Shopify (TSX:SHOP) & Nuvei (TSX:NVEI): 2 tech stocks to buy on the dip?

Highlights

  • Tech stocks took a plunge on Tuesday, September 28, and continued to fall on Wednesday as rising bond yields in the US triggered a selloff.
  • Canadian tech firms like Shopify Inc (TSX:SHOP) and Nuvei Corp (TSX:NVEI) fell notably.
  • Although Thursday morning saw the tech sector take a turn for the better, the dip over the past two days has given way to a rising investor interest in tech stocks.

Technology stocks in the North American markets took a plunge on Tuesday, September 28, and continued to fall on Wednesday as rising bond yields in the US triggered a selloff.

While tech giants like Apple Inc (NASDAQ:APPL, APPL:US), Facebook Inc (NASDAQ:FB, FB:US), etc. saw their stocks plunge amid the selloff, Canadian tech firms like Shopify Inc (TSX:SHOP) and Nuvei Corp (TSX:NVEI) also fell notably.

Although Thursday morning saw the tech sector take a turn for the better, the dip over the past two days has given way to a rising investor interest in tech stocks.

On that note, let’s explore TSX-listed tech stocks Shopify and Nuvei further to see if their dipped prices are worth taking a note of.

Also read: Top 6 events to watch out in Canadian markets on September 29

Shopify Inc (TSX:SHOP)

The cloud-based e-commerce platform provider’s stock ended trading at C$ 1,717.91 per share on Wednesday, down by approximately 17 per cent from its 52-week high of C$ 2075.88 (July 26, 2021).

The e-commerce scrip, however, still noted a surge of about 26 per cent for the past one year and that of 19 per cent for the last six months.

On Thursday morning, as tech shares slowly rebounded, SHOP stock spiked marginally by 0.4 per cent at the time of writing this.

Also read: Shopify (TSX:SHOP) grew 846% in 3 years. A smart tech stock to buy?

In its Q2 2021, Shopify recorded a 57 per cent year-over-year (YoY) jump in its topline of C$ 1.119.4 billion.

Its subscription solutions revenue soared by 70 per cent YoY to C$ 334.2 million in Q2 2021, while its merchant solutions revenue rose by 52 per cent YoY to C$ 785.2 million.

Shopify’s net income of C$ 879.1 million in Q2 2021 was notably up from that of C$ 36 million in the same quarter a year ago.

Shopify (TSX:SHOP) Q2 2020 results

Nuvei Corporation (TSX:NVEI)

Nuvei Corporation is known to provide digital payment services across Canada, the US, European Union, the UK, etc.

The Montreal-headquartered firm saw its stocks close at a value of C$ 145.04 per share on Wednesday, which was about 18 per cent below its 52-week high of C$ 180 (September 17, 2021).

Nuvei stocks were still up by about 90 per cent on a year-to-date (YTD) basis, and posted a one-year growth of more than 165 per cent.

On Thursday, however, NVEI stocks were down by more than two per cent at the time of writing this.

Also read: Nuvei (TSX:NVEI) is growing. A Canadian tech stock to buy?

On the financial front, the Canadian fintech firm saw its revenue skyrocket by 114 per cent YoY to C$ 178.2 million in the second quarter of 2021, up from that of C$ 8.9 billion in Q2 2020.

Nuvei’s net income, on the other hand, reached C$ 38.9 million in the latest quarter, as compared to that of C$ 14 million in the same quarter a year ago.

The firm held cash of C$ 533.7 million at the end of June this year, as against C$ 180.7 million at December-end last year.

Nuvei (TSX:NVEI) Q2 2020 results

Also read: Top 5 events to watch out in Canadian markets on September 28

Bottom line

The US 10-year yield hit its highest level in over two months on Tuesday, at 1.567 per cent, causing the TSX technology sector to sink by about 3.77 per cent.

On Wednesday, too, the S&P/TSX Capped Information Technology Index shrank by 1.79 per cent.

Thursday morning saw some improvement in the tech sector, but the recent selloff has brought down the price of some stocks that could be carefully explored further by interested investors.

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