eCommerse

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Hi,

Except for SHOP, which is extremely expensive now, any other recommended ecommerse stocks/ETF available on the Canadian market?

Thanks

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Asked on October 14, 2020 8:21 pm
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HI JJ,

There are many, many stocks that are dabbling into eCommerce now. I would argue that SHOP remains the industry pureplay (at least on the TSX Index). SHOP actually provided an excellent entry point a few weeks ago when it dipped below our suggested buy target. It is quite possible it gets there again as the company is known to have big dips of 20% or more at least a few times a year. Thus far, this has always proven to be a buying opportunity.

Lightspeed (LSPD) and Nuvei Technologies (NVEI) as ePayment solution providers can also fit the eCommerce mold as they have a payment ecosystem which includes epayments. Further to this, a company like Good Food Market (FOOD) can also be considered an eCommerce stock as it sells its products online. Points International (PTSX) is one that is often dubbed an eCommerce stock, but it doesn't interest me. One can also argue that some of the big retailers like Canadian Tire (CTC.A) are becoming more and more like eCommerce stocks with a good portion of sales occuring on line.

All this being said, the best in the business and the best pureplay on the TSX is still Shopify.

One way to get exposure to tech broadly is to just pick up a tech etf like iShares S&P/TSX Capped Information Tech Index ETF (XIT:CT) which tracks the TSX Technology Index. It is probably the easiest way to get tech exposure.

Mat

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Posted by Mathieu Litalien
Answered on October 15, 2020 4:34 am