Investors have seen quite a volatile beginning to the trading year in 2025, and many might be wondering whether it’s a better idea to stick with defensive, low-beta value stocks. Market corrections can hit without much warning, and no investor wants to feel its effect. Plenty of stocks look overdue for a significant downward correction, but it’s still too early to say whether the recent volatility will lead to a sustained downturn.
Timing market corrections to make a quick profit is too risky for many investors. Instead, allocating money to the stock market with a long investment horizon might be a better approach. To this end, some investors might want to revisit investing in technology stocks.
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Look for bargains instead of timing the market
The rise of artificial intelligence (AI) and subsequent benefits for companies dealing with AI is something you cannot ignore as an investor right now. All the hype around AI might be good enough to postpone the next major correction, but that is debatable. Regardless, it would be the wrong kind of foolish to sit on the sidelines without anything invested in the tech sector amid the buzz.
Instead of lying around waiting for the next major correction to buy on the dip, it might be better to invest in shares of once high-flying stocks trading for lower than their historical highs. To this end, Shopify (TSX:SHOP) is a stock to observe better.
Canada’s blue-eyed darling stock
Shopify stock is seeing a bit of a resurgence in the stock market this year. As of this writing, the stock trades for $171.55 per share, up by 137% from its 52-week low. This tech stock has seen plenty of rollercoaster action since its debut in 2015, crashing spectacularly in 2020-2021. The tech stock became indicative of the general trend for the Canadian tech sector, effectively driving the uptick and downturns in the industry with its share price movements.
The rise of agentic AI might be what the stock needed to get back on track to substantial growth. Bear in mind that it trades for an expensive 78.74 forward price to earnings at current levels. While expensive, the tailwind through further AI-driven developments might become the wind it needs in its sails to travel to greater heights.
Foolish takeaway
Shopify stock is still the most exciting Canadian stock when you consider growth stocks. The giant in the e-commerce space has set itself up for success by providing an avenue for businesses around the world to set up, run, and manage online stores in no time. Its latest quarterly earnings saw its revenue surge by 26%, and its gross merchandise volume increased by 24%, year over year.
2022 was a challenging year for the company, but it has bounced back strongly. The launch of its new AI-powered assistant, helping merchants make better decisions, will likely drive even more growth in the coming years. While not the cheapest stock in the market, its long-term growth potential can justify the premium pricing.
