What happened?
Shares of point-of-sale (POS) company, Lightspeed (TSX:LSPD)(NYSE:LSPD) have gained more than 75% year to date. Much of this gain has come in the past month, after the company presented its Q1 2022 earnings report. Since then, Lightspeed stock has gained about 25%.
So what?
At the outset of the COVID-19 pandemic, many investors were worried that Lightspeed wouldn’t be able to continue growing due to its focus on serving small- and medium-sized businesses. However, it managed to shift its focus from POS systems to other features within its product line like its e-commerce, loyalty, and analytics offerings. With that move, Lightspeed’s customers saw massive growth, and the stock ended up being one of the year’s most popular growth stocks.
In 2021, the stock seems to have been able to sustain that positive momentum. In its latest earnings presentation, the company reported that it had managed to land three impressive new customers. One of which is SpaceX. According to the deal, Elon Musk’s company has chosen to partner with Lightspeed Restaurant Solutions to support its headquarters’ hospitality operations. As part of the deal, Lightspeed Payments, Lightspeed Ordering, and Lightspeed Restaurant will be relied upon to operate the SpaceX café and manage inventory, POS, and ordering.
Now what?
Lightspeed is a stock that many investors have been watching for a better part of two years. However, it still faces stiff competition from the likes of Shopify and Square. More recently, reports have been released that suggest that Amazon may be moving into the POS space. If it does, Lightspeed could see a hit to its customer base. However, as it stands, Lightspeed is an excellent company with tremendous financials. Customers like SpaceX will do nothing but bolster its business over the long term as well.
