Lightspeed (TSX:LSPD) Stock Just Dropped 23%: Should You Buy?
It has been a trying time for Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) stock over the past month. Since September 13, 2021, its stock price has collapsed by 23%. Two weeks ago, Spruce Point Capital Management issued a strong sell report. It detailed why it believes Lightspeed could have 60-80% downside risk.
The short report has some serious issues to address
The report details a number of allegations. One of the largest concerns is that Lightspeed is growing to grow but with no end-point of profitability in sight. In order to keep up its mandate, Lightspeed will continually have to go to the equity markets (as it has been doing) to finance acquisitions and back-fill its lack of organic revenue and earnings growth.
Certainly, the 125-page report is fairly comprehensive, and there are …
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