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Highlights
- Quite a few technology stocks fell in the wake of the Microsoft-Activision tie up on Wednesday, which has been dubbed as the biggest deal in the global gaming industry.
- In addition, increasing treasury yields also continue to build pressure on tech stocks.
- The S&P/TSX Capped Information Technology Index plummeted by over two per cent on Wednesday,
Quite a few technology stocks fell in the wake of the Microsoft-Activision tie up on Wednesday, which has been dubbed as the biggest deal in the global gaming industry.
In addition, increasing treasury yields also continue to build pressure on tech stocks.
The S&P/TSX Capped Information Technology Index plummeted by over two per cent on Wednesday,
Let us have a look at Canadian tech stocks Nuvei and Wecommerce amid the ongoing selloff.
1. Nuvei Corporation (TSX: NVEI)
Nuvei Corporation saw its total volume grow by 88 per cent year-over-year (YoY) to hit a total of US$ 21.6 billion in the third quarter of fiscal 2021. Meanwhile, its ecommerce sales contributed 83 per cent YoY to its total volume in the latest quarter.
The payment technology company generated a revenue of US$ 183.9 million in the latest quarter, which was up 96 per cent from Q3 FY2021.
Nuvei also saw its net income surge to US$ 28 million in Q3 FY2021, as compared to a loss of US$ 77.9 million a year ago.
Nuvei shares closed at a value of C$ 77.76 apiece on Wednesday. This payment technology stock climbed approximately 16 per cent in the last one month.
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Also read: WestJet & Air Canada (AC): Are the airline stocks a buy amid omicron?
2. Wecommerce Holding Ltd (TSXV: WE)
Wecommerce Holdings Ltd, a Shopify partner since 2010, generated a revenue of C$ 10.9 million in Q3 FY2021, representing a YoY surge of 88 per cent.
The e-commerce company posted adjusted EBITDA of C$ 3.3 million in the latest quarter, up from C$ 1.9 million a year ago.
Wecommerce, on November 22 last year, said that it would continue to focus on long-term growth strategy across its portfolio companies amid supply chain challenges, rising input costs and shift in ads infrastructure.
Wecommerce stock closed at a value of C$ 13.34 apiece on Wednesday. The ecommerce tech stock has grown by roughly 34 per cent in the past three months.
Bottomline
Canadian investors seeking to invest in the technology sector can take on this opportunity to explore discounted tech stocks like Nuvei and Wecommerce. However, they should be aware of any market change, trends, and a company’s health to lock in profit and eliminate losses.
Also read: Activision-Microsoft deal draws focus to game stocks: 2 hot TSX options
