Latest news with #BigCommerceHoldingsInc
Yahoo
30-03-2025
- Business
- Yahoo
Is BigCommerce Holdings Inc. (BIGC) the Best Cloud Computing Stock to Buy Under $10?
We recently published a list of . In this article, we are going to take a look at where BigCommerce Holdings Inc. (NASDAQ:BIGC) stands against other best cloud computing stocks to buy under $10. Cloud computing refers to delivering computing services—such as servers, storage, databases, networking, software, and analytics—over the Internet (the 'cloud'). It means businesses and individuals can access these resources on demand instead of owning and maintaining physical servers and infrastructure, paying only for what they use. This article looks at a broader definition of cloud computing, not just cloud infrastructure companies. These include companies delivering products via the cloud, including the 'as-a-service' model, such as software-as-a-service (SaaS), Infrastructure-as-a-service (IaaS), Platform-as-a-service (PaaS), cloud-native applications, or platforms and services running on the cloud. The cloud computing industry has grown impressively over the years because of its cost-effectiveness, its ability to provide unlimited scalability, and the increased speed of digital transformation. Simply put, digital transformation and adopting new technologies have become crucial to survival and competitiveness in the current market environment, which leads to higher demand for cloud computing services. Even smaller firms can now afford to adopt new technologies with the help of cloud services. This allows them to become agile and well-equipped to compete and adapt to changing market dynamics. However, this technology still has a long growth trajectory ahead of it, as highlighted by Gartner in its latest report on this topic. In this report, Gartner had projected that 90% of organisations will adopt hybrid cloud by 2027. The research firm also forecasted that worldwide end-user spending on public cloud services will reach around $723 billion in 2025 from $596 billion in 2024. Of the total, IaaS and PaaS segments are expected to grow the fastest, with an increase of 25% and 21.6%, respectively. While these two segments are growing faster, SaaS is expected to remain the largest segment, contributing around 41% of the total spending. On CNBC's Closing Bell Overtime program some months ago, Goldman Sachs's managing director Eric Sheridan discussed AI and cloud computing, among other topics. He noted that the cloud computing sector remains robust and is further strengthened by the increasing deployment of AI technologies. Additionally, businesses are increasingly looking to integrate AI into their workflow to improve productivity and efficiency. In addition, he said that the industry is still looking for that 'killer application' for AI, which essentially means a use case that could have a sizeable transformative effect on industries or lives using AI. Adding to his views, Eric also highlighted that while AI's benefits are visible in the short term, long-term impacts and benefits are yet to become visible. Overall, this discussion indicated robust growth in cloud computing in the coming years. To identify the best cloud computing stocks to buy under $10, we first compiled a list of cloud computing stocks using screeners, ETFs and financial media reports. We then screened for stocks trading below $10, with a market capitalisation of at least $300 million, and a potential upside greater than 10%. We identified the top 10 stocks with the highest hedge fund ownership from this refined list by leveraging data from Insider Monkey's Q4 2024 hedge fund database. Finally, we ranked these stocks in ascending order based on the number of hedge funds holding positions in are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Highlighting the company's sector and industry, a technician working on a complex SaaS in a technology lab. BigCommerce Holdings Inc. (NASDAQ:BIGC) operates a leading open Software-as-a-Service (SaaS) platform for e-commerce. Its cloud-based platform enables merchants to build, manage, and scale online stores across multiple sales channels, including branded websites, marketplaces, social networks, and in-person point-of-sale systems. The global business-to-business (B2B) e-commerce market is expected to grow substantially over the next several years. According to the company, 35% of B2B businesses are not selling online today, leaving a large addressable market. BigCommerce should be able to grow competitively as it differentiates itself through its highly customisable, API-driven architecture and its focus on serving both B2C and B2B merchants. Thus, the company benefits from the growing adoption of digital commerce globally. In a note on March 12, Needham analyst Scott Berg maintained a Buy rating on BigCommerce Holdings Inc. (NASDAQ:BIGC) with a price target of $10. According to the analyst, the company is introducing a new payment solution, refining its product integration, and restructuring its go-to-market leadership to enhance B2B capabilities and cross-selling potential. All such measures are encouraging as they are aimed at improving brand awareness and setting up a clearer growth path, particularly in the company's SMB segment. That said, the analyst considers the current fiscal year a transition period, with stronger growth expected to materialise in the following year. He also points out that the payment solution adds flexibility to BigCommerce's intermediate-term model, potentially positioning the company for accelerated growth by FY26. Overall, BIGC ranks 5th on our list of best cloud computing stocks to buy under $10. While we acknowledge the potential of BIGC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
BigCommerce Holdings Inc (BIGC) Q4 2024 Earnings Call Highlights: Strategic Leadership and ...
