Why did Paysafe stock go down?
The fintech company lowered its 2021 and 2022 outlook due to Digital Wallet business being weaker than expected. The company says that European demand was lower than expected and that actions have been taken to revise pricing match interest.Feb 25, 2022
Is Paysafe a good investment?
Paysafe Has Little Appeal to Growth and Value Investors You'll see that there's not only not much appeal here for growth investors, but there's not much to excite value investors with Paysafe, either. Given the company's high depreciation and interest expenses, it's in the red on a net income basis.Feb 16, 2022
Who holds Paysafe stock?
Top 10 Owners of Paysafe LtdStockholderStakeShares ownedFidelity National Financial, Inc....6.91%50,000,000BlackRock Fund Advisors1.69%12,232,473SSgA Funds Management, Inc.0.95%6,883,131Canyon Capital Advisors LLC0.88%6,375,0536 more rows
What is the future of Paysafe?
According to its forecast, the Paysafe share price could drop substantially to 0.006 by May 2022. However, analyst predictions compiled by TipRanks were more encouraging, with the consensus target for the 12-month share price at $5.38 per share. The stock projection varied from the low of $4 to the high of $7.Dec 15, 2021
Is Paysafe a profitable company?
After the latest results, the nine analysts covering Paysafe are now predicting revenues of US$1.54b in 2022. If met, this would reflect a reasonable 3.6% improvement in sales compared to the last 12 months. Paysafe is also expected to turn profitable, with statutory earnings of US$0.11 per share.Dec 17, 2021
Can Paysafe Rebound?
Since Paysafe does not expect its digital wallets to grow quickly until 2023, the shares may not rebound tremendously until then. But given the company's strong management team, I think that it will turn itself around by then.Dec 6, 2021
Who owns BFT stock?
While it looked good then, it might be time to get out of BFT stock. Martin generally had good things to say about Bill Foley, the man behind BFT and Fidelity National Financial (NYSE:FNF), the company Foley acquired in a $3 million leveraged buyout in 1984 and built into a financial services powerhouse.Feb 24, 2021
Who owns PSFE?
Largest shareholders include Blackstone Group Inc, Cannae Holdings, Inc., Fidelity National Financial, Inc., Francisco Partners Management, LP, BlackRock Inc., State Street Corp, Canyon Capital Advisors Llc, Adage Capital Partners Gp, L.l.c., Two Sigma Investments, Lp, and Geode Capital Management, Llc.
Is PSFE undervalued?
An Intrinsic Calculation For Paysafe Limited (NYSE:PSFE) Suggests It's 43% Undervalued.Jan 7, 2022
Does Paysafe have debt?
Paysafe currently has a relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Paysafe's case is 84%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.Nov 29, 2021
Is paysafe undervalued?
At the current valuation, the company's stock is undervalued and has significant upside going into 2022.Jan 2, 2022
What happened
So what
Shares of Paysafe (NYSE: PSFE) plunged on Thursday after the payments platform issued a forecast for sales and profit that fell well short of investors' expectations.
Now what
Paysafe's revenue declined by 1% year over year to $353.6 million. That was significantly below Wall Street's projections, which had called for revenue of over $370 million.
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Worse still, Paysafe slashed its full-year financial outlook. Management now expects revenue of roughly $1.48 billion in 2021, down from a prior projection of about $1.54 billion.
What happened to Paysafe stock?
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PSFE's stock forecast
Paysafe released its third-quarter earnings on Nov. 11, disappointing investors. PSFE’s revenue and adjusted EBITDA were below estimates. Its revenue fell year-over-year and its loss swelled to $147.2 million due to an impairment charge from lowering the carrying value of its digital wallet segment.
Paysafe stock looks attractively valued
While the near-term forecast for PSFE stock looks weak, we should look at the long-term picture. The company is expanding its partnerships in the iGaming market, which should add long-term value. The company is also expanding outside the U.S. and is the leading open banking solutions provider in Latin America.
Will PSFE stock go back up?
Paysafe’s market cap has tumbled to just about $3 billion, giving it a next-12-month EV-to-EBITDA multiple of around 9.6x. That valuation is attractive and way below other that of other fintech companies, despite Paysafe not growing as quickly as competitors.
Should you buy the dip in Paysafe stock?
Paysafe’s price action after the earnings miss looks like an overreaction from markets. While the stock deserved to fall, the 42 percent slide is a bit much. Eventually, it should recoup some of the losses and rise.
What happened
If you're willing to be patient and hold Paysafe stock for the long term, it would make sense to buy the dip. The stock could be a winner, especially if you buy it at its current price.
So what
Shares of Paysafe (NYSE: PSFE) plunged on Thursday after the payments platform issued a forecast for sales and profit that fell well short of investors' expectations.
Now what
Paysafe's revenue declined by 1% year over year to $353.6 million. That was significantly below Wall Street's projections, which had called for revenue of over $370 million.
The iGaming Space and PSFE Stock
Worse still, Paysafe slashed its full-year financial outlook. Management now expects revenue of roughly $1.48 billion in 2021, down from a prior projection of about $1.54 billion.
Consumers Are Looking For Options
When you first hear the words “payment processors” companies like PayPal (NASDAQ: PYPL) or Square (NYSE: SQ ) may come to mind and with good reason. Those two companies are well established in the fintech space. However, for the time being, both companies are staying out of the iGaming space.
PSFE Stock Is Entering a Buy Zone
If I were to sound a cautionary note on PaySafe, I’d point out that it’s been around for over 20 years. That’s about as long as PayPal (23 years) and longer than Square (12 years). Yet, PaySafe is far less entrenched with brick-and-mortar retail than these companies, but that could be changing.
What happened?
Right now, PSFE stock looks like a tough trade. The 20-day moving average dipped below the 50-day moving average in March and hasn’t recovered.
Is it time to panic?
Shares of Paysafe plunged 16% on Monday after the company’s quarterly revenue guidance missed analyst expectations.
Looking ahead
If you’re a Paysafe shareholder, it wasn’t all bad news coming out of the company.