BigCommerce Is Likely To Perform Much Worse Than This Major Peer, Says Bearish Analyst
Portfolio Pulse from Priya Nigam
BigCommerce Holdings Inc (NASDAQ:BIGC) shares dropped after BofA Securities downgraded the stock from Neutral to Underperform, reducing the price target from $11 to $7.50. Analyst Koji Ikeda cited few catalysts for medium-term growth, unattractive revenue and profit outlook for 2024, and soft demand impacting revenue growth. BigCommerce's revenue growth is expected to be 5.7% in 2024, below the U.S. industry outlook and significantly lower than peers like Shopify Inc (NYSE:SHOP). The company faces stiff competition from Salesforce Inc (NYSE:CRM) and Oracle Corp (NYSE:ORCL), and job postings have decreased by 40%, suggesting a focus on protecting margins over revenue growth.
March 25, 2024 | 4:07 pm
News sentiment analysis
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NEGATIVE IMPACT
BigCommerce downgraded by BofA Securities to Underperform with a price target cut from $11 to $7.50, due to soft demand and unattractive revenue and profit outlook for 2024.
The downgrade and price target reduction by a major analyst due to concerns over demand and competition directly impacts investor sentiment and could lead to a decrease in stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Salesforce Inc (NYSE:CRM) is identified as a fierce competitor in the upmarket segment against BigCommerce, impacting BigCommerce's revenue growth.
While Salesforce is mentioned as a competitor, the direct short-term impact on its stock price is uncertain without specific performance metrics or market share shifts.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Oracle Corp (NYSE:ORCL) is mentioned alongside Salesforce as a major competitor to BigCommerce in the upmarket segment.
Oracle's mention as a competitor to BigCommerce does not provide enough detail to predict a direct short-term impact on its stock price, given the lack of specific performance data or market dynamics.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Shopify Inc (NYSE:SHOP) is mentioned as a major peer of BigCommerce with a significantly higher expected revenue growth of 24% in 2024.
Being highlighted as a stronger performer in terms of revenue growth compared to BigCommerce, Shopify may see positive investor sentiment and potential stock price increase in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80