Lightspeed Is Down 50% This Year — Buy It at the Lows?

: LSPD | Lightspeed POS Inc. News, Ratings, and Charts

LSPD – The shares of Lightspeed Commerce (LSPD) have plunged 77.8% over the past year over several macroeconomic headwinds that continue to weigh on the stock’s performance. So, let’s evaluate if it is worth buying the stock at the current level? Read on…

Lightspeed Commerce Inc. (LSPD) is an all-in-one commerce platform that enables merchants to innovate to simplify, grow, and provide exceptional consumer experiences. Its cloud commerce solution changes and combines online and physical operations, multichannel sales, new location growth, global payments, financial solutions, and supplier network connectivity.

The company’s shares have lost 52.8% year-to-date and 77.8% over the past year to close its last trading session at $19.09. A short report from Spruce Point, a deteriorating macro environment, and tough comparisons are the reasons why LSPD has slumped so much.

Here’s what could shape LSPD’s performance in the near term:

Inadequate Financials

LSPD’s revenue increased 77.9% year-over-year to $146.56 million for the fourth quarter ended March 31, 2022. However, its operating loss grew 163.9% from the year-ago value to $113.85 million.

The company’s net loss surged 172.4% from the prior-year quarter to $114.52 million. In addition, its net cash used in operating activities came in at $87.22 million.

Negative Profit Margins

LSPD’s trailing-12-month gross profit margin of 49.5% is 2.4% lower than the industry average of 50.7%. Also, its trailing-12-month ROA, ROC, and net income margin are negative 7.9%, 5.9%, and 52.6%, respectively. Moreover, its trailing-12-month negative EBITDA margin of 35.6% compares to its industry average of 12.9%.

POWR Ratings Reflect Bleak Outlook

LSPD has an overall D rating, which equates to Sell in our proprietary POWR Ratings system. The POWR ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. LSPD has a D for Stability and Quality. The stock beta of 3.03 is consistent with the Stability grade. In addition, its poor profitability is in sync with the Quality grade.

Of the 55 stocks in the C-rated Software – Business industry, LSPD is ranked #52.

Beyond what I’ve stated above, you can view LSPD ratings for Value, Growth, Momentum, and Sentiment here.

Bottom Line

While LSPD continues to profit from digital transformation initiatives, macro challenges hinder the stock’s recovery. Furthermore, analysts expect its EPS to decline by 120% in the current quarter ended June 2022 and remain negative.

Also, the stock is currently trading below its 50-day and 200-day moving averages of $22.25 and $38.14, respectively, indicating a downtrend. So, we think the stock is best avoided now.

How Does Lightspeed Commerce Inc. (LSPD) Stack Up Against its Peers?

While LSPD has an overall D rating, one might want to consider its industry peers, Amdocs Ltd. (DOX), which has an overall A (Strong Buy) rating and Citrix Systems Inc. (CTXS), and VMware Inc. (VMW), which have an overall B (Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


LSPD shares were trading at $17.96 per share on Tuesday morning, down $1.13 (-5.92%). Year-to-date, LSPD has declined -55.58%, versus a -16.79% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
LSPDGet RatingGet RatingGet Rating
DOXGet RatingGet RatingGet Rating
CTXSGet RatingGet RatingGet Rating
VMWGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Much Resistance @ 6,000 for Stocks?

The post-election rally was an exciting burst for the stock market. With that the S&P 500 (SPY) made new highs just above 6,000. Since then stocks have struggled begging the question: what happens next? 44 year investing veteran Steve Reitmeister provides the answers along with his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

Read More Stories

More Lightspeed POS Inc. (LSPD) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All LSPD News