One of Canada’s top high-flying technology companies, Lightspeed POS (TSX:LSPD)(NYSE:LSPD) has seen its share price absolutely skyrocket in recent months. Since hitting a 52-week low of $10.50 per share following the pandemic, the company’s share price has recovered to the $90 level of late.
This is a company bolstered by secular growth in the rise of fully integrated point of sale systems needed by retailers looking to take on a hybrid bricks and mortar/e-commerce business model. Rather than seeing its market share or revenue growth shrink during the pandemic, this is a company that has seen growth take off. These factors have bolstered the company’s stock price, and cemented its place as one of the top TSX stocks growth investors have flocked to recently.
This past earnings release highlighted just how robust the company’s revenue growth rate is. Despite a pandemic, revenue grew nearly 80% this past quarter. That’s truly impressive growth rate for any company, let alone a retail-focused firm like Lightspeed.
There are some questions about the sustainability of this growth rate long-term. With the pandemic has come challenges for the company’s core clientele. Lightspeed’s customers have weathered the storm quite well, but as the storm rages on, we’ll see how "sticky" Lightspeed’s revenue growth rate is over time. That being said, the flip side of this argument is we could see a reopening of the economy in the coming quarters boost the overall health of the small and medium-sized enterprise group of companies. Such a scenario could take this stock a lot higher.
Any stock that is trading at these levels presents investors with risk. As such, I’d recommend investors invest within one’s risk tolerance level right now.
Invest wisely, my friends.
