Latest news with #MitchellHarper
Yahoo
13-05-2025
- Business
- Yahoo
3 Stocks Under $10 with Bad Fundamentals
Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices. The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead. Share Price: $5.24 Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. Why Do We Pass on BIGC? ARR growth averaged a weak 4% over the last year, suggesting that competition is pulling some attention away from its software Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend Poor expense management has led to operating losses BigCommerce's stock price of $5.24 implies a valuation ratio of 1.2x forward price-to-sales. If you're considering BIGC for your portfolio, see our FREE research report to learn more. Share Price: $4.62 Open around the clock, Denny's (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare. Why Are We Out on DENN? Disappointing same-store sales over the past two years show customers aren't responding well to its menu offerings and dining experience Free cash flow margin shrank by 9 percentage points over the last year, suggesting the company is consuming more capital to stay competitive High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate At $4.62 per share, Denny's trades at 8.9x forward P/E. Check out our free in-depth research report to learn more about why DENN doesn't pass our bar. Share Price: $11.02 Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment. Why Do We Think MTW Will Underperform? Demand cratered as it couldn't win new orders over the past two years, leading to an average 12.5% decline in its backlog Incremental sales over the last five years were much less profitable as its earnings per share fell by 42.3% annually while its revenue grew Underwhelming 1.5% return on capital reflects management's difficulties in finding profitable growth opportunities Manitowoc is trading at $11.02 per share, or 14.7x forward P/E. To fully understand why you should be careful with MTW, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Yahoo
08-05-2025
- Business
- Yahoo
BigCommerce's (NASDAQ:BIGC) Q1 Earnings Results: Revenue In Line With Expectations But Quarterly Revenue Guidance Slightly Misses Expectations
E-commerce software platform provider BigCommerce (NASDAQ: BIGC) met Wall Street's revenue expectations in Q1 CY2025, with sales up 2.5% year on year to $82.37 million. On the other hand, next quarter's revenue guidance of $83 million was less impressive, coming in 1.5% below analysts' estimates. Its non-GAAP profit of $0.07 per share was 32.5% above analysts' consensus estimates. Is now the time to buy BigCommerce? Find out in our full research report. Revenue: $82.37 million vs analyst estimates of $82.49 million (2.5% year-on-year growth, in line) Adjusted EPS: $0.07 vs analyst estimates of $0.05 (32.5% beat) Adjusted Operating Income: $7.59 million vs analyst estimates of $4.49 million (9.2% margin, 69% beat) The company dropped its revenue guidance for the full year to $343.1 million at the midpoint from $346.1 million, a 0.9% decrease Operating Margin: -2.9%, up from -10.2% in the same quarter last year Free Cash Flow was -$2.87 million, down from $11.57 million in the previous quarter Annual Recurring Revenue: $350.8 million at quarter end, up 3.1% year on year Market Capitalization: $413.3 million 'Our transformation efforts are leading to encouraging signs of progress, including positive increases in pipeline and leads in the three months ended March 31, 2025,' said Travis Hess, CEO of BigCommerce. Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, BigCommerce grew its sales at a 11.9% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, BigCommerce grew its revenue by 2.5% year on year, and its $82.37 million of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 1.4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. BigCommerce's ARR came in at $350.8 million in Q1, and over the last four quarters, its growth was underwhelming as it averaged 4% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in securing longer-term commitments. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. BigCommerce does a decent job acquiring new customers, and its CAC payback period checked in at 43.5 months this quarter. The company's relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments. We were impressed by how significantly BigCommerce blew past analysts' EBITDA expectations this quarter. On the other hand, its revenue guidance for next quarter slightly missed and its full-year revenue guidance was in line with Wall Street's estimates. Overall, this quarter was mixed. The stock traded up 4.7% to $5.45 immediately following the results. Big picture, is BigCommerce a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
BigCommerce (BIGC): Buy, Sell, or Hold Post Q4 Earnings?
