.png)
Shares of Lightspeed Commerce (TSX:LSPD) (NYSE:LSPD) plunged 30% in early morning trading. This comes after a loss reported by Lightspeed stock in the company’s earnings report. What happened? Lightspeed stock reported a loss of US$59.1 million during its second quarter for 2022 review. However, revenue nearly tripled compared to the year before.
Full Answer
How much is a share of LSPD worth?
Aug 09, 2021 · Lightspeed stock last closed at a price of $122.12 per share on Friday last week. By mid-morning, shares had declined by 5.3% to $115.65. Shares were supposed to naturally fall due to the dilutive...
What's happening with Lightspeed Commerce stock?
Sep 29, 2021 · What happened. Shares of Lightspeed Commerce ( LSPD -8.09%) were plummeting today after U.S. short-seller and investment manager Spruce Point Capital released a bearish report on the Canadian ...
Why is the stock market down today?
Sep 29, 2021 · LSPD stock was down 9.7% as of Wednesday afternoon. There’s more stock market news for investors to dive into below! InvestorPlace has all the latest stock market coverage that traders need to ...
What are analysts'forecasts for Lightspeed POS's stock?
May 06, 2022 · Lightspeed Commerce's stock was trading at C$24.68 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization (WHO). Since then, LSPD stock has increased by 2.7% and is now trading at C$25.34. View which stocks have been most impacted by COVID-19.
Lightspeed announced a massive stock offering
Lightspeed announced on Monday morning its plan to offer a total of 7,000,000 new common shares to the public. Underwritten by Morgan Stanley and Barclays, the latest equity offering could increase the number of issued and outstanding common shares by 8,050,000 shares if the underwriters fully exercise their over-allotment option.
Why is LSPD falling today?
Lightspeed stock last closed at a price of $122.12 per share on Friday last week. By mid-morning, shares had declined by 5.3% to $115.65. Shares were supposed to naturally fall due to the dilutive effects of the new equity raise.
A successful tech growth play
Lightspeed is a fast-growing TSX tech stock. Its revenue growth rate continues to surprise the market. Actually, shares rallied to reach new all-time highs after a wide revenue beat last week.
Is the TSX tech stock a buy today?
At one point I was concerned if Shopify ’s new point-of-sale (POS) and its payments platform could eat into Lightspeed’s retail niche. However, those concerns are being watered down as the company’s founder and CEO Dax Dasilva and his team’s vision is realized through strategic acquisitions. The results have been wonderful so far.
Stock Advisor Canada Returns
Returns since inception, October 2013. Current as of February 24, 2022.
How much did Lightspeed overstate?
Lightspeed inflated its business metrics even before its IPO and “overstated its customer count by 85% and gross transaction volume by 10%.”
Is Lightspeed stock volatile?
While Lightspeed is yet to respond to the allegations made against it, its stock is very likely to remain extremely volatile in the next few sessions. That’s why I would recommend investors to stay away from it till the time this market noise fades away.
Can investors change their investment thesis for Lightspeed?
And unless more information about these claims comes to light, investors probably shouldn't change their investment thesis for Lightspeed, or any company, based on one negative short-seller report.
Is Spruce Point organic growth slowing?
Spruce Point also says the company's organic growth is slowing and that Lightspeed's recent acquisitions come with "escalating costs with no clear path to profitability."
Lawsuits
The deadline for a number of class-action lawsuits aimed at Lightspeed stock seems to be the main driver of the downward spiral. There are several class actions out at the moment, and each is related to the short-seller report from back in September.
The short-seller report
The class-action lawsuits all focus on the same thing. For the period between September 11, 2020, and September 28, 2021, Lightspeed stock management “… made materially false and misleading statements regarding the Company’s business, operations, and compliance policies,” according to a statement by the law offices of Frank R. Cruz.
What should investors do?
The important thing to note here is that none of this has been proven yet. Spruce Point Capital Management made a lot of claims against Lightspeed stock. It also brought up some good points that the company may have stretched itself too far, too soon. Fine, but there is no proof yet that the company misled investors.
Stock Advisor Canada Returns
Returns since inception, October 2013. Current as of February 21, 2022.
What is Lightspeed POS?
Lightspeed POS Inc. provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally. Its SaaS platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, order-ahead and curbside pickup, point of sale, product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, loyalty, customer management, and tailored financial solutions. The company also offers Lightspeed Loyalty; Lightspeed Analytics; Lightspeed Payments, a payment processing solution; and Lightspeed Capital, a merchant cash advance program. In addition, it sells a suite of hardware products to complement its software solutions for the retail and hospitality segments, such as customer facing displays, stands, barcode scanners, receipt printers, cash drawers, payment terminals, and an assortment of other accessories, as well as provides installation and implementation services. The company was formerly known as LightSpeed Retail Inc. and changed its name to Lightspeed POS Inc. in October 2014. Lightspeed POS Inc. was incorporated in 2005 and is headquartered in Montréal, Canada.
What is the P/E ratio of Lightspeed?
The P/E ratio of Lightspeed POS is -41.59, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.
