Next Shopify (TSX:SHOP)! 2 TSX Tech Stocks Ready to Explode

Forget Shopify. There are better growth options on the TSX today. Here are two tech stocks that should be on your watch list today.

| More on:

Valued at a market cap of $235 billion, Shopify (TSX:SHOP)(NYSE:SHOP) is the largest company in Canada. The tech giant joined the TSX in 2015 and has been delivering market-crushing gains to its shareholders since the day it became a public company. 

Shopify’s stock price has understandably slowed, as it’s turned into a massive company. Still, the tech company is coming off a fiscal year where it delivered quarterly revenue growth near 100% in both Q3 and Q4.  

The tech stock has been more than a 40-bagger for its shareholders over the past five years, which is going to be a tough act to follow. At Shopify’s current size, I wouldn’t bet on a repeat performance over the next five years. But I certainly do not think the tech stock is anywhere near done delivering market-beating growth to its shareholders. 

Some growth investors may be turned off by Shopify’s market cap size, which is understandable. If you’re looking for a stock with serious multi-bagger potential, you may want to search for a smaller company.

Here are two top picks that growth investors will want to have on their radar today. Both companies are far smaller than Shopify and have plenty of multi-bagger growth potential. 

Tech stock #1: Lightspeed 

Lightspeed (TSX:LSPD)(NYSE:LSPD) joined the TSX in March 2019. It has since grown into a $14 billion company and seen its share rise by more than 450%. 

It’s been a great first two years as a publicly traded company, but I think the best is yet to come for Lightspeed. 

The Montreal-headquartered company made a name for itself selling point-of-sale hardware to brick-and-mortar retailers. Fast forward to today, and the tech company has an international presence helping both brick-and-mortar and online retailers in all areas of their businesses.

Lightspeed is coming off a quarter where it saw revenue growth top 125% in its 2021 fiscal Q4. The company also saw an acceleration in revenue in the last three quarters of the year. 

One of the reasons that the company has continued to grow revenue at such a fast rate is due to management’s commitment to product innovation. Lightspeed’s cloud-based products are used throughout their customers’ businesses, ranging far beyond just payment solutions.

Lightspeed stock is far from cheap, but that’s the cost of owning a top Canadian growth stock today. Shares are trading above a price-to-sales ratio of 60, so it’s likely going to be a bumpy ride for shareholders. But if you can handle the risk, this growth stock has lots of upside to be excited about.

Tech stock #2: WELL Health Technologies

Telemedicine stocks were some of the highest-gaining stocks in 2020, as the pandemic led to a sudden surge in virtual doctor visitors. Many market leaders in the telemedicine industry delivered market-crushing gains to shareholders last year. 

We’ve seen a recent cool-off in the telemedicine industry, but that should come as no surprise, as vaccination numbers continue to increase across the globe. But as a long-term investor, this is one dip that I’m ready to take advantage of. 

Shares of WELL Health Technologies (TSX:WELL) were up an incredible 400% in 2020. The pandemic created a bull run that couldn’t seem to be stopped last year. 

At one point this year, shares of WELL Health were down more than 20% below all-time highs. But after a strong run over the past two months, the $1.5 billion company is back trading right below all-time highs. 

At a share price below $10 today, this market-leading telemedicine stock doesn’t require you to break the bank. So, if you have a time horizon of five years or more, this is one growth stock that I’d strongly suggest taking a chance on.

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. The Motley Fool owns shares of and recommends Lightspeed POS Inc.

More on Tech Stocks

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

An investor uses a tablet
Tech Stocks

Canadian Tech Stocks to Buy Now for Future Gains

Not all tech stocks are created equal. In fact, these three are valuable options every investor should consider.

Read more »

dividend growth for passive income
Tech Stocks

2 Rapidly Growing Canadian Tech Stocks With Lots More Potential

Celestica (TSX:CLS) and Constellation Software (TSX:CSU) are Canadian tech darlings worth watching in the new year.

Read more »

BCE stock
Tech Stocks

10% Yield: Is BCE Stock a Good Buy?

The yield is bigger than it's ever been in the company's history. That might not be a good thing.

Read more »

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 »