BigCommerce has been treading water for the past six months, recording a small loss of 2.3% while holding steady at $5.20. Is there a buying opportunity in BigCommerce, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. We're cautious about BigCommerce. Here are three reasons why there are better opportunities than BIGC and a stock we'd rather own. Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. BigCommerce's ARR came in at $349.6 million in Q4, and over the last four quarters, its year-on-year growth averaged 5.1%. This performance was underwhelming and suggests that increasing competition is causing challenges in securing longer-term commitments. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect BigCommerce's revenue to rise by 3.5%, a deceleration versus its 14.8% annualized growth for the past three years. This projection is underwhelming and implies its products and services will face some demand challenges. Many software businesses adjust their profits for stock-based compensation (SBC), but we prioritize GAAP operating margin because SBC is a real expense used to attract and retain engineering and sales talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D. Although BigCommerce broke even this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 12.5% over the last year. Unprofitable software companies require extra attention because they spend heaps of money to capture market share. As seen in its historically underwhelming revenue performance, this strategy hasn't worked so far, and it's unclear what would happen if BigCommerce reeled back its investments. Wall Street seems to think it will face some obstacles, and we tend to agree. BigCommerce isn't a terrible business, but it isn't one of our picks. That said, the stock currently trades at 1.2× forward price-to-sales (or $5.20 per share). This valuation is reasonable, but the company's shakier fundamentals present too much downside risk. We're fairly confident there are better stocks to buy right now. We'd suggest looking at one of our top software and edge computing picks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
Q4 Earnings Outperformers: VeriSign (NASDAQ:VRSN) And The Rest Of The E-commerce Software Stocks
As the Q4 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the e-commerce software industry, including VeriSign (NASDAQ:VRSN) and its peers. While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions. The 5 e-commerce software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 0.9% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.2% since the latest earnings results. While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net. VeriSign reported revenues of $395.4 million, up 3.9% year on year. This print was in line with analysts' expectations, but overall, it was a mixed quarter for the company. The stock is up 9.2% since reporting and currently trades at $240.31. Is now the time to buy VeriSign? Access our full analysis of the earnings results here, it's free. Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses. Shopify reported revenues of $2.81 billion, up 31.2% year on year, outperforming analysts' expectations by 3%. The business had a strong quarter with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' total payment volume estimates. Shopify achieved the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 18.5% since reporting. It currently trades at $97.75. Is now the time to buy Shopify? Access our full analysis of the earnings results here, it's free. Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. BigCommerce reported revenues of $87.03 million, up 3.4% year on year, in line with analysts' expectations. It was a slower quarter as it posted full-year guidance of slowing revenue growth and a miss of analysts' billings estimates. BigCommerce delivered the slowest revenue growth in the group. As expected, the stock is down 9.9% since the results and currently trades at $6.04. Read our full analysis of BigCommerce's results here. Founded in 2006 in Tel Aviv, (NASDAQ:WIX) offers a free and easy to operate website building platform. Wix reported revenues of $460.5 million, up 14% year on year. This result was in line with analysts' expectations. More broadly, it was a slower quarter as it logged revenue guidance for next quarter in line with analysts' expectations. Wix had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 18.8% since reporting and currently trades at $185.10. Read our full, actionable report on Wix here, it's free. Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website. GoDaddy reported revenues of $1.19 billion, up 8.4% year on year. This number topped analysts' expectations by 1.4%. It was a satisfactory quarter as it also put up a solid beat of analysts' EBITDA estimates. GoDaddy delivered the highest full-year guidance raise among its peers. The stock is down 18% since reporting and currently trades at $174.29. Read our full, actionable report on GoDaddy here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Q4 Rundown: Wix (NASDAQ:WIX) Vs Other E-commerce Software Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Wix (NASDAQ:WIX) and the best and worst performers in the e-commerce software industry. While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions. The 5 e-commerce software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 0.9% while next quarter's revenue guidance was in line. While some e-commerce software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results. Founded in 2006 in Tel Aviv, (NASDAQ:WIX) offers a free and easy to operate website building platform. Wix reported revenues of $460.5 million, up 14% year on year. This print was in line with analysts' expectations, but overall, it was a slower quarter for the company with revenue guidance for next quarter meeting analysts' expectations. 'Wix sets a high standard for innovation and creativity, and we're constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,' said Avishai Abrahami, Wix Co-founder and CEO. Wix delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 12.4% since reporting and currently trades at $199.51. Read our full report on Wix here, it's free. Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses. Shopify reported revenues of $2.81 billion, up 31.2% year on year, outperforming analysts' expectations by 3%. The business had a strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' total payment volume estimates. Shopify scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.9% since reporting. It currently trades at $111.69. Is now the time to buy Shopify? Access our full analysis of the earnings results here, it's free. Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. BigCommerce reported revenues of $87.03 million, up 3.4% year on year, in line with analysts' expectations. It was a slower quarter as it posted full-year guidance of slowing revenue growth and a miss of analysts' billings estimates. BigCommerce delivered the slowest revenue growth in the group. Interestingly, the stock is up 2.7% since the results and currently trades at $6.88. Read our full analysis of BigCommerce's results here. While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net. VeriSign reported revenues of $395.4 million, up 3.9% year on year. This number met analysts' expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business. The stock is up 8.8% since reporting and currently trades at $239.49. Read our full, actionable report on VeriSign here, it's free. Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website. GoDaddy reported revenues of $1.19 billion, up 8.4% year on year. This result topped analysts' expectations by 1.4%. Overall, it was a satisfactory quarter as it also logged a solid beat of analysts' EBITDA estimates. GoDaddy delivered the highest full-year guidance raise among its peers. The stock is down 16.6% since reporting and currently trades at $177.27. Read our full, actionable report on GoDaddy here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
