There's a new e-commerce kid on the block named BigCommerce (BIGC - Free Report) . Based in Austin and fresh out of an August IPO, I bought shares last week under $70 because I liked the risk/reward near all-time lows vs. its "initial public mania" that sent shares to $160.
While the acceleration of digital work-and-shop from home trends ignited by the coronavirus pandemic caused big peer Shopify (SHOP - Free Report) to rally over 150% this year, BIGC remained on the sidelines as concerns about its ability to compete outweighed its better valuation (26 times forward sales of $175 million when I bought shares last week).
After BIGC earnings on Nov 5, Wedbush highlighted the growth story expanding beyond established enterprise customers like Ben&Jerry's and Skullcandy...
"BigCommerce's subscription revenue growth accelerated to +26% as customers rolled off 90 day free trials, and partner and service revenue saw the benefit of strong GMV coming through the platform, leading to 82% revenue growth for that segment."
Why I Own Both SHOP and BIGC
In the video that accompanies this article, I go over the valuations of both companies and explain why I own both.
Plus, I detail the buying decisions I made for both, including SHOP's partnership with Alibaba's (BABA - Free Report) Alipay and a slew of good fundamental news for BigCommerce even as it sat depressed under $70 in mid-November.
I cover all these provocative points on the BIGC...
Who is Truist and why do they have a $95 price target?
What open-source checkout innovation did BIGC unveil recently that really got shares rocking?
Who tried to buy BIGC before the IPO for $1.5 billion?
Why did a 5 million share offering at $68 two weeks ago help put the bottom in?
What big fund manager bought 1.35 million shares at much higher prices in Q3?
And how a little FinTech partnership may be following the playbook of Square (SQ - Free Report) .
As I said to my TAZR Trader members recently...
This is music to my FinTech ears for the same reasons we love Square -- SaaS that seamlessly serves the small business person so they can focus their time and energy on selling, not on bookkeeping.
I also share which big fund manager made SHOP his top position in Q3.
While the king of e-commerce, Amazon (AMZN - Free Report) , sits near $3,100 and all investors wonder how long they have to wait for new highs above $3,500, I'm busy looking for alpha in the upstarts who have much more to gain in the globally expanding e-comm pie.
Be sure to watch the video for all the answers.
Disclosure: I own shares of BABA, SHOP, BIGC and SQ for the Zacks TAZR Trader portfolio.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
There's a new e-commerce kid on the block named BigCommerce (BIGC - Free Report) . Based in Austin and fresh out of an August IPO, I bought shares last week under $70 because I liked the risk/reward near all-time lows vs. its "initial public mania" that sent shares to $160.
While the acceleration of digital work-and-shop from home trends ignited by the coronavirus pandemic caused big peer Shopify (SHOP - Free Report) to rally over 150% this year, BIGC remained on the sidelines as concerns about its ability to compete outweighed its better valuation (26 times forward sales of $175 million when I bought shares last week).
After BIGC earnings on Nov 5, Wedbush highlighted the growth story expanding beyond established enterprise customers like Ben&Jerry's and Skullcandy...
"BigCommerce's subscription revenue growth accelerated to +26% as customers rolled off 90 day free trials, and partner and service revenue saw the benefit of strong GMV coming through the platform, leading to 82% revenue growth for that segment."
Why I Own Both SHOP and BIGC
In the video that accompanies this article, I go over the valuations of both companies and explain why I own both.
Plus, I detail the buying decisions I made for both, including SHOP's partnership with Alibaba's (BABA - Free Report) Alipay and a slew of good fundamental news for BigCommerce even as it sat depressed under $70 in mid-November.
I cover all these provocative points on the BIGC...
Who is Truist and why do they have a $95 price target?
What open-source checkout innovation did BIGC unveil recently that really got shares rocking?
Who tried to buy BIGC before the IPO for $1.5 billion?
Why did a 5 million share offering at $68 two weeks ago help put the bottom in?
What big fund manager bought 1.35 million shares at much higher prices in Q3?
And how a little FinTech partnership may be following the playbook of Square (SQ - Free Report) .
As I said to my TAZR Trader members recently...
This is music to my FinTech ears for the same reasons we love Square -- SaaS that seamlessly serves the small business person so they can focus their time and energy on selling, not on bookkeeping.
I also share which big fund manager made SHOP his top position in Q3.
While the king of e-commerce, Amazon (AMZN - Free Report) , sits near $3,100 and all investors wonder how long they have to wait for new highs above $3,500, I'm busy looking for alpha in the upstarts who have much more to gain in the globally expanding e-comm pie.
Be sure to watch the video for all the answers.
Disclosure: I own shares of BABA, SHOP, BIGC and SQ for the Zacks TAZR Trader portfolio.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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