Is the Lightspeed Stock (TSX:LSPD) Crash the Opportunity of a Lifetime?

Lightspeed (TSX:LSPD)(NYSE:LSPD) stock crashed 30% on Thursday, but this could be the opportunity long-term investors have been waiting for.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. Amy’s work can be found regularly on the Financial Post and MoneyWise Canada. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog Finley, and travel. Follow Amy on LinkedIn.

Published November 4, 2021 6:00 pm EDT

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Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) plunged on Thursday after its earnings review came in under analyst estimates. With a loss expected at $0.11 per share by analysts, Lightspeed stock instead announced an adjusted EBITDA loss of $0.20 per share for the second quarter of 2022.

What happened?

The loss came from a combination of the pandemic edging in on retail profits, fewer restrictions causing a drop in e-commerce, and supply chain demands, which included merchants using Lightspeed stock as well as Lightspeed trying to deliver hardware to new merchants.

So, while revenue almost tripled thanks to acquisitions and organic growth, unfortunately, the loss year over year more than doubled as well to US$59.1 million.

But for Motley Fool investors looking to hold long term, could this be the opportunity they’ve been waiting for?

So what?

So, Lightspeed stock dropped, and that stinks for shareholders, true. However, it seems that these could be short-term problems that long-term investors can wade through. As they say, “buy low and sell high.” While many investors in Lightspeed stock may be selling out of fear, as Warren Buffet says, when people are greedy, be fearful. When they’re fearful, get greedy.

It seems that Lightspeed stock remains a strong option if you’re thinking about the future of e-commerce. The company has a foothold in more than 100 countries and has made more than US$2 billion in acquisitions since January 2020. While that doesn’t mean success absolutely, it does show that the company continues to grow. And it has revenue to back that up.

Now what?

If you’re looking to invest long term, then now might be a great time to consider Lightspeed stock. None of the company’s fundamentals have really changed. In fact, while it did boost its loss from an expected $35 million to $45 million for the year, it also expects an increase in revenue to between $520 and $535 million.

As the pandemic subsides and supply chain demands lessen, Lightspeed stock may come roaring back. If you’re one of these investors looking to make a quick buck, this may not be the right time.

But if you’re all right with putting on blinders and waiting for the storm to pass, analysts peg shares at $140 in the next year. That’s a potential upside of 61% as of writing. Therefore, Lightspeed stock could indeed be the opportunity of a lifetime.