Why Did Lightspeed Commerce Shares Plunge Today?

Spruce Point Capital Management conducted a "forensic financial and accounting review" on Lightspeed Commerce Inc LSPD.
Spruce believes Lightspeed is a "cash degenerative" North American roll-up of point-of-sale commerce solutions that has "covered up massive inflation" of its total addressable market, customer counts, and gross transaction volume.
Spruce Point says Lightspeed "is covering up increasing competitive pressures and double-digit organic declines in its business with a flurry of acquisitions."
The short-selling firm thinks the share price could decline by 60% to 80% to $22.50- $47.00 per share.
Investors buying Lightspeed at 23x and 47x estimated 2022 sales and gross profit are "failing to see the titanic competitive shifts happening in its business and industry," Spruce Point observes.
The company will "increasingly compete against industry stalwart Shopify Inc SHOP, and new entrants such as Amazon.com Inc AMZN," it adds.
Price Action: LSPD shares closed lower by 12.16% at $98.77 on Wednesday.