A stock can fall 31% while revenue surges 34%. That sounds backward, yet markets regularly punish strong companies when expectations climb faster than even excellent results.
Those disconnects can create exceptional entry points, although a falling share price alone isn’t an investment thesis. Dip buyers still need expanding earnings, a durable competitive advantage, and a reason today’s disappointment could look temporary several years from now.
When a dip becomes an opportunity
Great companies can decline when valuations reset, economic uncertainty rises, or investors simply move toward the next popular trade. A broader stock market correction can make the selloff even messier, pulling down businesses whose long-term prospects remain intact.
The winning move isn’t buying every red chart with enthusiasm and crossed fingers. Investors should look for companies producing stronger results beneath the falling price, which leads to Shopify (TSX:SHOP) and Nutrien (TSX:NTR).
Shopify
Shopify stock recently traded near $174, roughly 31% below its 52-week high. The decline reflects concerns around technology valuations, consumer spending, global trade, and whether artificial intelligence (AI) could disrupt established software platforms.
Shopify’s operating results tell a far more encouraging story. First-quarter revenue climbed 34%, while its free cash flow margin reached 15%. Merchants also processed more than US$100 billion through the platform, showing that Shopify stock continues gaining scale across online, in-store, and international commerce.
AI could strengthen that ecosystem rather than replace it. Shopify stock already holds years of merchant, product, payment, and shopping data, giving it a valuable foundation for tools that help businesses create stores, market products, and complete sales through AI conversations.
The company expects second-quarter revenue to grow at a high-twenties percentage rate, while management expanded its share-repurchase authorization by US$3 billion in June. The shares still command a premium, but today’s price asks considerably less of investors than the 52-week high did.
Nutrien
Shopify stock supplies faster growth, while Nutrien adds a tangible business tied to one permanent global need. Farmers must replace nutrients removed from soil after each harvest, ensuring potash, nitrogen, and crop products remain essential as food demand rises.
Nutrien recently traded near $95, about 19% below its 52-week high. Meanwhile, first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 30% to US$1.1 billion, supported by record potash sales volumes and stronger nitrogen and retail results.
Global fertilizer supplies also remain tight as trade disruptions and higher energy costs affect competing producers. Nutrien can respond through six low-cost Canadian potash mines, an enormous agricultural retail network, and North American nitrogen plants that operated at a 92% ammonia rate during the quarter.
At roughly 14 times trailing earnings, Nutrien offers a less demanding valuation than Shopify stock and pays a $3.12 dividend per share yielding 3.2%. That combination gives investors income while waiting for fertilizer demand and pricing to support the next stage of growth.
Foolish takeaway
There are risks to consider. Shopify stock could fall further if consumer spending slows or its valuation compresses again. Nutrien faces volatile fertilizer prices, weather conditions, energy costs, and geopolitical disruptions, so neither dip guarantees a quick rebound.
Those risks make gradual purchases more sensible than investing everything in one afternoon. Investors reviewing how to buy stocks in Canada can divide a planned position into several purchases, leaving room to benefit if either selloff deepens.
All in all, Shopify stock combines accelerating commerce growth with a growing AI opportunity, while Nutrien offers essential agricultural exposure at a far lower valuation. Their recoveries may arrive on different schedules, but patient dip buyers could benefit as strong operating results eventually pull both share prices higher.
