Lightspeed Commerce (TSX:LSPD): Should You Buy This Top Tech Stock Today?

The tech sector has gained a reputation for rapid growth, but this top TSX tech stock has been on quite a roller coaster for the last few weeks on the stock market.

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Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) stock has been on quite a rollercoaster in the last few weeks, and many investors have been watching its performance on the TSX to see where it goes.

Lightspeed stock nosedived by almost 32% between September 22 and October 8, 2021. Since then, its share price spiked by almost 13% and kept an up-and-down momentum that might have left many investors feeling nauseated.

Since its IPO more than two years ago, Lightspeed stock has been a poster child for the tech sector. But its recent volatility in the stock market might have left you wondering whether it would be worth adding its shares to your investment portfolio.

If you want to know whether the stock could be worth buying right now, there are a few things to unpack. Today, I will take a closer look at what has been happening with the stock to help you make an informed decision.

What has been happening?

Spruce Point published a short-seller’s report that stated that the quality of metrics displayed by Lightspeed Commerce has been nothing more than “smoke and mirrors” and that the company’s latest acquisitions have shrouded the company’s true state. The short-seller’s report went as far as to say that Lightspeed Commerce is “a cash degenerative North American roll-up of point-of-sale commerce solutions” that is going through double-digit organic declines.

The grim picture painted by the report is directly clashing with the company’s announcements of new offerings. Lightspeed Commerce recently announced the Lightspeed Restaurant platform, which will help restaurants move forward in a post-pandemic world with better overall infrastructure.

The platform’s release in Europe over the summer was a success, and it will now launch in North America. The service effectively allows operators to increase the overall operational efficiency of their establishments. The world will need to stay atop online adoption, even after the pandemic ends, and Lightspeed Commerce has been introducing various innovative solutions that will fulfill the needs of operators in different industries for this purpose.

At writing, the stock is trading for $129.56 per share, and Lightspeed Commerce’s quarterly earnings report is due soon. The report could reveal a lot about the reality of its financial position and impact its performance on the stock market.

Foolish takeaway

Investing in technology has proven itself to be one of the best ways for Canadian investors to enjoy significant returns on their investments. At writing, Lightspeed stock is still exhibiting volatility on the stock market, and despite the roller coaster it has been on, the stock is up by almost 540% since its IPO in March 2019.

Regardless of its stellar performance so far, much remains to be seen about its long-term prospects. Many analysts suggest it would be the right time to hold the stock for now. If you already have established a position in the company, holding onto your shares might be the right option right now. If you have yet to buy its shares, consider waiting for the volatility to pass while keeping a close eye on the stock.

Lightspeed Commerce stock’s earnings report is due very soon, and that could shed proper light on whether the stock could be worth buying for the long run.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lightspeed POS Inc.

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