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SPS Commerce shares drop 60% amid Amazon revenue challenges but core growth stays strong

Analyst Insights
14 Jun 2026
Seeking Alpha
View Source
Bullish
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SPS Commerce's stock has fallen about 60% due to challenges in recovering Amazon-related revenue, though its core business continues to grow steadily at a high single-digit rate. The company’s recurring revenue and adjusted EBITDA are growing faster than overall revenue, showing resilience. Management is buying back shares aggressively, taking advantage of a valuation significantly lower than other software companies, while keeping a net cash position. The current valuation likely overestimates the risks tied to Amazon, and investors should watch for potential growth acceleration in the second half of the year.

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