Business & Investment

Lightspeed Stocks: Is it a rare buy or is the knife down?

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Light speed commerce (TSX: LSPD)(NYSE: LSPD) Shares rose 3.6% in midnight trading on November 25th. Montreal-based e-commerce companies looked strong in 2021. In fact, e-commerce space is accelerating growth in the process of the COVID-19 pandemic. Unfortunately, Lightspeed’s momentum stopped sharply later this year. Today I would like to discuss whether investors should buy a dip or avoid it. Tech stocks from now on.

Why light speed inventories were curtailed in late 2021

Lightspeed’s share fell by 15% in 2021. At the time of this writing, stock prices have plummeted 39% month-on-month. In late September Discussed High-tech stocks that surged more than 200% year-on-year. A few days later, the company was the target of a ferocious short report from Spruce Point Management.

A short report claimed that the company “largely” expanded its customers, the cash they generate, and their growth potential. In the report, Spruce Point argued that the company “gives great potential in payment solutions, but believes it is not transparent about competitive pressures and significant margin declines.” ..

Many investors remember the short attack that Andrew Left of Citron Research attacked. Shopify, Another Canada’s top e-commerce company. Fortunately, Shopify was able to make excellent quarterly and quarterly revenues and take advantage of short reports. Lightspeed needs to put together the same kind of stretch to crush the concerns raised by this attack.

That’s why this tech stock is an opportunity to buy low

Lightspeed has announced its earnings for the first time since a short report on November 4th. In the second quarter of 2022, the company achieved 193% revenue growth to $ 133 million. Meanwhile, subscription revenue increased 132% to $ 59.4 million. In addition, transaction-based revenue increased 320% to $ 65 million.

The company achieved these results against the backdrop of strong organic growth and the surge due to the recent acquisitions of NuORDER, Vend, Upserve and ShopKeep. Total trading volume was $ 18.8 billion, up 123% from the previous year.

In late October suggestion That Lightspeed looked like a great by-the-dip opportunity. The RSI of this tech stock is 28. This puts Lightspeed in a technically oversold territory.

Proceedings against Lightspeed now

The company’s second-quarter 2022 report saw revenue growth, but there were some warning signs. The company warned that it is facing macro-environmental uncertainties due to the negative effects of the COVID-19 pandemic. The ongoing supply chain crisis in North America could curb the growth of large and small retailers during the critical holiday season. Lightspeed management warned that this could be a performance issue in the short term.

This ongoing crisis is a very bad time for Montreal-based tech companies as it aims to regain momentum after a short attack. The company is still pursuing profitability. This stock is not risk averse.

verdict

Supply chain issues threaten to keep Lightspeed in stock in the kennel for the rest of 2021 and perhaps until 2022. Nonetheless, there’s still reason to get excited about this e-commerce company as it aims to open up its own space in the shadow of Shopify. ..

Lightspeed Stocks: Is it a rare buy or is the knife down?

https://www.fool.ca/2021/11/25/lightspeed-stock-is-it-a-buy-low-opportunity-or-a-falling-knife/ Lightspeed Stocks: Is it a rare buy or is the knife down?

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