As the global economy continues to grapple with the impact of the coronavirus and growing uncertainty regarding an economic downturn Canadian tech stocks have continued to do well. Tech stocks are not showing signs of weakness despite the current uncertainties and jitters of a possible recession.
Currently, tech stocks are experiencing massive momentum and this might be attributed to their lower costs compared to other industries. As a result, they offer an alternative for investors seeking returns in the future. Here are some stocks that have performed well during the coronavirus pandemic and yielding more promise going forward.
Shopify grew its YoY revenue in Q1 by 47%
One of the Canadian tech stocks that are currently hot is Shopify Inc. (NYSE:SHOP) and has benefitted greatly during the coronavirus pandemic. The Lockdowns resulted in people shifting to online shopping and Shopify which helps small businesses to set up online stores saw a surge over the period. The stock has continued to perfume exceptionally this year and in May it climbed 19.9%.
In the last quarter, the company grew its revenue by almost 47% from the same period last year. Equally the number of new accounts set up between March 13 and April 24 jumped by 62% compared to the previous six weeks. Its YoY subscription solutions sales increased 34% to $187.6 million while merchant solutions sales also grew 57% to $282.4 million.
Real Matter CEO to sell 750,000 shares of his stake
Another Canadian tech stock flying high is Real Matters Inc. (OTCMKTS:RLLMF) which has almost doubled this year. The company offers mortgage and title closing services to the mortgage lending and insurance services industry in North America. In its recent quarterly report the com[any indicated that its YoY revenue had increased 80% to $36 million.
The company’s CEO Jason Smith announced recently an Automatic Securities Disposition Plan as per the Canadian securities regulations. The ASDP will enable the orderly disposition of a percentage of the CEO’s securities in the company. Smiths is expected to sell 750,000 shares under the plan and will complete his pledge to Sunnybrook Hospital Foundation and Holland Bloorview Kids Rehabilitation Hospital Foundation through a donation of CA$2 million in the form of shares.
Constellation Software among the most resilient Canadian Tech stocks
Constellation Software Inc. (OTCMKTS:CNSWF) is among Canadian tech stocks that have shown resilience during the coronavirus pandemic. The company has an average annual revenue of approximately $3.5 billion and a market cap of more than $30 billion. The software business acquisition company is one of the most diversified tech companies with its six operating groups serving close to 125,000 clients globally.
The exceptional performance of Constellation is down to its acquisitions that it depends on to grow its revenue. Although the acquisitions can result in consumer attrition in the near term the company has been able to retain most of its clients in the past 10 years. The high retention of clients is down to the significance of its solutions.