Why Lightspeed Commerce Stock Jumped 10% on Monday

Lightspeed (TSX:LSPD)(NYSE:LSPD) stock started to rally on Monday after major losses over the last month. But is it time to buy?

Amy Legate-Wolfe

Author Bio

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. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. 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, and travel with her husband.

Social Media

Follow Amy on LinkedIn and Canada Stock Digest.

Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 31, 2022 12:15 pm EST

Lightspeed Commerce (TSX: LSPD)(NYSE: LSPD) shares climbed 10% in early trading on Monday. This came after Lightspeed stock made several positive announcements, as the last week of January came to a close.

What happened?

Lightspeed stock shares climbed 10% on Monday, and 18% from its lowest point last week. This came as the company announced it would be releasing its third-quarter 2022 financial results after markets close on Feb. 2. The “one-stop commerce platform” also announced earlier last week that its “all-new” Lightspeed Restaurant platform would expand out. This comes as the company saw its United States-based customers outperform peers. Same-store sales increased 52% year over year compared to the industry average of 31%, according to Lightspeed.

So what?

It looks like there is some positive momentum for Lightspeed stock after a long time of waiting. The company came crashing down after a short-seller report last September. A tech crash created even more losses for the company, coupled with the announcement the next quarter may be hampered by supply-chain demands.

But confidence seems to be returning. This comes as Lightspeed stock appoints new board members, and analysts continue to weigh in on the stock. It seems everyone agrees the losses are completely overblown. And the recent additions of Nathalie Gaveau and Dale Murray to the board of directors is certainly exciting for expansion. Each has “extensive knowledge” of Europe and Asia-Pacific markets.

Now what?

Analysts continue to give Lightspeed stock a target share price of $117. That’s definitely still below where it was last year, but a 193% increase from where it is today. Analysts predict the company will report a loss of $0.11 earnings per share on Feb. 2.

Now, on the one hand, should Lightspeed show an improvement and not report major losses once more, this stock could run out of control. But if the opposite occurs, we may re-enter a tech crash like we saw this month. That being said, long-term investors may still want to consider Lightspeed stock — especially at these completely undervalued levels