BigCommerce Holdings, Inc.

BigCommerce Holdings, Inc. (NASDAQ: BIGS) operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations.

Key Highlights

• Bearish Technical: BIGS shares are hovering in a long-term as well as short-term bearish territory, with stock traded well below its crucial long-term as well as short-term support levels of 50-day and 200-day SMAs, implies a steep bearish indicator in the stock.
• Highly Leveraged Balance Sheet: The Debt/Equity ratio of the company at the end of FY21 stood at 2.43x compared to industry median of 0.50x, implies a greater balance sheet risk associated with the company.
• Loss making company: The company has reported losses at operating level since listing, and losses are pretty much higher, implies poor fundamentals.

Stock recommendation

BIGC shares are forming a lower top and lower bottom kind of pattern on the daily price chart and BIGC shares tumbling, down ~41% in the last one-month, and 51% in the past 3-months. Further, the company has bult upon poor fundamentals and posing significant balance sheet risk to the existing as well as potential investors. Hence, we recommend an “Avoid” rating on the BIGC stock at the closing price of USD 18.21 (as on March 14, 2022).

Technical Price Chart (as on March 14, 2022). Source: REFINITIV, Analysis by Kalkine Group

Note: The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.