It seems Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) may be down but not out. Lightspeed Commerce stock rebounded 10% last week — a feat after falling from the short-seller report that sent shares tumbling a few weeks back.
What happened? Shares of Lightspeed Commerce stock climbed after news of its “Lightspeed Restaurant” platform. As I wrote in another piece in more detail, the platform aims to bring together the pre- and post-pandemic worlds. Now, you should easily be able to have contactless payments, online ordering, and analytics to run a “smarter, more efficient restaurant.” The platform had already come out in Europe over the summer. But as of Friday, it’s available in North America.
It’s a big win for Lightspeed Commerce stock, which saw shares fall 32% from peak to trough after the news from a short-sellers report. Again, I won’t get into too much detail here, but there were several accusations against Lightspeed Commerce stock. Most importantly, the report stated the company was hiding behind acquisitions and fudging its metrics.
But the recent launch puts that into question. The new platform also mentioned Lightspeed Commerce stock is using its acquisitions for the launch, such as Upserve and Gastrofix in the restaurant sector. As for e-commerce, the company announced that its Ecwid acquisition closed to help merchants reach shoppers.
So what? Cleary, these announcements are timed well. It’s unlikely that the accusations will be simply swept under the rug, but that could happen if there isn’t any real proof to the allegations. And the announcements coming out, likely pushing through a platform as quickly as possible, should help to hide that.
Furthermore, Lightspeed Commerce stock will announce its latest earnings report on Nov. 4. During the last report, it announced 220% year-over-year revenue growth. And it reaffirmed that growth, despite the short-seller report stating it wasn’t accurate. Still, Lightspeed management is likely to perhaps go into more detail to convince investors the growth is real.
Now, I’m not saying Lightspeed Commerce stock doesn’t have issues. Growth or not, the company has a massive debt load worth billions thanks to this sprint through acquisitions. That cannot be denied; it’s there in black and white. So, it’s something to consider before approaching Lightspeed Commerce stock.
What now? There’s a reason analysts aren’t touching this stock right now. Lightspeed Commerce stock has to win back investor trust. Perhaps for now, it’s a better idea to look elsewhere for growth. And luckily, there are several areas Motley Fool investors can look to do just that.
One solid option is WELL Health Technologies (TSX:WELL). WELL Health stock fell during the stock market pullback, down from its all-time highs. And many are wondering whether virtual healthcare will remain post-pandemic. News flash: it will. It’s far too cheap, too convenient, and too simple to ignore.
And that’s why WELL Health stock remains a top choice. Its acquisitions continue to bring in cash rather than create debt. And recently, its eyes have become set on the United States. Revenue has since grown 346% year over year, more even than Lightspeed Commerce stock!
What’s more, you can pick it up for $6.65 as of writing — far less than the $118 for a share of Lightspeed Commerce stock. And analysts have weighed in, believing there is an average potential upside of 76% as of writing in the next year, affirming it a “buy” or “strong buy.”
So, yes, Lightspeed Commerce stock is climbing again. But not by much. Meanwhile, WELL Health stock remains a strong long-term investment for the future.
The post Why Lightspeed Commerce (TSX:LSPD) Stock Climbed 10% Last Week appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns shares of Lightspeed POS Inc and WELL Health Technologies Corp. The Motley Fool owns shares of and recommends Lightspeed POS Inc.