LSPD – Buy or Wait?

I'll add to Dan's comment here - is it a buy at these rich valuations? It really depends on risk tolerance. Buying at all-time high valuations adds a certain level of risk but the reality is - it can continue to go up. Shopify is one that falls in this category. It usually makes some pretty big runs before pulling back and continuing its run. It could be that the pullback doesn't actually get to teh point you first where thinking about it before it runs again. Not saying LSPD will do the same, but it is a risk. This is why we stress investing for the long-term and averaging into positions.

The LSPD stock shows no signs of correction. How can one enter at this sky-high valuation?

Great, thanks for the detailed analysis. I will wait!!

The stock JUST broke overbought territory.

This rally is quite something.

From a technical standpoint, Lightspeed hit overbought levels three times in the last 3 months. In early September, it went through a pretty steep correction, going from the $47 range down to the $39 range.

In mid October, it went through much the same, $48ish to $40.

So, will we see a correction that steep this time? It's hard to say. Once the stock broke through the $48 price point, there's been nothing stopping it.

However, all signs point to some sort of short correction. Since early August, the stock developed a very strong bottom in the low $40 range. The question will be, is $48 the new bottom.

Long term we really like the company, it's been a very prominent stock on our Bull list and was one we really pushed post COVID to members. But, if you're looking to time an entry, technical signs point to waiting a bit.

However, RSI is never 100% accurate. The stock could continue its run. However with Lightspeed, the last times it's hit this point, it's underwent a significant correction.