Canada’s health care and technology sector led the losses that piled up on the S&P/TSX Composite Index in mid-morning trading on February 23. Shopify (TSX:SHOP)(NYSE:SHOP) is nearly a year removed from its plunge below the $500 mark during the March market pullback. Shares of this Ottawa-based tech stock have climbed over 150% year over year at the time of this writing. However, the stock was down 6.2% in trading today.
Today, I want to look at another tech stock that may hold similar potential to Shopify. I want to discuss its prospects going forward. Moreover, I’ll look at the similarities between the two companies. Let’s dive in.
What do these companies have in common?
In September, I’d discussed how Canadians could invest in the promising e-commerce space. Lightspeed POS (TSX:LSPD)(NYSE:LSPD) provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses. Shopify provides a commerce platform and services to its merchant client base. The COVID-19 pandemic has lured even more customers to digital shopping channels.
Shopify achieved record sales of $5.1 billion during the Black Friday Cyber Monday shopping weekend, surpassed the previous year’s record highs by the middle of the weekend. Full year 2020 revenue grew 86% in 2020 on Gross Merchandise Volume (GMV) of 96%…