Many Canadian investors are well aware of the largest (and hottest) tech names trading on the TSX right now - think Shopify Inc. (TSX:SHOP)(NYSE:SHOP) – however a few up-and-coming names on the U.S. exchanges in the same space offer investors exposure to the industry at a different stage of the company’s life-cycle.
Many analysts and investors agree that Shopify’s astronomical stock price appreciation has resulted in this company being priced at valuation multiples reserved for only a select handful of companies. Following the logic that other players can come in and take market share away, experiencing similar growth rates to those of Shopify, it makes sense to start digging deep for smaller companies ready to make an impact in providing e-commerce and domain services to small to medium sized clients.
One such company is Tucows Inc. (NASDAQ:TCX), a company that provides internet domain and content services to small and medium-sized business owners. Those looking to purchase a domain name (essentially the leased rights to a domain name) or registration services relating to the purchase and design of a website will go through a company such as Tucows. This business has seen impressive year-over-year growth, with revenues increasing by 55% year-over-year as of the first quarter of 2017.
While Tucows still does not boast the impressive growth rates of companies like Shopify, the business’ share price appreciation of late tells a very similar story, one that many investors believe has only just begun.
Invest wisely, my friends.
