Bigcommerce is the #2 e-commerce Saas company in the world behind Shopify. As more businesses launch e-commerce stores to sell things online, Bigcommerce will continue to grow and increase their ARR while providing strong value for shareholders.
Here's a few reasons why I think Bigcommerce is a strong stock to buy:
- 60,000 Stores and Counting. As of June 1st 2020, Bigcommerce powered over 60,000 stores in 120 countries. This is a far cry from Shopify's 1 million plus customer base but shows Bigcommerce is headed in the right direction.
- Retail E-commerce Will Grow This Decade: Due to the global COVID-19, a lot of consumers are buying stuff online. The ratio of e-commerce vs brick and mortar retail will continue to shift every year as more people shop online. More shoppers equals more people opening stores and trying to earn a living as an e-commerce seller.
- E-commerce Stocks Are Red Hot: E-commerce has been one of the hottest sectors in 2020 and I don't see that slowing down anytime soon.
- $100+ million in ARR: Bigcommerce makes $100+ million annually and should post strong numbers during their first quarter as a public company.
My only concern is the lockup period that ends around February 2021 because insiders may dump up to 50 million shares and substantially increase the total numbers of shares outstanding. Be sure to look out for this date. What I'll probably do is buy the stock now then sell before the lockup period. After that, I'll buy the stock again and hold it long term.