Bill Holdings (NYSE: BILL) saw its stock price soar 5% on Monday, making it one of the top gainers of the day. This comes after a recent 10% drop in its stock price, leaving investors wondering if BILL stock is a good buy.
The company, which provides payment and billing solutions for small businesses, reported strong fourth-quarter results last week, beating revenue and earnings estimates. Despite this positive news, the stock took a hit, falling nearly 10% post-earnings.
Bill Beats Earnings Estimates
In the fourth quarter, BILL’s revenue surged 16% year over year to $343.7 million, surpassing estimates. Core revenue, which includes subscriptions and transaction fees, also saw a 16% increase to $301 million. Net income improved significantly, reaching $7.6 million, or 7 cents per share.
While the company’s financial performance was strong, its outlook for fiscal 2025 raised concerns among investors, leading to the stock’s decline last week. Bill Holdings is planning significant investments to accelerate its strategic priorities, which could impact its earnings in the short term.
Why Bill Stock Jumped 6% on Monday
Despite the recent selloff and analyst downgrades, investors saw an opportunity on Monday to buy into a company with strong growth potential at a discounted price. BILL stock is currently trading at $50 per share with a median price target of $68 per share, indicating a significant upside.
While the company’s investment plans may weigh on earnings in the near future, its consistent revenue growth and low valuation make BILL stock an attractive option for investors looking for long-term growth.
Overall, Bill Holdings’ recent performance highlights both the opportunities and risks associated with investing in the stock market. It’s important for investors to carefully evaluate the company’s financials, outlook, and long-term strategy before making any investment decisions.