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.