BigCommerce (NASDAQ: BIGC) Stock Providing Big Opportunities After Earnings Plunge
TUESDAY, NOVEMBER 17, 2020 | JEA YU
BigCommerce (NASDAQ: BIGC) Stock Providing Big Opportunities After Earnings PlungeEcommerce facilitator BigCommerce Holdings (NASDAQ: BIGC) stock has been frustrating investors since peaking at $162.50 on Aug. 26, 2020. Shares have sold off on every breakout attempt as it trades back towards post-IPO lows and outperforming the benchmark S&P 500 index (NYSEARCA: SPY). As we get closer to a COVID-19 vaccine approval, pandemic benefactors are being sold-off as money rotates back into value stocks. Ecommerce winners are seeing the same rotation as peers Shopify (NASDAQ: SHOP) and Wix.com (NASDAQ:WIX) experience heavy selling pressure. However, the selling on BigCommerce is reaching excessively bearish levels despite the recent earnings blow-out. This divergence can provide risk-tolerant investors the chance to get exposure at opportunistic pullback levels.
Q3 FY 2020 Earnings Release
On Nov. 5, 2020, BigCommerce released its fiscal third-quarter 2020 results for the quarter ending September 2020. The Company reported an adjusted earnings-per-share (EPS) loss of (-$0.28), beating estimates by $0.12. Revenues grew by 40.6% year-over-year (YOY) to $39.74 million versus analyst estimates of $36.34 million. Subscription revenue comprised 67% and service revenues were up 82% YoY and accounted for 33% of total Q3 sales. The pandemic has resulted in, “a shortening of sales cycle times, and an improvement in lead conversion and competitive win rates.”, according to BigCommerce CFO, Robert Alvarez. The Q3 annual run rate (ARR) was $167 million, up 38% YoY. The Company raised Q4 revenues to a range of $38.3 million to $38.7 million versus $37.45 million analyst estimates.
Conference Call Takeaways
BigCommerce CEO, Brent Bellm, provided more color on the quarter providing examples of clients utilizing the platform to launch ecommerce debuts including Chapstick, Nikon Canada, Chivas football club in Mexico, Baseball Hall of Fame and Little League International. The Company launched Channel Manager feature for ecommerce clients to manage a comprehensive omnichannel sales presence. The Company formed a partnership with the Wish ecommerce marketplace, which, “expands BigCommerce merchants’ visibility to 100 million monthly active users across more than 100 countries.” BigCommerce also signed new partnerships with SureDone, Feedonomics and Deliverr to boost merchant’s ability to sell cross channel. Enterprise accounts grew 48% YoY. The Quarter was also one of the strongest quarters for acquisition of new B2B and B2C merchants. International revenues rose 53% YoY, 67% YoY in EMEA and 42% in APAC. The guidance raise was directly related to an increase in revenue shares from its largest ad partner but expects positive renegotiation in Q4. The key driver for partner revenues is the actual sales volume or GMV which the Company continues to see YoY growth.
Citigroup Sell Rating
Shares of BigCommerce ran up to as high as $87.88 into the Q3 earnings release and triggered a sell-the-news reaction afterwards. As shares tried to stabilize near $72, they got slammed again. On Nov. 13, 2020, Citigroup initiated coverage on BigCommerce stock with a Sell rating and $65 target. The continued competition and return to value as COVID-19 vaccine approvals near has caused ecommerce stocks to lose steam quickly. BigCommerce shares have been punished excessively creating opportunistic pullbacks for nimble traders and risk-tolerant investors.
BigCommerce (NASDAQ: BIGC) Stock Providing Big Opportunities After Earnings Plunge
BIGC Opportunistic Pullback Levels
Using the rifle charts on the weekly and daily time frames provides a precise view of the landscape for BIGC stock. Since BIGC is a recent IPO, the weekly rifle chart hasn’t completely materialized with all indicators yet. However, it has produced a weekly 5-period moving average (MA) resistance at the $82.45 Fibonacci (fib) level. The daily rifle chart formed a market structure low (MSL) buy trigger above $80.06 and $76.50, which both triggered briefly only to fail and collapse again. The daily rifle chart has a bearish inverse pup breakdown as the stochastic rejected the 20-band cross attempt. This adds further selling pressure towards the daily lower Bollinger Bands (BBs) and potentially further opportunistic pullback levels at the $60.32 fib, $55.61 fib, $50.39 fib and the $45.10 fib. While these price levels seem a bit extreme, BIGC is a momentum stock with thin liquidity that moves with the high flying ecommerce marketplaces and facilitators like SHOP, WIX and Etsy (NASDAQ: ETSY). It’s prudent o monitor BIGC with these stocks together to gauge the price action and sentiment for the segment.
Other companies in this space:
ETSY
OLB
WIX
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Recent BIGC News
- BigCommerce Open Sources B2B Edition Buyer Portal, Giving B2B Enterprise Customers Full Control to Build and Customize Optimal Buyer Experiences • Business Wire • 05/07/2024 12:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 12:10:34 PM
- Travis Hess to Join BigCommerce as Company President • Business Wire • 05/06/2024 12:00:00 PM
- BigCommerce with Amblique Fires up Growth for Barbeques Galore with Launch of New B2B Storefront • Business Wire • 04/29/2024 12:00:00 PM
- BigCommerce Named a Leader in IDC MarketScape: Worldwide B2C Digital Commerce Applications for Enterprise 2024 Vendor Assessment • Business Wire • 04/24/2024 12:00:00 PM
- BigCommerce Global Partner Awards Recognize Outstanding Achievements Celebrating Exceptional Contributions in Ecommerce • Business Wire • 04/18/2024 12:00:00 PM
- BigCommerce Unveils The Next Big Thing: 100+ New and Innovative Features and Partner Integrations to Empower Brands and Retailers for Growth and Success • Business Wire • 04/17/2024 12:00:00 PM
- BigCommerce to Announce First Quarter 2024 Financial Results on May 9, 2024 • GlobeNewswire Inc. • 04/10/2024 08:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/08/2024 10:28:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:37:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:36:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:36:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:36:28 PM
- BigCommerce to Present at Canaccord Genuity eCommerce Forum • GlobeNewswire Inc. • 02/29/2024 09:05:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/29/2024 06:35:14 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 01:29:18 AM
- TechBlocks Joins BigCommerce Agency Partner Program • Business Wire • 02/27/2024 06:09:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/27/2024 01:27:29 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/22/2024 12:25:23 PM
- BigCommerce Announces Fourth Quarter and Fiscal Year 2023 Financial Results • GlobeNewswire Inc. • 02/22/2024 12:00:00 PM
- BigCommerce to Present at Morgan Stanley Technology, Media & Telecom Conference • GlobeNewswire Inc. • 02/20/2024 09:05:00 PM
- Bestway Europe Unlocks New Market Potential and Accelerates Business Growth with BigCommerce • Business Wire • 02/19/2024 01:00:00 PM
- BigCommerce Unveils Catalyst Storefront Technology, Empowering Rapid Launches of Composable Ecommerce Experiences • Business Wire • 02/08/2024 01:00:00 PM
- BigCommerce Named a Major Player in IDC MarketScape: Worldwide B2C Digital Commerce Platforms for MidMarket Growth 2024 Vendor Assessment • Business Wire • 02/06/2024 01:00:00 PM
- Leading UK Fashion Brand White Stuff Boosts Customer Experience with New Composable Website on BigCommerce • Business Wire • 01/30/2024 01:00:00 PM
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Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM