Why Bears Are Betting Big Against BigCommerce
Nov. 18, 2020 6:28 AM ET|
Chris Lau
DIY Value Investing
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Summary
Bears have a short float of over 30% against BigCommerce stock, betting on a bigger drop.
Quarterly and full-year forecast are good but could be better.
Bullish and bearish trade strategy explained.
This idea was discussed in more depth with members of my private investing community, DIY Value Investing. Get started today »
After BigCommerce (BIGC) went public, technology investors bet that the company would find the same returns as Canada’s success story, Shopify (SHOP). In the months following its initial public offering, speculators realize the stock is offering nothing more than trading on the “pop” (bounce upwards).
With momentum drying up and fundamentals questioned, markets are re-evaluating its valuations to the downside. Investors should not bet against the Bears, who have a massive short position on the stock.
Why Bears Are Betting Big Against BigCommerce (NASDAQ:BIGC) | Seeking Alpha
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