Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) continued to see share growth on Tuesday, with Lightspeed stock climbing a further 10% on Tuesday.
What happened?
Lightspeed stock continued its rally on Tuesday, with shares up 22% in the last month, and a whopping 16% since reaching 52-week lows on Mar. 14. And yet, even with growth this high, the stock is still down 76% from all-time highs seen last September before the short-seller report hit the company hard.
This hit was followed by a few lefts and rights, as the Omicron variant and supply chain disruptions continued to weigh on the stock. Follow that with a dumping of tech stocks with market volatility, and Lightspeed stock sunk further and further. So, while there hasn’t been any news to send shares higher, it could simply be that investors are ready to get back into growth stocks.
So what?
The downturn in Lightspeed stock came with a slew of analyst recommendation changes. Now, granted, many of them slashed their target prices, often in half. However, those prices still remained far above where the stock price moved. While the short-seller report and supply chain woes hurt the company, analysts stated the selloff was beyond overblown.
In fact, the consensus price target for analysts right now remains at around $65. That provides investors with a potential upside of 63% as of writing. So, it might be a good time to jump back on the stock. At least, that’s what many investors have started to believe.
Now what?
That belief comes from investors watching both Canada and the United States increase interest rates, hoping to put a halt to inflation. Furthermore, the company lost so much of its value that it looks like quite the growth play, even at these levels. Finally, Lightspeed stock continues to prove that there is a lot of room for it to grow.
After making over US$2 billion in acquisitions, Lightspeed stock has been getting to work. It replaced Chief Executive Officer and founder Dax Dasilva with JP Chauvet, who is focused on bringing in profit. This came as the company announced revenue growth of 165% year over year last quarter, with expenses declining in a number of key areas.
Its customer base is practically endless, with Lightspeed stock setting itself up in country after country. From there, it could branch out and be an e-commerce giant akin to its larger peers. For now, its payment solution expansion is certainly something the company remains focused on for 2022 and beyond.
