BILL Stock Plunges 20% in a Month: Should You Buy, Sell or Hold?

Core Insights - BILL Holdings' shares have declined 20.4% in the past month, underperforming the broader Zacks Computer and Technology sector and the Zacks Internet - Software industry [1] - The company is facing a sluggish revenue forecast for Q3 fiscal 2025, impacted by trade policy changes and rising operating expenses [2] - A shift in payment volumes towards lower gross interchange categories has pressured BILL's profitability [3][4] Revenue and Earnings Estimates - For Q3 fiscal 2025, BILL expects revenues between $352.5 million and$357.5 million, indicating a year-over-year growth of 9-11%, a slowdown from the previous quarter's projection of 12-13% [5] - Non-GAAP earnings are projected between 35 cents and 38 cents per share, with a consensus mark of 38 cents, reflecting a year-over-year decline of 36.67% [6] - For fiscal 2025, revenues are expected between $1.45 billion and$1.47 billion, implying 13-14% year-over-year growth [6] Market Position and Growth Strategies - BILL Holdings has a strong long-term outlook, driven by an expanding customer base and strategic fintech collaborations [8] - The company processed approximately $85 billion in payment volume across 30 million transactions in Q2 fiscal 2025, indicating strong customer engagement [11] - BILL is enhancing its platform with international payment options and an embedded 1099 filing service to simplify tax compliance for SMBs [10][13] Strategic Initiatives - The company is actively investing in its go-to-market strategy to expand its presence in the accounting firm market, targeting over 40,000 CPA firms in the U.S. [12] - BILL's focus on automation, AI-driven financial solutions, and digital payment capabilities is enhancing its platform's value [14]