3 TSX Stocks That Have Soared Since Trump’s Win

• BlackBerry (TSX:BB), Shopify (TSX:SHOP), and Hut 8 (TSX:HUT) have all seen significant gains since Donald Trump’s election win on November 5, 2024.
• BlackBerry has skyrocketed 138% due to strong earnings, but its valuation now looks stretched.
• Shopify has climbed 52% on accelerating growth, though investors should be wary of past corrections.
• Hut 8 is up 29%, riding Bitcoin’s surge past $100,000, but its high volatility makes it a risky play.

BlackBerry: A Massive Rally, but Is It Sustainable?

Once known for its iconic smartphones, BlackBerry (TSX:BB)(NYSE:BB) has transformed into a software company specializing in cybersecurity, enterprise software, and Internet of Things (IoT) solutions. The company’s QNX operating system is widely used in automotive technology, while its cybersecurity division provides security solutions for businesses and governments.

Since November 5, BlackBerry’s stock has soared 138%, hitting new 52-week highs. The primary driver was its December earnings report, which exceeded expectations and renewed investor confidence. Unlike some stocks benefiting from Trump’s victory, BlackBerry’s rally appears tied more to its financial performance than political developments.

While BlackBerry is relatively insulated from trade and tariff risks due to its tech-focused business model, concerns remain about its long-term financial health. It has still posted an operating loss in three of its past four quarters. The stock’s recent surge has made its valuation questionable, and investors should be cautious about a potential pullback. At current levels, it appears overbought and may not be a great buy despite the strong rally.

Shopify: Strong Growth, but Is It Too Expensive?

Shopify provides e-commerce solutions that allow businesses to create and manage online stores. The company has expanded globally, offering tools for payments, marketing, and inventory management, making it a leader in the e-commerce space.

The stock is up 52% since November 5, largely due to strong earnings in November. The company reported a 26% revenue growth rate, showing continued momentum in its e-commerce platform. Its international presence helps mitigate risks from potential U.S. tariffs, as it serves businesses across multiple regions.

Shopify remains a long-term growth play, but investors should be wary of its history. The stock previously reached similar highs in 2021 before experiencing a significant correction. While its business fundamentals remain strong, macroeconomic risks—such as weaker consumer spending or trade policy changes—could impact growth. Given its high valuation, Investors may want to wait for a dip in price before adding the stock to their portfolios.

Hut 8: A Bitcoin-Driven Stock with High Volatility

Hut 8 is one of Canada’s largest bitcoin mining companies. It generates revenue by using high-powered computing infrastructure to mine bitcoin, benefiting from rising cryptocurrency prices.

Hut 8 has gained 29% since Trump’s election win, significantly benefiting from Bitcoin’s surge past $100,000. Trump’s pro-crypto stance has fueled optimism, with investors hoping for a more favorable regulatory environment for digital assets.

While Hut 8 has upside potential if Bitcoin continues its bull run, the crypto market remains highly volatile. Regulatory risks, energy costs, and Bitcoin price fluctuations all pose significant risks to Hut 8’s stock. It may appeal to investors who are bullish on Bitcoin, but it remains a high-risk investment.