What happened?
The recovery in Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) stock seems to be gaining steam on Monday. After inching up by 8% last week, the TSX-listed LSPD stock was trading with close to 10% gains today at $42.68 per share at the time of writing. If it manages to maintain these gains in today’s trading session, it will mark its highest closing level since February 1.
So what?
It’s important to note that most tech stocks are witnessing a sharp rally across North America today, as the tech-heavy NASDAQ Composite Index in the U.S. jumped by more than 1.5%. This sector-wide rally could be one of the reasons why LSPD stock popped by about 10% today.
In one of my articles, I’d highlighted how Lightspeed Commerce made some key changes to its top leadership on March 24 and highlighted its rapidly growing business. The Canadian tech firm created a new chief operating officer role to keep an eye on the company’s operating effectiveness. Also, it recently hired Rani Hammond as its new chief people officer to strengthen its human resources team.
However, LSPD stock failed to rise even after this seemingly positive announcement due to a tech sector-wide selloff amid rising inflationary pressures and ongoing geopolitical tensions. But when the tech sector turned positive last week with investors’ rising hopes from the Russia-Ukraine negotiations, Lightspeed stock outperformed most of its peers to lead the rally. I see today’s sharp gains in LSPD stock as an extension of last week’s positive momentum.
This could be one of the reasons why LSPD stock is outperforming its Canadian peers today as well. Monday morning, tech stocks like Shopify and Nuvei were trading with 5% and 3% gains for the day, respectively.
Now what?
Despite the ongoing strength in its financial growth trends, Lightspeed stock has been one of the worst-performing tech stocks on the TSX since a New York-based short-seller targeted it in September 2021. While the short report made some serious allegations about Lightspeed’s business practices, leading to a massive selloff, it failed to provide any credible evidence for these allegations. That’s one of the reasons why I find LSPD stock really cheap right now after witnessing a big selloff in recent months. Given that, long-term investors may consider adding Lightspeed stock to their portfolio as recent gains could just be the start of its expected spectacular rally.
