Shopify (TSX:SHOP) stock has been the must-own tech stock in Canada, but it’s not the only play in Canada’s small (but very interesting) tech scene worth owning for the long haul. If you’re a young investor, it’s worth checking out the other Canadian tech plays for a shot at greater growth over the next three to five years. Indeed, the generative artificial intelligence (AI) boom caught the world by storm last year, and it’s not about to go away just because we’ve entered a new year.
A new year does not necessarily indicate new trends or a changing of the tides. If anything, the same tech heroes that rode high on the AI boom could continue to do so. But let’s not forget about the smaller tech firms, many of which may also be investing a great deal in disruptive AI-leveraging projects.
Shopify stock is the king of Canadian tech. But it’s not the only tech play in town!
Generative AI is a disruptive force that could even the playing field a bit for mid-sized tech firms that know how to leverage their powers effectively. Of course, it’s tough to tell which companies stand to gain the most from the AI revolution. However, I think it makes sense to bet on a broad basket of relatively affordable tech firms with AI exposure to increase your odds of snagging a potential long-term winner.
The e-commerce scene could really take things into overdrive with some productivity boosts from AI. Whether we’re talking AI tools to spruce up digital storefronts or improving the customer experience (before and after purchasing), I believe Shopify is slated to be one of Canada’s likely AI winners.
Beyond Shopify, there are other firms that could also win big as they invest in the future of AI. And we’ll have a look at one in this piece.
Docebo: An AI winner in disguise?
Docebo (TSX:DCBO) was a major pandemic darling for growth investors who thought the world would be under lockdown for an extended period of time. As lockdowns lifted and work-from-home (WFH) orders turned into return-to-the-office ones, Docebo stock lost quite a bit of its lustre. However, I think the selling was quite overdone. As is typical, Mr. Market tends to overreact when things get a tad too gloomy!
At writing, DCBO sports a $1.85 billion market cap, making it a relatively small player in the Canadian tech scene. Despite its small size, the company has a nice share of a very lucrative learning management system (LMS) market. Further, the company was incorporating AI into its products well before ChatGPT impressed the world, kicking off an AI frenzy around a year ago.
Though the 2021 selloff was quite steep, it’s notable that shares have been on a nice sustained run since its mid-2022 lows. Since then, shares have gained more than 80%. And I think more good days could be on the horizon as more workforces look to bring their employees up to speed on various AI technologies. Docebo’s LMS platform can help ensure workforces are harnessing the full productivity powers of AI. And that has me very excited about the LMS market and Docebo’s growth prospects.
