BIGC - BigCommerce: Sell On Stalled Growth (Rating Downgrade)

2024-06-17 13:09:32 ET

Summary

• BigCommerce shares have plummeted over 90% since IPO, showing little hope for a rebound.
• Terrible Q1 results indicate continued revenue deceleration and loss of market share to Shopify.
• Despite a cheap share price, BigCommerce's limited growth opportunities and inability to generate meaningful profit make the stock a sell.

One easy rule that has very few exceptions: don't trust a tech company that tells you it's addressing a massive market when it's also barely growing. Such is the case with BigCommerce Holdings, Inc. ( BIGC ), the e-commerce platform that is targeted toward mid-market enterprises. Amid macro-driven consumer softness, we all know that e-commerce growth has slowed down, as have the software platforms that power digital storefronts....

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