It may be an understatement to say that tech stocks have suffered over the past few months. Many of the most popular tech stocks find themselves trading more than 30% lower year to date. With that said, many investors have become hesitant to invest in these stocks. However, it’s important to remember that it’s during times like these that investors should buy shares hand over fist. Buying when prices are depressed is one way investors can see massive gains when the market becomes positive again.

Here are two top tech stocks to buy for the long haul.

My top tech stock

Shopify (TSX:SHOP)(NYSE:SHOP) is offering investors a very solid discount at the moment. Well, the company didn’t choose to trade more than 50% lower than where it was at the start of the year, but that’s the situation we have today. So, why did Shopify stock fall so heavily? There are two main reasons for this. First, investors assumed that it would have a hard time growing once interest rates were increased. This shouldn’t be the case since Shopify is profitable. Therefore, it shouldn’t need to borrow money to fund its growth.

The second reason Shopify stock has fallen so heavily is because the company stated that it expects growth rates to return to pre-COVID levels. While this can sound negative for the company, investors shouldn’t expect Shopify to be able to sustain an 86% year-over-year growth rate in revenue every year. The fact of the matter is that a 40% growth rate is much more sustainable. One positive thing to keep in mind is that consumers are much more accustomed to online shopping today than they were two years ago. That bodes well for Shopify’s future.

I’ve said it before and I’ll say it again: Shopify is my top tech stock to buy in 2022.

The next Constellation Software

Constellation Software has been a major stock market winner since its IPO. If you had invested $10,000 at its IPO, your position would be worth more than $1,000,000 today. Because of the high growth that Constellation has managed to achieve over the past decade and a half, many investors feel like they’ve missed out. Don’t worry, you have the opportunity to effectively roll back the clock on this company. All you have to do is invest in Topicus.com (TSXV:TOI).

Like Constellation Software, Topicus is an acquirer of vertical market software businesses. In fact, Topicus was a subsidiary of Constellation Software until it was spun out into its own entity. Although Topicus operates on its own these days, Constellation Software still plays a vital role in Topicus’s potential success. Six members of Topicus’s board of directors are executives from Constellation Software. If Topicus can lean on this vast wealth of expertise, it has everything it needs to become the next Constellation Software.

The post 2 Top Tech Stocks to Buy for the Long Haul appeared first on The Motley Fool Canada.

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• 3 TSX Growth Stocks That Could Double in March
• 3 Cheap, High-Growth Stocks to Buy in March

Fool contributor Jed Lloren owns Shopify and Topicus.Com Inc. The Motley Fool owns and recommends Shopify and Topicus.Com Inc. The Motley Fool recommends Constellation Software.

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By: Jed Lloren
Title: 2 Top Tech Stocks to Buy for the Long Haul
Sourced From: www.fool.ca/2022/03/03/2-top-tech-stocks-to-buy-for-the-long-haul/
Published Date: Thu, 03 Mar 2022 19:00:00 +0000

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