Descartes Systems
Descartes Systems (TSX:DSG) shares have fallen roughly 30% over the past year. Yet the company continues to deliver stable revenue growth and maintain an impressive 45% adjusted EBITDA margin. Its suite of solutions—from route optimization and compliance tools to global trade intelligence and e-commerce logistics—remains essential for businesses moving goods and information across borders, within countries, and to customers’ homes. That hasn’t changed in 2025.
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What has changed is the global trade environment. New U.S. tariffs are prompting several countries to diversify their export markets, temporarily slowing trade flows but ultimately creating more demand for efficient route planning, customs processing, and regulatory compliance.
Descartes is well-positioned to support this transition. Its scalable platforms and extensive Global Logistics Network (GLN) make it a key enabler for companies adapting to new trade patterns. Historically, the stock has bounced back strongly after tariff-related pullbacks: it dropped 20% in late 2018 during the U.S.–China trade war, then surged 40% in early 2019 as trade volumes recovered.
Management has also reduced costs to preserve its strong 45% adjusted EBITDA margin during the current slowdown. With zero debt and over $240 million in cash, Descartes has the balance sheet strength to weather near-term turbulence. Overall, the tariff-driven pullback appears temporary, and the long-term growth outlook remains solid—making this an attractive entry point.
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HIVE
HIVE Digital Solutions (TSXV:HIVE) has seen its share price plunge 62% since October, a decline largely driven by a 33% drop in Bitcoin. Given that 94% of HIVE’s revenue still comes from Bitcoin mining, the company’s performance remains tightly tied to Bitcoin’s price, which moves with liquidity conditions and investor sentiment. The latest downturn pushed Bitcoin to a seven-month low, prompting many miners—including HIVE—to accumulate more coins while holding onto newly mined ones.
HIVE sells Bitcoin primarily to fund expansion, and it has grown its mining capacity from 6 EH/s to 25 EH/s without taking on debt—using its Bitcoin holdings instead. It continues to push down mining costs to stay profitable even during market downturns.
However, Bitcoin mining has become less lucrative following the recent halving. That’s why HIVE is expanding into high-performance computing (HPC) through its BUZZ unit. Before 2023, the investment case for HIVE was simple: trade the stock based on Bitcoin volatility—buy around $4 and sell around $7. Now, with HIVE’s AI-focused pivot, the appeal increasingly lies in the accelerating demand for GPU-powered cloud computing.
HIVE aims to rent out its Nvidia GPU-equipped data centres to support AI workloads—a high-margin business—and has already secured clients like Bell Canada. The company’s HPC opportunity is largely insulated from short-term Bitcoin price swings, making HIVE an appealing long-term buy near the $4 level.
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