Bill.com: A Strong Company Dealing With Macro Headwinds

Jan. 13, 2023 7:37 AM ETBill.com Holdings, Inc. (BILL)5 Comments
Bert Hochfeld profile picture
Bert Hochfeld
21.12K Followers

Summary

  • Bill.com is the leading company in providing back office software to automate financial operations for small and medium-sized businesses.
  • It has become profitable and has started to generate cash.
  • It has a formidable competitive position with some effective advantages compared to other offerings.
  • Its market opportunity is substantial and provides for a multi-year growth opportunity.
  • The company, like most other IT vendors, faces significant macro induced headwinds, and its growth estimates for the coming year could be challenging to achieve.

Bill.com headquarters building exterior.

Michael Vi

Looking at Bill.com shares in the context of their valuation implosion and the demand impacts of the macro slowdown

Bill.com (NYSE:BILL) is yet another fallen angel from the crop of IPOs of the last few years. I wrote

This article was written by

Bert Hochfeld profile picture
21.12K Followers
Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which provided research services to major institutions including Fidelity, Columbia Asset, SAC Capital, and many other prominent institutions and hedge funds. He also operated the Hepplewhite Fund, a hedge fund that specialized in technology investments. Hedge Fund Research, an independent 3rd party firm that specializes in ranking managers, rated the Hepplewhite Fund as the best performing small-cap fund for the 5 years ending in 2011. In 2012, Mr. Hochfeld was convicted of misappropriating funds from a hedge fund he operated. Mr. Hochfeld has published more than 500 articles on Seeking Alpha, all dealing with companies in the information technology space. Highly esteemed for his investment wisdom accumulated over decades, Mr. Hochfeld ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in BILL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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