There's a new e-commerce kid on the block named
BigCommerce ( BIGC Quick Quote 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 Quick Quote 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 Quick Quote 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 Quick Quote 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 Quick Quote 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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