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
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/24/2024 08:41:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/18/2024 08:36:23 PM
- BigCommerce and Ubique Digital Join Forces to Power Ecommerce Transformation for the Travel and Hospitality Industry • Business Wire • 09/18/2024 12:00:00 PM
- BigCommerce Customers WovenbyrdTM and Joval Wines Win B2B Ecommerce Industry Awards • Business Wire • 09/05/2024 12:00:00 PM
- The Next Big Thing: BigCommerce Strengthens Enterprise Capabilities with Next Generation Composable Commerce, B2B Solutions, Omnichannel Integrations, AI and More • Business Wire • 08/27/2024 12:00:00 PM
- BigCommerce Announces 2024 Customer Award Winners • Business Wire • 08/26/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/23/2024 08:31:08 PM
- BigCommerce to Host Sell-side Analyst Q&A Session At Upcoming BigSummit • GlobeNewswire Inc. • 08/23/2024 08:05:00 PM
- Leading UK Sporting Goods Retailer SportsShoes Launches Composable Commerce Site on BigCommerce • Business Wire • 08/20/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/16/2024 08:39:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/16/2024 08:38:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/15/2024 08:31:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 08:09:52 PM
- Global Footwear Retailer Soletrader Unveils High-Performance Headless Ecommerce Site Using BigCommerce • Business Wire • 08/05/2024 12:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 11:15:39 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 11:11:03 AM
- BigCommerce Announces Second Quarter 2024 Financial Results • GlobeNewswire Inc. • 08/01/2024 11:05:00 AM
- BigCommerce Announces Exchange of a Portion of its Existing 0.25% Convertible Senior Notes due 2026 for New 7.5% Convertible Senior Notes due 2028 and Repurchases of a Portion of its Existing 0.25% Convertible Senior Notes due 2026 • GlobeNewswire Inc. • 08/01/2024 11:00:00 AM
- Noibu and BigCommerce Partnership Drives Enhanced Website and User Performance with Defect-Free Platform for Online Retailers • Business Wire • 07/30/2024 01:00:00 PM
- BigCommerce to Present at Upcoming Investor Conferences • GlobeNewswire Inc. • 07/22/2024 08:05:00 PM
- BigCommerce Scores 24/24 Total Medals in 2024 Paradigm B2B Combine Midmarket and Enterprise Editions for Second Consecutive Year • Business Wire • 07/17/2024 12:00:00 PM
- BigCommerce to Announce Second Quarter 2024 Financial Results on August 1, 2024 • GlobeNewswire Inc. • 07/09/2024 08:30:00 PM
- BigCommerce Named a Leader in Both IDC MarketScape Worldwide Headless Digital Commerce Applications for Enterprise and Midmarket Growth 2024 Vendor Assessments • Business Wire • 07/01/2024 12:00:00 PM
- Bridgeline’s HawkSearch Named BigCommerce Preferred Technology Partner • GlobeNewswire Inc. • 06/20/2024 12:30:00 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 06/11/2024 08:19:19 PM
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