Forget Reddit Stocks: Buy These 3 Unbeatable TSX Tech Stocks Instead

Instead of increasing your risks by investing in Reddit stocks, you can buy these three amazing Canadian tech stocks today.

The recent massive rally in some meme stocks has become one of the hottest topics among stock investors lately. A handful of stocks like BlackBerry, GameStop, AMC Entertainment, and Clover Health saw a sharp rally earlier this month. Unfortunately, the rally in most of these Reddit stocks has seemingly run out of steam for now, as most of these stocks saw sharp losses in the last few sessions.

Reddit stocks

The rally in these stocks picked pace earlier this year after being widely discussed on Reddit’s WallStreetBets group. The users of this subreddit apparently tried to go against institutional short-sellers and started consistently buying the stocks of selected companies — triggering a sharp rally.

But the recent sharp drop in these Reddit stocks once again demonstrated why buying stocks based on Reddit trading frenzy is too risky. It certainly isn’t something that retail investors with low to medium risk appetites should consider. However, it doesn’t mean small retail investors shouldn’t expect good returns. They can buy some cheap stocks with good fundamentals for the long term to get handsome returns. Fundamentally strong stocks could even beat most of these Reddit stocks in the long term, I believe.

Here are three Canadian tech stocks with solid fundamentals that you can buy today.

Lightspeed POS stock

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) stock is one of my favourite Canadian tech stocks to buy right now. The stock hasn’t seen much appreciation this year, as it’s currently trading with only 0.3% year-to-date gains after posting solid 149% gains last year.

Lightspeed mainly focuses on providing its cloud-based, omnichannel commerce platform to small- and medium-sized businesses. These solutions make it easier for businesses to sell their products online, manage operations, engage with consumers, and accept payments. In its fiscal year 2021 (ended in March 2021), Lightspeed’s revenue rose by 84% compared to the previous fiscal year. Its sales growth rate is expected to increase further as analysts expect its sales to more than double in the ongoing fiscal year. Long-term investors can buy its stock right now before it starts rallying again.

Shopify stock

Shopify (TSX:SHOP)(NYSE:SHOP) is another tech stock that you may consider adding to your portfolio right now. Despite the ongoing strong trend in its financials, its stock has underperformed the broader market in 2021 so far. The stock is currently trading with 8% year-to-date gains — much lower compared to more than 15% gains in the TSX Composite Index.

Shopify registered 110% YoY (year-over-year) growth in its revenue in the first quarter. Its subscription solutions sales rose by 71%, and merchant solutions sales jumped by 137% YoY for the quarter. While the company’s near-term sales growth may slow a bit in the coming quarters, its long-term financial growth outlook remains solid.

Open Text stock

Open Text (TSX:OTEX)(NASDAQ:OTEX) is a Waterloo-based enterprise software company. Its information management solutions help companies gain business insights and take the right decisions at the right time.

Despite COVID-19-related challenges, the demand for Open Text’s software solutions remained stable, as its revenues have consistently been rising for the last seven quarters in a row. Analysts expect the company’s adjusted net profit margin to expand to 27.2% in the fiscal year 2021 compared to 25.2% in the fiscal year 2020.

The shares of Open Text have also underperformed the broader market this year and trading with just 4.3% year-to-date gains. Long-term investors can buy its stock right now before it starts rallying again.

Should you invest $1,000 in CIBC right now?

Before you buy stock in CIBC, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and CIBC wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

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.

The Motley Fool owns shares of and recommends Lightspeed POS Inc and Shopify. The Motley Fool recommends BlackBerry, OPEN TEXT CORP, and Open Text and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

semiconductor manufacturing
Tech Stocks

The Smartest Small-Cap Stock to Buy With $900 Right Now

With its strong foothold in high-growth sectors, this small-cap stock can navigate economic uncertainties well and deliver massive gains.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

If I Could Only Buy and Hold a Single Growth Stock, This Would Be It

Despite strong buying on positive investor sentiment, this healthy growth stock still trades at a discount.

Read more »

Car, EV, electric vehicle
Tech Stocks

Blackberry: Buy, Sell, or Hold in 2025?

Blackberry is a high risk, but potentially high reward stock suitable for some torque in a well-diversified portfolio.

Read more »

stocks climbing green bull market
Tech Stocks

Why CAE Stock Popped 9% After Earnings

Few Canadian stocks offer the stability and growth as this one, especially after earnings.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Smartest AI Stock to Buy With $2,200 Right Now

This AI stock is posied to grow revenue and free cash flow at an enviable rate through 2028. Is the…

Read more »

Tech Stocks

The Smartest Tech Stock to Buy With $4,000 Right Now

Down almost 50% from all-time highs, this tech stock offers significant upside potential to shareholders in May 2025.

Read more »

Income and growth financial chart
Tech Stocks

2 Canadian Stocks That Could Turn $10,000 Into $100,000

If you're looking for growth and income, these two are some of the best options out there.

Read more »

money goes up and down in balance
Tech Stocks

1 Magnificent Tech Stock Down 27% to Buy and Hold Forever

Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) is starting to look severely undervalued after its latest drop!

Read more »