CGI (GIB.A) and DSG: 2 TSX tech stocks to buy instead of Amazon (AMZN)?

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 CGI (GIB.A) and DSG: 2 TSX tech stocks to buy instead of Amazon (AMZN)?
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  • Stocks of Amazon Inc (NASDAQ: AMZN, AMZN: US) dropped by over 10 per cent at 9:46 AM EST on April 29.
  • The decline came after the tech giant reported a net loss of US$ 3.8 billion in Q1 FY2022.
  • CGI Inc (TSX: GIB.A) and Descartes Systems (TSX: DSG) can be two TSX alternatives to Amazon for Canadians.

Stocks of Amazon Inc (NASDAQ: AMZN, AMZN: US) dropped by over 10 per cent at 9:46 AM EST on Thursday, April 29, after the tech giant reported a net loss of US$ 3.8 billion in Q1 FY2022 on April 28.

The e-commerce giant is said to have missed a profit forecast of some US$ 4.4 billion, which seems to have disappointed investors and triggered a downward movement in its stock prices.

As AMZN stock tumbles, Canadians can explore TSX alternatives like CGI Inc (TSX: GIB.A) and Descartes Systems Group (TSX: DSG) if they are looking for tech stocks.

CGI Inc recently posted its quarterly results for Q2 FY2022, while Descartes Systems Group announced the acquisition of a California-headquartered company to strengthen its machine learning and artificial intelligence (AI) capabilities.

So, without any ado, let us talk about these two TSX stocks that you can explore instead of Amazon.


CGI Inc provides business consulting, system integration, managed IT, application, infrastructure, and business process services across different industries in North America and Europe.

The technology company saw its revenue at C$ 3.26 billion in the second quarter of fiscal 2022, a year-over-year (YoY) increase of C$ 190.4 million. CGI’s net profit also zoomed from C$ 341.2 million in Q2 FY2021 to 372 million in the latest quarter.

The software company reported diluted earnings per share (EPS) of C$ 1.53 in Q2 FY2022 compared to C$ 1.34 in the second quarter last year. The large-cap company also reduced its net debt from C$ 2.93 billion in Q2 2021 to C$ 2.72 million in the latest quarter.

Stocks of CGI Inc slipped by roughly six per cent in 12 months.

 CGI (TSX: GIB.A)’s Q2 FY2022 results

Also read: Whitecap (WCP) and Baytex (BTE): Why are these TSX oil stocks trending?

Descartes Systems Group Inc (TSX: DSG)

Descartes Systems Group recently acquired Foxtrot, which leverages its algorithms to provide mobile route execution solutions.

With this acquisition, the Canadian tech firm aims to improve its route planning and execution solutions by advancing AI and machine learning capabilities in the ‘real world data’.

The mid-cap tech firm expanded its revenue by 20 per cent YoY to US$ 112.4 million in Q4 FY2022.

The firm reported a net profit of US$ 19.2 million in the latest quarter, down from C$ 23.2 million a year ago. However, its annual net profit was up from US$ 52.1 million in 2020 to US$ 86.3 million in fiscal 2022.

DSG scrip sank by about 11 per cent in nine months.


In addition to Descartes Systems, CGI Inc also agreed to acquire a management consulting company, Harwell Management, through its 100 per cent owned subsidiary CGI France SAS to enhance its business consulting services across financial sectors.

Both companies seem to be increasing their capabilities and, if conditions favour, could significantly gain in the future. However, investors should conduct a detailed analysis of any stock and set their return and risk targets clear before they park the funds anywhere.

Also read: MAGT, FOBI and POET: 3 Canadian metaverse stocks to buy instead of FB?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 


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