The Canadian benchmark index has cooled slightly after achieving a new all-time high as concerns over an economic slowdown eased. Despite this upward trajectory, some of the technology stocks haven’t followed suit, showing weaker performance compared to the broader market.
For instance, Shopify (TSX:SHOP), Lightspeed (TSX:LSPD), and WELL Health (TSX:WELL) remain well below their previous highs, even as broader sentiment improves. As these Canadian stocks are trading at a discounted valuation, let’s explore what’s behind their recent performance and whether now might be the right time to buy in.
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Is Shopify stock a buy now?
Shopify’s stock has faced pressure recently, mainly due to broader economic uncertainty that could impact consumer discretionary spending. However, the company’s underlying fundamentals remain strong, and its solid financial performance suggests that the stock could be poised for a rebound, making it an attractive option for long-term investors.
In the first quarter, Shopify reported a robust 27% increase in revenue along with a 15% free cash flow margin. This marks the eighth straight quarter with revenue growth exceeding 25%. Moreover, its Gross Merchandise Volume (GMV) has grown by over 20% for seven consecutive quarters. This track record highlights Shopify’s ability to scale profitably and deliver sustainable long-term earnings.
Several growth drivers could help propel Shopify stock higher. Shopify’s offline and B2B operations are gaining traction, generating strong GMV. Its international business is also delivering solid growth. Another key growth area is Shopify Payments, which reached a 64% GMV penetration in the first quarter and expanded into 16 new markets, strengthening its leadership in the omnichannel commerce space.
Despite economic challenges, Shopify’s expanding merchant base, global footprint, and strong financial metrics indicate resilience and potential for sustained growth. For investors with a long-term outlook, now may be an opportune time to buy Shopify stock.
Is Lightspeed stock a good buy?
Lightspeed stock has taken a significant hit, trading well below its peak despite steady revenue growth and improving average revenue per user (ARPU). In fiscal 2025, the company reported $1.1 billion in revenue, representing an 18% year-over-year increase. Its strategy centres on high-grossing Transaction Value (GTV) customers who utilize multiple modules of its platform, resulting in improved retention, higher margins, and increased revenue per user.
Lightspeed’s ARPU rose 13% to $489, while subscription ARPU climbed 11%, reflecting strong demand for its integrated POS and payment solutions. Moreover, its investment in product development, along with cost management and customer retention efforts, positions it well to deliver solid growth ahead.
However, despite its efforts to improve its financials, Lightspeed stock has yet to rebound, remaining stuck after its steep correction. Until investor confidence returns, Lightspeed remains a show-me story, implying its recovery may still take time.
Is Well Health a good stock to buy?
WELL Health Technologies stock has faced pressure in 2025, mainly due to tariff uncertainties and a delay in revenue recognition from its U.S. subsidiary, Circle Medical. Despite this, the company’s core performance remains strong. In Q1 2025, WELL reported 1.6 million patient visits, a 23% year-over-year increase led by a 29% surge in Canadian visits and 13% organic growth.
Its Canadian operations, including WELLSTAR and clinics, continue to be a significant growth engine. Strategic acquisitions have also enhanced its tech capabilities, expanding future growth potential. The company will benefit from consistent demand for omnichannel healthcare services and its focus on boosting operational efficiency.
Backed by a healthy balance sheet, WELL Health is reducing debt and limiting share dilution, which will reinforce investors’ confidence in the stock. Moreover, its growing presence in Canada’s clinical market and a discounted valuation make WELL Health an attractive long-term investment.
