Lightspeed (LSPD) & Shopify (SHOP): Best Stocks To Buy & Watch - Kalkine Media

May 26, 2021 06:28 AM EDT | By Anuj
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The big-tech rally and robust quarterly earnings from the software firms have supported markets’ broad-based bull run across Wall Street and Bay Street. On the Toronto Stock Exchange, top tech stocks Lightspeed POS Inc. (TSX:LSPD) and Shopify Inc. (TSX:SHOP) are marching toward their all-time highs.

Stocks of Lightspeed POS have swelled as much as 24 per cent in the last one week, guided by the higher revenue and 2x revenue rise outlook for fiscal 2022.

Shopify stocks too have gained almost 10 per cent in the last one week, led by the higher than estimated financial earnings and skyrocketing quarterly e-commerce sales.

Let us dive into these two-tech stock’s price performance and financials:

Shopify Inc. (TSX:SHOP)

The cloud-based software offers e-commerce solutions and platforms to vendors and buyers. The large-cap tech stock is up almost 26 per cent in one year, driven by the extraordinary growth in the e-commerce space. It is currently down 21.25 per cent from a record high of C$ 1900 apiece on February 10.

The stock closed at C$ 1497.68 apiece on May 25, up nearly 6 per cent against its 200-day simple moving average, indicating a bullish pattern.

Shopify is also listed on the NYSE. On Wednesday, the stock was in the green during the premarket hours.

The company expects continuous sales growth in the remaining of 2021 and steady earnings in the upcoming quarters. Its revenue surged to US$ 988.6 million, an increase of 110 per cent on a year-over-year (YoY) basis versus US$ 470 million in the first quarter of 2020.

Its earnings per share (EPS) outperformed Wall Street analysts’ expectations by 35 per cent.

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Lightspeed POS Inc. (TSX:LSPD)

The fintech firm offers digital payments and interface products.

The software stock’s previous close was C$ 87.75 apiece, up 158 per cent in one year, outperforming the S&P/TSX Applications Software Index in the same period.

Stocks of the SaaS-based solutions developer are up 11 per cent quarter-to-date (QTD). However, it is slightly down by 2.32 per cent year-to-date, recovering from the first quarter correction.
The company’s revenue was US$ 82.4 million for the latest quarter, a rise of 127 per cent YoY. Its earnings surpassed its previous revenue projection was in the range of US$ 68 million to US$ 70 million for Q4 FY21.

For fiscal 2022, Lightspeed expects a top line in the range of US$ 430 million to US$ 450 million from its operations, indicating a 2x rise compared to FY21.

It foresees a negative adjusted EBITDA of around US$ 30 million in FY22, which accounts for seven per cent of its total revenue.


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