In the wake of a sweeping correction that has erased years of pandemic-era gains, the Canadian technology sector finds itself at a crossroads familiar to every generation of long-term investors: the moment when fear and opportunity occupy the same space. Two companies — Nuvei, the Montreal-based payments disruptor, and Kinaxis, the seasoned supply-chain software firm — have seen their share prices fall 30 to 50 percent despite retaining the business fundamentals that made them compelling in the first place. History suggests that the distance between a broken stock and a broken business is wher
Two Discounted Tech Stocks Worth Buying for Patient Growth Investors
A 50% stock decline doesn't mean the business deteriorated by half
Mark
Why should I care about a stock being down 50% if the business is still sound? Isn't that a sign something's actually wrong?
Mimi
Not necessarily. A stock price reflects what the market thinks a company is worth right now. When the entire sector gets repriced downward—which is what happened after the pandemic boom—good companies get caught in the selloff alongside mediocre ones. The business fundamentals don't change overnight just because the stock dropped.
Mark
But how do I know which companies are actually good and which ones deserve to be down 50%?
Mimi
That's the hard part, and it's why this strategy only works for patient investors. You have to do the work to understand the business—what market it serves, whether it's growing, whether it's profitable or on a path to profitability. Nuvei and Kinaxis both have strong fundamentals and operate in large, growing markets.
Mark
What's the difference between these two? Why would I pick one over the other?
Mimi
Nuvei is younger, more volatile, and operating in a massive market with huge upside if it executes. Kinaxis is proven—it's already been beating the market for years. If you can stomach the swings, Nuvei might give you bigger returns. If you want growth but with less drama, Kinaxis is the safer bet.
Mark
You keep saying "patient investors." How patient are we talking?
Mimi
Ten years or longer. If you need the money in five years, this probably isn't for you. But if you can genuinely ignore what the stock does for a decade, you're buying at prices you may never see again.
Mark
Is there a risk these stocks just keep falling?
Mimi
Of course. Nobody can predict the market. But the argument here is that if the businesses are sound—and both of these are—then eventually the market will recognize that and reprice them higher. The risk is that you're wrong about the business, or that you need the money before that repricing happens.
The Pulse
- Canadian tech stocks have shed 30–50% of their value in months, creating a sector-wide crisis of confidence that has rattled even investors who believe in the underlying companies.
- The tension lies in separating genuine business deterioration from market overreaction — a distinction that separates panic sellers from long-term wealth builders.
- Nuvei, once a TSX sensation returning nearly 300% in its debut year, has surrendered half those gains and now tempts aggressive investors willing to stomach its volatility for multi-bagger potential.
- Kinaxis offers a steadier path — a decade of public trading, five years of consistent market-beating returns, and a 30% discount from recent highs that makes it accessible without the white-knuckle ride.
- The window may be narrow: analysts argue that quality tech stocks rarely trade this far below all-time highs, and investors with a 10-year horizon are being urged to act before valuations normalize.
In the wake of a sweeping correction that has erased years of pandemic-era gains, the Canadian technology sector finds itself at a crossroads familiar to every generation of long-term investors: the moment when fear and opportunity occupy the same space. Two companies — Nuvei, the Montreal-based payments disruptor, and Kinaxis, the seasoned supply-chain software firm — have seen their share prices fall 30 to 50 percent despite retaining the business fundamentals that made them compelling in the first place. History suggests that the distance between a broken stock and a broken business is where patient capital finds its most enduring rewards.
The Canadian technology sector has been through a brutal repricing. After a pandemic-fuelled surge that lasted nearly two years, momentum stalled in late 2021 and stocks began falling hard — many losing half their value in a matter of weeks. The broader Canadian market, meanwhile, has posted modest gains, making the tech decline feel all the more stark. Yet for investors willing to look past the pain in the price, the argument is straightforward: a falling stock is not the same as a failing business.
Nuvei is the higher-octane option. The Montreal payment processor debuted on the TSX in 2020 and delivered extraordinary early returns before giving back roughly half its gains from peak. The volatility is real, but so is the opportunity — digital payments remain a vast and still-expanding market, and Nuvei is still in the early innings of capturing its share. Investors comfortable with sharp swings in exchange for the possibility of outsized long-term returns will find it worth serious consideration.
Kinaxis represents the more measured choice. Nearly a decade on public markets and quietly outperforming the Canadian benchmark by more than double over five years, it has earned a reputation for consistency. Even with shares down more than 30% from their recent highs, the company's track record and relative stability make it a more accessible entry point for growth investors who want to outperform without enduring a roller coaster.
The broader lesson is one investors have encountered before: market repricing creates opportunity precisely because it feels uncomfortable. For those with a decade or more of patience and the discipline to ignore short-term noise, this pullback may look, in hindsight, like one of the more generous invitations the market has extended in years.
The tech sector is in freefall, and that's exactly when patient investors should start paying attention. Over the past six months, while the broader Canadian market has managed modest gains, technology stocks have been hammered—many losing half their value or more in a matter of weeks. It's a brutal thing to watch if you own these companies, but the pain in the stock price doesn't necessarily mean the businesses themselves are broken.
What we're witnessing is a natural correction after an extraordinary run. The pandemic crash of early 2020 triggered a tech boom that lasted nearly two years before momentum finally stalled in late 2021. When a sector rises that fast, a pullback is inevitable. The question for long-term investors isn't whether the decline will continue—nobody can predict that—but whether the underlying companies are still worth owning. For those willing to hold for a decade or more, the current prices represent a rare window to buy quality businesses at genuine discounts.
Nuvei is the more aggressive play. The Montreal-based payment processor went public on the TSX in 2020 and immediately caught fire, returning nearly 300% in its first year. By September 2021, it had hit all-time highs. Since then, the stock has surrendered roughly half those gains. The volatility is real and should be expected with a high-growth tech company, but the underlying opportunity remains enormous. Nuvei operates in a massive market—digital payments—and the company is still in the early stages of capturing share. For investors hunting multi-bagger returns and comfortable with the swings that come with them, Nuvei belongs on the shortlist.
Kinaxis offers a different flavor of growth. The company has been trading publicly for nearly a decade and has quietly outpaced the Canadian market by more than double over the past five years. Even with shares down more than 30% from their 52-week highs, the stock has delivered consistent market-beating performance. Kinaxis is more established, less volatile, and more reasonably priced than Nuvei—a better fit for growth investors who want to beat the market without riding a roller coaster.
The real insight here is that both companies are still fundamentally sound. A 50% stock price decline doesn't mean the business has deteriorated by half. It means the market has repriced its expectations, and for long-term investors, that repricing creates opportunity. These discounts may not last. It could be years before quality tech stocks trade this far below their all-time highs again. For investors with a 10-year horizon and the patience to ignore short-term noise, now is the moment to load up.
Notable Quotes
It may be years again before we see some of these top tech stocks trading this far below all-time highs— Investment analysis
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