Lightspeed (LSPD) vs Shopify: Here's what stock performance suggests

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Lightspeed (LSPD) vs Shopify: Here's what stock performance suggests

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LSPD stock
Image source: © Solarseven | Megapixl.com

Highlights

  • On May 26, the LSPD stock climbed 10.7 per cent during the trading session and closed at C$ 31.85 per share.
  • As per Refinitiv data, the LSPD stock surged 15.3% in the last 30 days.
  • In Q4 2022, Lightspeed's total revenue increased by 78 per cent year-over-year to US$ 146.6 million.

Since the start of this year, the technology sector has remained weak and stocks of companies in the tech sector have declined rapidly over the past few months.

The S&P/TSX Information Technology Index, comprising companies like Shopify, Lightspeed, and Open Text Corporation, has dipped 37.5% year-to-date (YTD) and around seven per cent month-to-date (MTD).

After spending several trading sessions in the red, the technology sector jumped 2.3 per cent on Thursday and boosted the prices of tech companies in Canada.

Due to a sudden surge in the stock prices, some technology stocks caught investors' attention, including Lightspeed Commerce Inc. (TSX:LSPD).

Also Read: Activision soars as Berkshire ups stake: Does Buffett own TSX stocks?

On May 26, the LSPD stock climbed 10.7 per cent during the trading session and closed at C$ 31.85 per share. In Canada, tech stocks are often preferred by investors. However, they have remained sceptical this year due to increased volatility in the equities markets and recession fears.

Stocks like Shopify (TSX:SHOP) which once used to trade for over C$ 2,000 per share, are now trading below C$ 500 apiece. On Thursday, the SHOP stock closed at C$ 448.75 per share after recording a surge of 5.1%.

Let's find out if retail investors prefer the LSPD stock over the SHOP stock.

Lightspeed (TSX:LSPD) over Shopify (TSX:SHOP)?

As per Refinitiv data, the LSPD stock surged 15.3% in the last 30 days and 11.2% in a week. Meanwhile, the SHOP stock declined 18.3 per cent in a month and 10.6 per cent in a week.

Both stocks' recent price performance indicates that the retail investors could prefer the LSPD stock over the SHOP stock.

The LSPD stock holds a price-to-book (P/B) ratio of 1.08, which could mean that it is trading in sync with its book value.

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Bottom line

In Q4 2022, Lightspeed's total revenue increased by 78 per cent year-over-year to US$ 146.6 million. Meanwhile, revenue from subscriptions increased by 77% YoY to $70.5 million.

As per the company's financial report, despite adverse conditions in January and February, Lightspeed's results in Q4 2022 were robust.

Lightspeed forecasts revenue and adjusted EBITDA to be in the following ranges for fiscal 2023: Revenue of US$ 740 million to US$ 760 million and adjusted EBITDA loss of US$ 35 million to US$ 40 million.

Also Read: Lightweights in 2022: 5 junior Canadian stocks to buy in May

Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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