The movement of the S&P/TSX Composite Index in the last few weeks indicates that we might be in a bull market right now. As of this writing, the Canadian benchmark index is up by over 18% from its April 2025 low. Considering that the broader market is at an all-time high, many investors might wonder whether it’s the right time to invest in growth stocks.
The summertime rally is already seeing several stocks put up quite the performance in the market. Depending on various macroeconomic factors, there is a slight risk that the bull market will make way for a bearish environment. However, further growth is still on the cards, and investors with a long-term strategy will not be bothered by short-term market volatility.
The market is going strong right now, but investing too much in the hopes that things will keep improving might be a mistake. It’s always better to take a measured approach when allocating money into the market. A nominal but smart investment can turn even as little as $200 into a big sum down the line. Here’s a look at one TSX tech stock that can make it happen in the long run.
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Shopify
Shopify (TSX:SHOP) is a giant in the global e-commerce industry. The $192.79 billion market-cap company, headquartered in Ottawa, is a Canadian multinational e-commerce company that is changing the industry’s landscape. The company came into the limelight during the pandemic when tech stocks were booming left, right, and centre.
The boom in the tech space came in light of social distancing regulations, forcing people to stay at home. Online shopping became the lifeline for millions worldwide, and Shopify was one of the driving forces making it happen. It offers a platform that easily lets merchants create online stores, helping them set up shops to sell their wares online.
The company’s popularity skyrocketed, and Shopify stock briefly became the biggest TSX stock by market cap. The sell-off in 2022 came around to burn away most of its gains and brought the tech stock down to more reasonable levels. As of this writing, Shopify stock trades for $148.56 per share, down by a massive 30% from its November 2021 all-time high.
The Canadian e-commerce platform developer is recovering from the sell-off and looks well-positioned to drive growth for shareholders. More recently, its foray into artificial intelligence (AI) has made it a more attractive prospect for investors to consider. The company’s AI-powered tools are making things much better for merchants using its platform. In turn, it’s bringing in more business and performing better.
Foolish takeaway
Shopify stock might be far away from its all-time high valuation, but there is no doubt that the company itself is fundamentally solid. Yes, it might take some time for it to recover to its all-time highs and go beyond. However, the industry keeps growing, and its innovative offerings give Shopify stock the kind of runway it needs to deliver strong wealth growth through capital gains. It might be an excellent investment to consider for your self-directed portfolio.
