Shopify (TSX:SHOP) stock is a great generational growth stock to buy and store away for the long run. That said, the level of volatility will not be for everyone. Indeed, with the stock nosediving just over 8% in a single trading session last Friday, questions linger as to how bad things could get for the tech trade and whether or not we’re at the start of a more substantial drawdown.
It’s impossible to know, especially as tariff uncertainties skyrocket following fresh, new Trump tariff threats against China following rare earth export restrictions. Indeed, as macro uncertainties kick things up a notch, with Trump-Xi relations looking to take several steps backward, it feels like April all over again. And while April was a great buying opportunity, it was a scary time for new investors.
At this juncture, I think Shopify stock is a great long-term name to hang onto, but if you’re a new buyer, I wouldn’t rush into the stock, especially if you’re not a big fan of volatility. You don’t have to jump into the deep end of the tech pool if you’re not yet confident with your swimming ability. And in this piece, I’ll highlight two names that I like better than SHOP shares now that they’re under a percentage point away from correcting off recent highs.
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Constellation Software
Constellation Software (TSX:CSU) is a lower-beta tech alternative that’s already shed more than 24% of its value from peak levels. Indeed, the founder may have stepped away, but the long-term narrative remains the same as it’s ever been.
With solid managers who know the small-cap Canadian software scene well, I don’t think the latest plunge in the stock is warranted. In fact, if the rest of the tech sector rolls over this October, I’d be more inclined to think shares of CSU deserve a free pass since they’ve already served so much time in the penalty box over the past three months.
In any case, I view Constellation as well-equipped to adapt in the AI age. Of course, AI is both an opportunity and a risk, given AI’s potential to disrupt software. As such, investors should monitor the situation closely as the tech tides change over time. Either way, I think Constellation has the agility to pivot if needed, as it looks to turn into a serious AI winner. Despite plunging nearly a quarter from its peak, shares aren’t exactly cheap, so investors should be cautiously optimistic rather than pound-the-table bullish.
Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) is a gold miner that’s been so incredibly hot over the past three months, soaring 43% in the timespan. Despite the surge, I do not think it’s too late to buy, especially if you’re light on gold in your portfolio and expect gold to stay above US$4,000 per ounce. With all the macro unknowns and the rise of tariff fears again, I’d say gold mining stocks are a must-have.
With a low 0.45 beta, a nearly 1% dividend yield, and ample upside if gold continues to appreciate to new milestones (could US$4,500 be the next stop?), I continue to view shares of AEM as an opportunistic bet. Given recent momentum, though, and overbought conditions, it might be worthwhile to buy a quarter position now and the rest of the position through 2026. Indeed, pullbacks can happen at any time, and investors should be ready to add to positions on weakness.
