Lightspeed (LSPD) Soars 0.83% Despite JPMorgan Downgrade

Lightspeed (LSPD) shares surged 0.83% today, marking the third consecutive day of gains, with a cumulative increase of 2.81% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 1.29%.

The strategy of buying Lightspeed Commerce Inc. (LSPD) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 14.29% gain, slightly underperforming the Computer and Technology sector's 14.57% gain and the S&P 500's 18.09% gain. However, it outperformed the Russell 2000's 7.84% gain, indicating a relatively strong performance within the small-cap context. The strategy's consistency was mixed, with a 60% win ratio, suggesting that while there were periods of outperformance, there were also underperformance spells. The average drawdown of -11.58% highlighted the strategy's vulnerability during market downturns. Overall, the strategy showed resilience in moderate growth and provided a reasonable risk-return profile, making it a suitable choice for investors seeking steady, if not exceptional, gains.

JPMorgan Chase & Co. recently downgraded Lightspeed Commerce from a "neutral" rating to an "underperform" rating, which has likely had a negative impact on the stock price. This change in rating, along with a lowered price objective, reflects the firm's cautious outlook on the company's future performance.

Despite the downgrade, Lightspeed Commerce Inc is expected to report a rise in quarterly revenue when it releases its earnings results on May 22, 2025, for the period ending March 31, 2025. The anticipation of positive earnings results may influence the stock price positively, as investors look forward to the company's financial performance and growth prospects.