According to an analysis by Investments Global senior account manager Chris Fisher, the tech sector is experiencing a major boom. This is thanks to the growing rate of AI and machine learning implementation, which is streamlining supply chains. Needless to say, it can be difficult for investors to have confidence in the tech sector when it was terribly overvalued during the COVID-19 pandemic.
In a post-pandemic era, stocks that previously gained immense traction are now flying under the radar as they don’t get as much attention. Chris Fisher from Investments Global names three stocks (TSX and otherwise) that, despite being household names, have fallen down investors’ watchlists.
Meta Platforms (NASDAQ: META)
Let’s start with the biggest name on the list: Meta Platforms – world-famous developer of social media platforms such as Instagram, WhatsApp, and most importantly Facebook. This year, Meta has performed much better than investors expected it to. Even though revenue only grew by 3 percent, investors are excited that the company is focusing more on efficiency rather than plans for expanding the Metaverse.
Considering how Meta is a major player in the social media domain, it offers immense potential for long-term growth. If you have bullish expectations for stocks that will gain momentum over time, this is an excellent option. Chris Fisher of Investments Global considers it a suitable option because of the company’s history of launching and developing impressive social media growth initiatives.
Constellation Software (TSX: CSU)
As one of the biggest Canadian software companies, Constellation Software creates, markets, and distributes crucial solutions for businesses. A notable aspect about the company is that many of its sales come from Europe and the US.
Within the first quarter of this year, Constellation Software has shown impressive results. Compared to last year’s first quarter, revenue grew by 34 percent. Currently, its revenue stands at US$1.9 billion. Additionally, the company’s cash flow has gone up by 27 percent and is presently at US$632 million.
In May, Constellation Software acquired Winklevoss Technologies, an organization that develops software solutions for administrative purposes. With this acquisition, the company’s share in Canada’s tech sector has grown, so Chris Fisher from Investments Global expects future growth.
Shopify (TSX: SHOP)
The biggest eCommerce platform in Canada, Shopify provides merchants with an online space to sell their products. In addition to Canada, the company operates in the United States, Latin America, Asia, Africa, Asia Pacific, and the Middle East.
Shopify impressed investors with its financial performance in this year’s first quarter. It has managed to increase revenue year by year by 10 percent, finally reaching US$116 million. In contrast to the first quarter last year, Shopify’s overall revenue has gone up to US$1.5 billion, which marks a 25 percent increase.
Not to mention, Shopify has recently launched an AI-powered shopping assistant that gives customers different suggestions based on their individual shopping habits. Considering its performance so far, Investments Global senior account manager Chris Fisher predicts that Shopify is on its way to generate more hype among investors with increasing growth.