Got $5,000? These 2 Tech Stocks Could Double in the Next 3 Years

Tech stocks are flying! Here are two richly-valued tech companies that I think can grow 100% before the end of 2023.

| More on:

Tech stocks drove the market to a positive year in 2020, even amid a global pandemic. 

The COVID-19 virus has had a major impact on businesses across the globe, but investors have had a front-row seat of witnessing an impressively long list of tech stocks, proving that they’re worth every penny of its frothy valuations. 

Investing in tech stocks

I will agree that valuations are getting to be uncomfortably high for some tech stocks. But just because Shopify is trading at a price-to-sales (P/S) ratio of 75 doesn’t mean I’m not banking on the tech stock to crush the Canadian market’s return over the next decade. 

If you’re looking for an investment to double in the next three years, you’re going to need to pay up. There is no such thing as a guaranteed 100% return on investment, but these two tech stocks are in a prime position double in value before the end of 2023. 

Tech stock #1: Lightspeed

One of the hottest TSX stocks in 2020 was Lightspeed POS (TSX:LSPD)(NYSE:LSPD). The tech stock was up 140% on the year. Investors that were brave enough to buy when the market tanked in March would be sitting on gains of more than 600% today.

When the pandemic first hit North America, many investors were understandably concerned as to how Lightspeed would fare. In early 2020, the tech stock’s core customers were considered to be small- to medium-sized brick-and-mortar retailers. The exact types of businesses that have perhaps suffered the most through this pandemic.

Fast forward to today, and you could argue that Lightspeed has a stronger position in the North American e-commerce market than it did before the COVID-19 pandemic first hit. 

The tech stock is coming off a quarter where it posted year-over-year revenue growth of 62%. The growth was driven by a 40% increase in customer locations, which now total more than 80,000.

The tech stock is far from cheap. It trades today at a P/S ratio almost as high as Shopify. But if you’re bullish on the e-commerce industry, this is one tech stock that doesn’t look like it will slow down anytime soon.

Tech stock #2: Docebo

Considering this tech stock was up almost 400% in 2020, growing another 100% in the next three years should not be out of the question. 

Docebo (TSX:DCBO)(NASDAQ:DCBO) saw its share price explode, as the pandemic created a massive tailwind for the tech stock. The shift to a work-from-home environment led to a surge in demand for Docebo’s technology.

The $2 billion SaaS company provides training and learning platforms for employees across the globe. The technology is powered by artificial intelligence to help personalize the learning experience for each customer. 

The platform does much more than just help train in-house and remote workers. It helps facilitate the entire training process. The platform centralizes all learning materials and keeps track of each user’s progress while helping improve productivity along the way.

At a P/S ratio of 40, shares of Docebo are still considered to be very expensive. Growth of nearly 400% in a year can do that to a stock.

Foolish bottom line

Both of these companies are very richly valued, but the growth potential is evident. Over the next three years, there will likely be high levels of volatility, but I’m betting that Canadian investors will see both tech stocks double before the end of 2023.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nicholas Dobroruka owns shares of Lightspeed POS Inc and Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »

Data center servers IT workers
Tech Stocks

Better Buy: Shopify Stock or Constellation Software?

Let's dive into whether Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) are the better options for growth investors in this current…

Read more »

nvidia headquarters with nvidia sign in front
Tech Stocks

Nvidia Just Delivered a Beat-and-Raise Quarter. There’s 1 Red Flag Investors Shouldn’t Ignore.

The chipmaker continued to benefit from robust demand for artificial intelligence (AI). But can it last?

Read more »

GettyImages-1473086836
Tech Stocks

Why Super Micro Computer Stock Is Soaring Today

The volatile stock is getting a boost from Nvidia.

Read more »

Snowflake logo in snowflake office on wall_snowflake-1
Tech Stocks

Here’s Why Snowflake Stock Skyrocketed Today

Shares of the data company are up 32% for the day.

Read more »

man touching magnifying glass button on floating search bar internet google search engine
Tech Stocks

Why Alphabet Stock Was Sliding Today

The parent company of Google is facing heat from U.S. regulators.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »