The Dutch payment service provider, Adyen, did not meet the growth expectations as forecasted, which caused the stock to plummet. Here’s a summary of the key points:
– Revenue growth fell below analyst expectations
– Transaction volume increased by just under a third
– Stock temporarily down by 13%
In the third quarter of 2024, Adyen failed to meet expectations in both revenue and transaction volume. Revenue increased by one-fifth to 498 million euros, missing analyst forecasts, which had been over half a billion euros. The processed payment volume also saw slower growth than expected, reaching nearly 321 billion euros, disappointing many investors. Stifel analyst David Vignon attributed the slower growth to reduced transactions through the mobile payment service Cash App.
The stock of Adyen reacted promptly, losing up to 13% in value temporarily before slightly reducing the losses in the morning. Looking back, the stock has significantly declined from its peak in the fall of 2021 when it was over 2,800 euros. At that time, Adyen benefited from the online shopping boom and high demand for digital payment solutions during the pandemic.
Despite the current weak phase, many analysts still view Adyen’s long-term potential positively. Out of the 38 analysts surveyed by Bloomberg, 28 continue to recommend buying the stock, with an average target price of 1,600 euros, well above the current price. The company remains one of the most well-known growth stories in the European fintech sector, even as growth expectations dim.
In conclusion, Adyen continues to be under pressure as it did not demonstrate its usual growth momentum in the third quarter. The stock’s plunge reflects investors’ disappointment, but many experts still believe in Adyen’s leading role in global payments.
Regarding whether to buy or sell Adyen stock, the latest analysis from November 7 provides insights on the urgent need for action for Adyen shareholders. The analysis helps investors decide whether to enter the market or sell their shares. It is important to stay informed about the latest developments in Adyen stock.
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