Those who follow the ebb and flow of stocks have already noticed that, every other day, the assets of the website hosting company Locaweb (LWSA3) are often among the highest highs or among the worst lows.
Today, for example, around 11:15 am, the share had the biggest rise, with 4.18% appreciation, reaching R$ 5.48. A few days ago, on May 30, the stock closed the trading session with the worst performance on the Ibovespa, down 4.84%.
Why does it happen?
Locaweb is a growing technology company. It works by providing technology for virtual stores, selling email marketing tools, creating websites, among other services. “All companies in which the market sees great future growth, such as Locaweb, end up suffering a lot of ups and downs in these times of high interest”, explains Romero Oliveira, variable income specialist at Valor Investimentos.
He says that the high interest rate scenario also ends up hitting technology companies. So Locaweb suffers twice. “As we are experiencing this moment of uncertainty in relation to interest rates and inflation, these companies are very sensitive and they end up fluctuating a lot”, explains Oliveira. This is because most Locaweb clients pay for their services with financing, usually long-term.
In addition, Locaweb went public in February 2020. Until September last year, it had appreciated by more than 450% — which made the eyes of many individual investors shine. “A good volume of the company’s shares is with individuals and this also ends up causing more oscillations”, says the analyst.
And is it worth buying Locaweb?
Yes, according to BTG. In May, the company announced that it achieved a net profit of R$ 4.5 million in the first quarter of 2022, reversing the loss of R$ 8.3 million in the same period last year. It is the same recommendation from XP, which estimates a 12-month appreciation of up to R$12 for the share price.
But you have to be calm with this role. In the year, for example, Locaweb had an accumulated depreciation of 57.25%. In 12 months, they are down 80.48%.