Revenue: $333 million for 2024, up 8% year-over-year; Q4 revenue of $87 million, up 3% year-over-year. Non-GAAP Operating Income: Exceeded $19 million for 2024, a $25 million improvement over 2023; $10 million in Q4 2024. Non-GAAP Operating Margin: Expanded by 767 basis points in 2024; nearly 6% for the year. Operating Cash Flow: $26 million for 2024, a $50 million improvement from 2023; $12 million in Q4 2024. Annual Revenue Run Rate (ARR): Nearly $350 million, a 4% increase year-over-year. Enterprise ARR: Grew 7% to $262 million, representing 75% of total company ARR. Non-GAAP Sales and Marketing Expenses: 36% of revenue, improved from 41% in 2023. Net Debt: Approximately $28 million after repurchasing convertible notes. 2025 Revenue Guidance: $342.1 million to $350.1 million. 2025 Non-GAAP Operating Income Guidance: $20 million to $24 million. Warning! GuruFocus has detected 3 Warning Signs with BIGC. Release Date: February 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BigCommerce Holdings Inc (NASDAQ:BIGC) achieved a significant improvement in non-GAAP operating income, exceeding $19 million, which is a $25 million improvement over 2023. The company expanded its non-GAAP operating margin by 767 basis points and generated $26 million in operating cash flow, marking a $50 million improvement from the previous year. BigCommerce Holdings Inc (NASDAQ:BIGC) successfully reduced ineffective sales and marketing spend and decreased headcount by approximately 10%, contributing to improved financial performance. The company has recruited top leaders with expertise in commerce, including a new Chief Marketing Officer and Chief Revenue Officer, to drive the next phase of growth. BigCommerce Holdings Inc (NASDAQ:BIGC) launched Catalyst, an accelerated reference architecture, which has received positive feedback for its cost, time, and complexity benefits in composable architectures. BigCommerce Holdings Inc (NASDAQ:BIGC) did not achieve its revenue growth targets for 2024, with revenue increasing only 8% year-over-year to $333 million. Net revenue retention for enterprise accounts finished at 99%, which is below past performance and the company's expectations. Non-Enterprise ARR declined by 4% to $88 million, indicating challenges in the small business segment. The company is taking a conservative stance on growth projections for 2025, expecting mid-single-digit growth rates, reflecting macroeconomic uncertainties. Despite improvements, the company acknowledges that transformations take time, and early 2025 growth is expected to mirror Q4 2024 as transformation actions take root. Q: What are the key performance indicators (KPIs) to gauge the success of BigCommerce's new leadership and strategy? A: Travis Hess, CEO, mentioned that the leading indicator will be the pipeline and its quality year-over-year and quarter-over-quarter. They expect improved bookings by mid-year, with external messaging changes starting in mid-March to accelerate pipeline growth. Q: How does BigCommerce plan to achieve further operating margin expansion in 2025? A: Daniel Lentz, CFO, stated that the company does not need material revenue growth beyond current guidance to achieve margin expansion. They plan to reinvest in growth areas with strong ROI while maintaining a balance between margin expansion and revenue growth acceleration. Q: What is the strategy behind doubling the sales team by mid-2025, and how does it impact pipeline creation and conversion? A: Travis Hess, CEO, explained that the sales team expansion is fully loaded to drive efficacy in the second half of the year. The majority of resources were added by the end of Q4, with some specific roles still being recruited. The aim is to build momentum and achieve a strong rule of 40 profile by year-end. Q: How is BigCommerce engaging with partners following leadership changes, and what are partners asking for? A: Travis Hess, CEO, noted that partner engagement has been positive, with a focus on composability and making third-party capabilities more consumable. The company is concentrating on deepening relationships with select partners to enhance strategic partnerships and drive growth. Q: What are the expectations for non-enterprise ARR, and how does it fit into the overall growth strategy? A: Daniel Lentz, CFO, expects the non-enterprise segment to be relatively flat for the year. The focus remains on moving upmarket with enterprise accounts, but there is room to stabilize and grow the small business segment over time, leveraging products like self-serve Feedonomics and Makeswift. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-02-2025
- Business
- Yahoo
Is BigCommerce Holdings Inc. (BIGC) the Best Tech Stock to Buy Right Now Under $10?
