Article Description - Technology stocks underwent a massive selfoff earlier this month, on October
4, as fear of rising inflation gripped the market. By the next trading session, however,
tech stocks rebounded quickly, with the TSX tech sector gaining 0.25 per cent on October
5. On Wednesday, October 13, the S&P/TSX Capped Information Technology Index was up by 17.23
per cent year-to-date. Watch this video for more info on this space by Kalkine TV
Intro-
On Wednesday, October 13, the S&P/TSX Capped Information Technology Index noted a growth
of nearly 17.23 per cent on a year-to-date (YTD) basis.
Taking note of the gaining spree, let’s look at the recent performance of some Canadian
tech shares.
Shopify Inc (TSX:SHOP)
This Canadian tech juggernaut’s share prices have skyrocketed by about 2,900 per in the
past five years, mirroring its growth in the ecommerce universe where it provides subscription
and merchant solutions to small and midsize businesses.
SHOP stock has also surged by about 18 per cent so far this year and gained roughly 20
per cent YTD.
Having witnessed a stock price growth in multifold over the past few years, Shopify may seem
like an expensive option to some investors.
Nuvei Corp (TSX:NVEI)
Stocks of the fintech player, which offers digital payment services across Canada, the
US, European Union, the UK, etc, have grown by a significant 200 per cent this year.
NVEI scrips also posted a return of 85 per cent in the last six months, as on October
13.
Nuvei Corporation drew investor attention this month after it announced its plans to
go public in the US.
The Montreal-headquartered firm has been trading on the Toronto Stock Exchange (TSX) for more
than a year now, after having raised C$ 700 million in its Canadian initial public offering
(IPO) last year.
Now, the company is aiming for a US IPO where it will put 1.5 million of its shares up for
sale to find a spot on the Nasdaq Stock Market. Here, it is expected to trade under the same
name of ‘NVEI’.
Fobi AI Inc (TSXV:FOBI)
Fobi AI, which deals in providing real-time data analytics using artificial intelligence (AI),
has been attracting increased investor attention recently following a few corporate developments.
On Thursday, October 7, the AI firm announced its plans to acquire online passes and card
organizer PassWallet. As per the deal, Fobi is set to pay a total of €888,000 (C$ 1,278,772.20),
which will be part in cash and part in Fobi shares.
Concluding now as you see
The COVID-19 pandemic had seen the tech sector witness quite a bit of surge in sales last
year as more people relied on technology to get through day-to-day life while locked indoors.
Now, as the world is slowly getting back up on its feet amid increased vaccine drives,
this increased reliance on tech services could decrease as people return to the streets and
brick-and-mortar stores.
And while the open roads have their charm, so does the option of ordering groceries from
the comforts of your couch.
Hence, as the demand for such online services grows, tech stocks are likely to expand over
the years as well.