With the TSX Index continuing to move sharply in both directions, young tech-savvy investors may wish to pick up the hardest-hit bargains while the AI trade continues to inch lower. Undoubtedly, there seems to be new tariff news on a daily basis, and most of it is sure to give new investors a surge of anxiety. The key is not overreacting to such comments, especially given most other investors have already had the chance to do so.
Either way, riding out the volatility and taking advantage of the overblown dips could continue to prove a wise long-term strategy for those looking to kickstart their Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) retirement funds. Of course, not all fallen stocks are bargains, especially those that stand to lose an edge as 25% tariffs come into effect. Notably, the auto tariffs could weigh heavily on the auto-related names for quite some time.
And until Trump backtracks, the pain could amplify in the coming weeks and months. Indeed, the market hates tariffs, not just because of their effect on the economy or the supply chain but because of the massive uncertainty they cause. As you may know by now, retail investors just hate uncertainty. And right now, uncertainties couldn’t be more elevated, with tariff news likely to pick up going into the month of April.
In this piece, we’ll have a closer look at a few battered tech stocks that I think may provide long-term investors with a discount to their intrinsic worth. Indeed, it’s tough to buy a stock after a painful decline in such an uncertain climate. However, if you want the biggest discount, sometimes it just makes sense to start buying despite the non-stop negativity you’ll hear from the folks on Wall and Bay Street.
Personally, I think the tech scene offers some of the best deals today. Here are two worth watching closely.
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Shopify
No surprises here. Shopify (TSX:SHOP) stock looks like a great pick up while it’s back below $150 per share. Of course, shares seem pricey at 66.1 times trailing price to earnings (P/E). However, the firm has growth in its veins and artificial intelligence (AI) tailwinds that may help it continue to outgrow its peers in the e-commerce scene. Recently, the company invested in an AI coding startup called Graphite.
Though the bet was quite small, I do think that it shows us all just how serious Shopify is about the AI opportunity. Indeed, as one of the most underappreciated AI beneficiaries in the Canadian market, I’d not sleep on the name, even if 2025 ends up being a recession year. As one of the most innovative tech titans on the TSX, buying on the latest plunge may prove wise for those with at least a three-year investment horizon.
Kinaxis
Kinaxis (TSX:KXS) is another solid option that tech investors may wish to buy on the dip. The supply-chain management software developer trades at $156 and change after falling nearly 32% below its all-time highs not seen since 2021. Though it’ll be a long road to new highs, I think that the latest quarter had some slight positives.
Sure, the company just broke even for its latest quarter, but sales growth is still on the right track. And if tariffs weigh heavily on supply chains around the world, perhaps Kinaxis’s solutions could experience a jolt in demand. Either way, the stock looks highly underrated right here.
