- Spruce Point Capital Management conducted a “forensic financial and accounting review” on Lightspeed Commerce Inc (NYSE:LSPD).
- Spruce believes Lightspeed is a “cash degenerative” North American roll-up of point-of-sale commerce solutions that has “covered up massive inflation” of its total addressable market, customer counts, and gross transaction volume.
- Spruce Point says Lightspeed “is covering up increasing competitive pressures and double-digit organic declines in its business with a flurry of acquisitions.”
- The short-selling firm thinks the share price could decline by 60% to 80% to $22.50- $47.00 per share.
- Investors buying Lightspeed at 23x and 47x estimated 2022 sales and gross profit are “failing to see the titanic competitive shifts happening in its business and industry,” Spruce Point observes.
- The company will “increasingly compete against industry stalwart Shopify Inc (NYSE:SHOP), and new entrants such as Amazon.com Inc (NASDAQ:AMZN),” it adds.
- Price Action: LSPD shares closed lower by 12.16% at $98.77 on Wednesday.
Recap: Brainstorm Cell Q1 Earnings
Brainstorm Cell (NASDAQ:BCLI) reported its Q1 earnings results on Monday, May 16, 2022 at 07:00 AM.
Here's what investors need to know about the announcement.
