Bill Holdings (NYSE: BILL) stock hasn't lived up to investor expectations -- yet. It went public before the pandemic at a time of record initial public offering (IPO), when tech stocks were hot and valuations teetered on the unreasonable. It had a tough time proving itself in a long bear market when tech and growth stocks, as well as high valuations, went out of favor. Bill stock is now down 80% from its highs as the market is embracing tech stocks again. Is it the right time to buy?

Bill provides financial automation software for small and medium-sized businesses. It concentrates all of a client's financial applications, such as accounts payables and receivables, spending, and payments, in one place, making it simple to manage, and it connects them with financial institutions for seamless transactions.

It counts more than 470,000 clients using its software-as-a-service plans, and it adds thousands of new clients all the time. It connects to 5.8 million network members, or companies that transact on its platform. These include more than 7,000 accounting firms and banks like JPMorgan Chase (NYSE: JPM). It benefits from strong network effects. The more clients that sign on, the more financial institutions want to partner with it, leading to more businesses being able to benefit from its platform.

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Source Fool.com