Q: Hi folks, Nuvei hit new 52 wk low today at C$19.50sh...copy/pasted this from respected analyst.."Global FinTech being tested.
Yesterday CAB Payments was more than cut in half. This was a darling IPO in the UK.
Today Worldline SA is being cut in half. Worldline is a several billion dollar company.
Both are in Europe & offered warnings about quarterly results."....is Nuvei in same business/regions as both CAB & Worldline???....I know Q2 was bad & subsequent selloff...but with Bitcoin rallying above $30,000...under normal circumstances, I would think Nuvei would rally...not hit new lows...thanks as always, jb Piedmont QC
Yesterday CAB Payments was more than cut in half. This was a darling IPO in the UK.
Today Worldline SA is being cut in half. Worldline is a several billion dollar company.
Both are in Europe & offered warnings about quarterly results."....is Nuvei in same business/regions as both CAB & Worldline???....I know Q2 was bad & subsequent selloff...but with Bitcoin rallying above $30,000...under normal circumstances, I would think Nuvei would rally...not hit new lows...thanks as always, jb Piedmont QC
5i Research Answer:
NVEI has $466M in revenue in Europe, Middle East and Africa (no individual country breakdown) so certainly is not immune to the sector's slowdown. Large cap US fintech stocks are also getting hit hard this week. Negative momentum does have a way of feeding upon itself, and NVEI's results and guidance and customer loss are adding more concerns for investors. The market backdrop has sharply turned, and small caps are getting crushed all over. NVEI's dividend confused investors, considering its debt. The crypto rally should help it, a bit, but for now fear, anger at the company and higher interest rates are driving the selling.