TipRanks makes no warranties about the completeness, accuracy or reliability of such information. While there's lot to like about where Lightspeed is headed, right now, perhaps taking a seat on the sidelines is the best move.ĭisclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article.ĭisclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. However, the cold water poured on this stock from short-sellers must be taken into consideration by investors. Since its public market debut in 2019, acquisitions have been the major reason for the rapid growth of Lightspeed. These acquisitions have continued, making Lightspeed stock a hyper-growth option for investors, as of late. Analyst price targets range from a high of $156.35 per share to a low of $88.20 per share. This stock has an average Lightspeed price target of $121.56. Out of 13 analyst ratings, there are 10 Buy recommendations, 2 Hold recommendations, and 1 Sell recommendation. What are the Analysts Saying About LSPD Stock?Īccording to TipRanks' analysts rating consensus, Lightspeed is a Moderate Buy. Thus, this has been a difficult stock to short for extended periods of time. Accordingly, those questioning Lightspeed's growth potential at the onset of the pandemic were proven wrong. At a time when many investors were re-assessing their portfolios, Lightspeed stock was among the top buys for many aggressive growth investors.Īn investment in Lightspeed at the trough of the recession resulted in many investors holding a 10-bagger, until recently. Indeed, Lightspeed has found a niche growth market that has taken this stock much higher during the pandemic. Investors bullish on this omnichannel, e-commerce and payments company like the secular catalysts underpinning this stock. Given the concerns highlighted in Spruce Point's report, investors are now considering whether Lightspeed has the ability to live up to its previously-reported growth (accurate or not). However, one thing is for certain right now: many investors are sticking around to find out.Ĭan Lightspeed's Growth Trajectory Continue? Now, the question remains - will more downside be on the horizon? Is this a falling knife, or will Lightspeed stock rebound quickly? On the other hand, investors looking to potentially build a position in Lightspeed may have a more attractive entry point now. However, investors seem to be less bullish on this stock than before. Of course, time will tell how this ultimately plays out. Such heavy competition may not bode well for this stock over the long-term. Spruce Point suggests that in order for Lightspeed to continue growing at this rate, eventually the company will be forced to compete with the likes of Shopify (NYSE: SHOP) and Amazon (NASDAQ: AMZN). Accordingly, LSPD stock has dropped approximately 25% since this short report was released.Īmong the concerns pointed out in this report is the likelihood of competitive pressures driving margins lower. Indeed, as a hyper-growth stock in the payments solutions space, this report has caused many investors to take a step back with Lightspeed. Spruce Point alleges that Lightspeed hasn't accurately reported how many customers it has, how much revenue it obtains from each company, and how the company accounts for its sky-high growth rate. It seems this short report has done just that. Indeed, given how far and how fast Lightspeed stock has run, there comes a time when analysts begin to question the hysteria. The company levied a strong Sell opinion on the stock, highlighting concerns around Lightspeed's financial health. This past week, Spruce Point Management released a rather daunting short report on Lightspeed. (See Lightspeed stock charts on TipRanks) That said, let's dive into what the allegations against Lightspeed are, and determine whether there's light at the end of the tunnel for investors right now. Such a difficult task is never a fun undertaking. Investors now have to sift through the mud to get at what this growth stock's valuation should be. However, a recent short report from Spruce Point Management has hurt the investment thesis for this stock. Indeed, this company has posted impressive numbers of late. This e-commerce and omnichannel play has seen tremendous interest over the past few years as a hyper-growth stock. Create New Watchlist Create Create a new holdings portfolio Add Create + Add another position CloseĪmong the stocks that has been on investors' radar of late is Lightspeed POS Inc.
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