Joel Van Arsdale, Pedro Giesta and Tobias Vink
• Nov 16, 2023
Image Credit: FreePik
General Commentary & Highlights
- Q3 earnings season brought heavy volatility to payments stocks
- Share price increases or decreases of +/- 20% were common as shown above
- Technology investors are now hyper-sensitive to earnings misses, even small misses (-5% vs. expectation) seem to drive c. -20% impacts to share price
- Substantially negative guidance, such as that provided by Worldline recently or Adyen back in August (some impact recently recovered) leads to even larger share impacts of c. -50%
- The combination of some strong earnings announcements and favorable views on interest rates boosted the entire sector so far this month and it feels like a sector with real upside for investors
Please do not hesitate to contact Joel van Arsdale at Joel@FlagshipAP.com or Pedro Giesta at Pedro@FlagshipAP.com with comments or questions.