Lightspeed POS Inc (TSX:LSPD) continues to do well in 2020 even amid the COVID-19 pandemic. On August 6, the Montreal-based company released its second-quarter results which went up until the end of June 30. Sales of $36.2 million grew 51% from the prior-year period.
It’s a bit of a surprise the company did so well given that many of its key customers are retailers and restaurants – two types of businesses that have been hit particularly hard during the pandemic. But the company credits its ‘geographic diversity’ with many customers outside of North American as one reason why it’s been able to do well this year.
Year to date, shares of Lightspeed are up 9% as the stock continues to inch closer to its 52-week high of $46.54. And given the bullishness that there’s been in the markets over the past several weeks, it wouldn’t be surprising to see a tech stock like Lightspeed continue to rally, especially in light of its strong growth numbers.
However, to get to the $50 mark, Lightspeed’s stock would need to rise another 27%. It’s not impossible but a lot has to go right for that to happen. And that’s not probable if COVID-19 cases continue rising around the world and there’s the threat of more shutdowns in the future.
Lightspeed’s customers may be resilient right now, but that could change if cities start locking down again. And without a strong North American market, Lightspeed will have to rely on growing its business and adding customers in other parts of the world.
There are too many things to have to go right for Lightspeed to hit the $50 mark this year. A year from now, if global economies are closer to being back to normal, then it’s certainly a possibility, but I don’t see it happening anytime soon.
Tech Insider
