performance of its cybersecurity and Internet of Things (IoT) segments. In the second quarter (ended in August 2024) of its fiscal year 2025, BlackBerry’s total revenue climbed by nearly 10% YoY (year over year to US$145 million due to the strong performance of its IoT and Cybersecurity divisions. IoT segment revenue grew by 12% YoY, reaching US$55 million, while cybersecurity revenue increased by 10% to US$87 million.
In addition, BlackBerry’s operational efficiency showed significant improvement in the most recent quarter, helping it achieve breakeven adjusted earnings. I expect its ongoing cost-optimization efforts and continued focus on developing artificial intelligence and machine learning-powered solutions for businesses to accelerate its financial growth in the years to come. That’s why I wouldn’t hesitate to add more shares of BlackBerry to my portfolio if its stock sees a pullback.
Shopify stock
While Shopify (TSX:SHOP) is known for its eye-popping returns that have made many investors rich, I recently bought this top tech stock for my portfolio. Despite being too late to catch its early meteoric rise, I’m not at all concerned about missing out on Shopify’s potential for long-term growth, as the growth story of this e-commerce platform giant is far from over, in my opinion.
After rocketing by 69% over the last three months, Shopify stock currently trades at $160.08 per share with a market cap of $206.7 billion.
Despite the ongoing macroeconomic challenges, Shopify’s sales have risen 23.5% YoY over the last 12 months to US$8.2 billion. Its recent cost-cutting measures and innovative product launches seem to be paying off as its profitability is continuing to improve. In the last four quarters combined, its adjusted earnings have risen by 150% YoY to US$1.15 per share, which continues to beat Street analysts’ expectations by a huge margin.
Given its outstanding financial performance and strong fundamental outlook, I’d definitely consider adding more shares of Shopify if it witnesses a correction in the coming months.