We recently compiled a list of the . In this article, we are going to take a look at where BigCommerce Holdings Inc. (NASDAQ:BIGC) stands against the other tech stocks under $10. Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends. In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach. The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey's Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Highlighting the company's sector and industry, a technician working on a complex SaaS in a technology lab. On the bottom of our list is BigCommerce Holdings Inc. (NASDAQ:BIGC), a cloud-based e-commerce platform that empowers businesses to establish and manage online stores. The company provides a comprehensive suite of tools and services designed to support the development, customization, and optimization of e-commerce websites. The platform not only assists customers in creating and managing their own branded online stores but also facilitates seamless integration with various sales channels, including popular online marketplaces, social networks, and offline point-of-sale (POS) systems used in physical stores. BigCommerce Holdings Inc. (NASDAQ:BIGC) caters to a wide range of clients, from small businesses and mid-market enterprises to large corporations. In Q3 2024, BigCommerce Holdings Inc. (NASDAQ:BIGC) reported a 7.3% year-over-year growth in sales, reaching $83.7 million, which met street expectations. The company's EPS of USD 0.06 significantly surpassed consensus estimates. Serving both business-to-consumer (B2C) and business-to-business (B2B) merchants on a single platform, BigCommerce Holdings Inc. (NASDAQ:BIGC) expects to benefit from the increasing investment in e-commerce platforms which is projected to grow to $16.5 billion by 2027. With rising demand from larger B2C and B2B merchants, the company focuses on high-value enterprise accounts to support revenue growth. Overall BIGC ranks 12th on our list of the best tech stocks to buy under $10. While we acknowledge the potential of BIGC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BIGC but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-02-2025
- Business
- Yahoo
Is BigCommerce Holdings Inc. (BIGC) the Best Tech Stock to Buy Right Now Under $10?
We recently compiled a list of the . In this article, we are going to take a look at where BigCommerce Holdings Inc. (NASDAQ:BIGC) stands against the other tech stocks under $10. Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends. In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach. The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey's Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Highlighting the company's sector and industry, a technician working on a complex SaaS in a technology lab. On the bottom of our list is BigCommerce Holdings Inc. (NASDAQ:BIGC), a cloud-based e-commerce platform that empowers businesses to establish and manage online stores. The company provides a comprehensive suite of tools and services designed to support the development, customization, and optimization of e-commerce websites. The platform not only assists customers in creating and managing their own branded online stores but also facilitates seamless integration with various sales channels, including popular online marketplaces, social networks, and offline point-of-sale (POS) systems used in physical stores. BigCommerce Holdings Inc. (NASDAQ:BIGC) caters to a wide range of clients, from small businesses and mid-market enterprises to large corporations. In Q3 2024, BigCommerce Holdings Inc. (NASDAQ:BIGC) reported a 7.3% year-over-year growth in sales, reaching $83.7 million, which met street expectations. The company's EPS of USD 0.06 significantly surpassed consensus estimates. Serving both business-to-consumer (B2C) and business-to-business (B2B) merchants on a single platform, BigCommerce Holdings Inc. (NASDAQ:BIGC) expects to benefit from the increasing investment in e-commerce platforms which is projected to grow to $16.5 billion by 2027. With rising demand from larger B2C and B2B merchants, the company focuses on high-value enterprise accounts to support revenue growth. Overall BIGC ranks 12th on our list of the best tech stocks to buy under $10. While we acknowledge the potential of BIGC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BIGC but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and . Disclosure: None. This article is originally published at Insider Monkey.
