The fear of a slowdown in growth and the phasing out of fiscal stimulus has put downward pressure on Lightspeed. However, it maintained its average revenue growth rate above 50% with the help of acquisitions. But on the other hand, it saw a higher churn rate in the hospitality sector. Moreover, it started services like Lightspeed Payments that increased its revenue per user. On the one hand, the lockdown has benefitted Lightspeed, as more and more small retailers subscribed to its platform. In the quarter ended March 2021, Lightspeed’s earnings will see the impact of seasonal weakness and prolonged lockdowns from the third wave. The fiscal fourth quarter (ending March) is the weakest, and the fiscal third quarter (ending December) the strongest because of the holiday season. Lightspeed’s business is exposed to seasonality. But when CEO Dax DaSilva gave a slightly bleak growth outlook for the fiscal fourth quarter of 2021, the stock started to fall. What led to this dip? The stock surged in February on the back of the pandemic-induced rally. Even the acquisition of U.S.-based retail omnichannel commerce platform Vend didn’t help Lightspeed stock surge past the $90 price. Lightspeed stock dipped 24.5% from its February high of $104.98. So, what should you do in this dip? Why did Lightspeed stock dip? The stock still has the potential to reach the $95-$100 mark or even cross it by Christmas 2021, representing a 26% upside. These factors can, at the most, stall the growth of Lightspeed stock but not pull it down. It is these factors that have changed and not the technology or the company. There are many vectors for this decline the third wave of the pandemic, the 2021 budget, and the upcoming earnings. Lightspeed POS (TSX:LSPD)(NYSE:LSPD) stock has dipped almost 8% so far in May, as the overall stock market growth stalled.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |