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Highlights
- Pinterest stocks went through the roof on Wednesday, October 20.
- The surge came after speculations surfaced that fintech giant PayPal Holdings Inc (NASDAQ: PYPL, PYPL:US) is looking to buy the social media company.
- In the light of this development in the tech sector space, let’s take a look at some Canadian tech stocks that could be explored for your portfolio.
Pinterest stocks went through the roof on Wednesday, October 20, after speculations surfaced that fintech giant PayPal Holdings Inc (NASDAQ: PYPL, PYPL:US) is looking to buy the social media company.
The San Jose, California-based digital payment player is said to have approached Pinterest for a potential deal of about US$ 70 per share, which brings its valuation to US$ 45 billion, noted reports quoting sources.
The reports bolstered Pinterest shares to surge by nearly 13 per cent on Wednesday, while PayPal stocks dipped by almost five per cent.
In the light of this development in the tech sector space, let’s take a look at some Canadian tech stocks that could be explored for your portfolio.
1. Mogo Inc (TSX:MOGO)
Stocks of this Canadian financial technology company shot up by nearly five per cent on Wednesday, closing at a price of C$ 7.04 per piece.
In the second quarter of 2021, Mogo Inc saw its revenue surge by 29 per cent year-over-year (YoY) to C$ 13.7 million.
Mogo, which provides solutions to help customers monitor their financial health via its application, also saw its member base inflate by 63 per cent YoY to 1.7 million at the end of Q2 2021.
The small-cap company held a price-to-earnings (P/E) ratio of 305.5 and a return on equity (ROE) of 3.24 per cent on October 20. It was also one of the top technology stocks trending on the Toronto Stock Exchange (TSX).
Also read: 5 highly anticipated Canadian IPOs to watch out for
2. Constellation Software Inc (TSX: CSU)
Constellation Software, which offers software-related solutions for public and private sector enterprises, is currently among the top price performers and technology stocks on the TSX.
The C$ 44.8-billion market cap company is set to release its third quarter results for the current fiscal year on November 4. In Q2 2021, Constellation Software reported a notable revenue growth of 35 per cent YoY to US$ 1.249 billion and a net income growth of seven per cent YoY to US$ 88 million.
The Canadian tech player posted a P/E ratio of 108.2 and an ROE of 40.33 per cent on October 20. Its earnings per share (EPS) amounted to US$ 20.45.
Constellation Software pays its shareholders a quarterly dividend of US$ 1 per piece, which was recently doled out on October 8.
Also read: 5 TSX stocks to buy with over 8% dividend yield
3. Digihost Technology Inc (TSXV:DGHI)
The Canadian blockchain company, which focuses on Bitcoin mining, saw its stocks surge by nearly five per cent on October 20, closing at a day high value of C$ 2.32 per share.
Digihost Technology is currently one of the top trending stocks on the Toronto Stock Exchange Venture (TSXV) platform among listed tech companies, and is also said to be outperforming its peers in the market.
The Bitcoin self-mining company announced earlier this month that it has received 1,952 new M30 Bitcoin miners.
In the third quarter that ended in September 2021, Digihost Technology produced 133.02 bitcoins, which boosted its total holdings to 452.24 bitcoins. This, the company said, represented a fair market value of approximately US$ 19.9 million at September-end.
Bottom line
Prior to the PayPal offer, Pinterest is said to have been approached by Microsoft Corporation (NASDAQ: MSFT, MSFT:US) with an acquisition offer.
Earlier this year, it was reported that the tech giant had offered to purchase Pinterest for an amount of US$ 51 billion, but the talks had hit a wall as Pinterest reportedly wanted to remain an independent player.
If the speculations of a new offer from PayPal are confirmed and a merger between these major tech players does take place, the tech sector in the North American markets are likely to feel an impact.
