Shopify Inc. (SHOP.TO)

Quite volatile. On her watchlist. One of the strongest platforms in the e-commerce space. Total value of goods sold expected to grow 32%. AI already helping merchants attract customers.

Be patient for a favourable entry point to get in.

At its core, it's the software between drop-shippers in China and influencers/users. So it's in the layer that's more at risk over time. If it were cheaper, he'd be more interested.

MSFT is the better pick today.

People think large-language models will eat its lunch, make the e-commerce platform questionable. Many analysts have brought down 12-month price targets. Volatility gives you a chance to earn income by selling puts and calls. 

He loves their business, which has few competitors, but the problem is always their high valuation, even after the current pullback. They have low free cash flow. Too risky. You're playing momentum either way.

Winning the global commerce infrastructure war. Valuation is always the hurdle for investors. Has a real moat and real fundamentals. CEO has an AI-first approach, which helps to expand margins. No dividend.

(Analysts’ price target is $157.00)

Really well managed. Can they anchor themselves in an agentic-commerce world? Making every attempt to do so. But will they succeed? Too soon to know. Market-darling, cult-like stocks facing existential questions usually have valuations compress more. Probably more downside risk.

Tech is struggling and SHOP trades at a high PE. Would be interesting in the $80s. He sees more downside from here.

Dropped below 200-day MA -- have to watch that. Always pricier than many names, and so he's never owned. Trailing PE is 133x, forward PE is 69x. Caters to small and medium businesses, which are more quickly affected by changes in the economy.

High beta (almost 2x that of the TSX) and volatile profile make it a trading stock.

One of the highest-growth, highest-quality businesses in Canada. Pretty attractive entry point. Expensive. Volatile, so expect 20% drawdown short-term. New products, cross-selling, up-selling. Leading edge of integrating AI.

A name to look at in the beaten-up software space.

He has traded it before. It makes big swings, including now. It's going down and could take out its low of around $135.

Trouble is that it's always pricey, but finally at a level that's not so expensive. Models 46% EPS growth, trading ~46x PE for 2028. Beat last week and raised the outlook. 

Commerce tailwinds, but so many fears on AI. Market's treating all these businesses as though they're all going away. He thinks AI helps enable its business. Buying back stock, and that's what the smart folks do.

Strong performer last year. Not cheap despite pressure on shares. Probably primary bet for AI exposure in Canadian tech. Good quality. Expects further volatility. Likes, but needs further downside to get excited.

Once you get in, a long-term hold.

For money managers looking for GARP (growth at a reasonable price), this name has always had valuation issues. Despite EPS expectations of 30+%, you're paying a lot for it. Current PE is 75x, forward PE is 57-58x. Price-to-sales is almost 10x going forward. Beta is 2x the TSX. In the US, many names are cheaper by PEG ratio.

Caters to small- and medium-sized businesses, so you have to keep an eye out for that. Those businesses tend to be more volatile at the end of the business cycle and, indeed, may not survive.

Usually a decent trading name, but now price is below 200-day MA (which is still trending higher, which is good). Watch out if it breaks to the downside of that. Though doesn't suffer from the AI scare, part of the broader rotation away from tech.

Trades at a FCF yield of 1%, very rich multiple. Growth was very good, but takes a lot to live up to the valuation. Likes the business, but not the valuation (even today). Stay away.