Full Answer
Is Paysafe stock a sure thing?
Before it came public through a special purpose acquisition company (SPAC) deal worth $9 billion last March, our Mark Hake thought PaySafe stock was a sure thing. It opened for trade on Jan. 31 at $3.37 per share, down around 75% in less than a year. The reason is fashion.
How does Paysafe plan to address the weakness in Q4 earnings?
In the short-term the company plans to address the issues by focusing on a better customer experience along with adjusting prices to more resemble the overall market. Paysafe also intends to discard under-performing product features and tidy up the balance sheet. However, the company still expects the “weakness to continue” into Q4.
Are You Ready to buy Paysafe’s transaction processing dip?
Transaction processing is, by its nature, a profitable business, especially when you are doing it across national lines, as PaySafe does. But if you are ready to buy this dip, you will need patience. These are early innings in the markets PaySafe is playing in, and a lot could happen, not all of it good.
How much is psfe stock worth after being de-spaced?
Its value after being “de-SPACed” was $9 billion. PSFE stock entered 2022 trade with a value of $2.8 billion, down 73% over the last year. Bulls ran off after its third-quarter earnings, reported Nov. 11, proved too much to bear.
Can you buy Paysafe stock?
Invest in Paysafe Group Limited on Stash Stash allows you to purchase smaller pieces of investments, called fractional shares, rather than having to pay the full price for a whole share. of Paysafe Group Limited stock, you'll need to sign up for Stash and open a personal portfolio.
Should I buy stock in Paysafe?
Paysafe Limited - Buy Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of PSFE, demonstrate its potential to outperform the market. It currently has a Growth Score of A.
What is wrong with Paysafe stock?
A Disappointing Third Quarter In Q3 2021 Paysafe reported a GAAP EPS (earnings per share) loss of 20 cents and revenue of $353.59 million. Analysts were expecting a loss of a penny per share and revenue of $370.63. A miss on both EPS and revenue is bad news for any public traded company.
Who holds Paysafe stock?
Top 10 Owners of Paysafe LtdStockholderStakeShares ownedFidelity National Financial, Inc....6.25%50,000,000BlackRock Fund Advisors1.53%12,232,473SSgA Funds Management, Inc.0.86%6,883,131Canyon Capital Advisors LLC0.80%6,375,0536 more rows
Why is Paysafe stock so cheap?
Paysafe stock is partly down due to meager revenue growth. Through the first three quarters of 2021, revenue is only up 5.6% from the comparable period of 2020. However, the stock is also down because the company's operating loss has worsened, despite generating higher revenue.
Will Paysafe recover?
According to the 9 industry analysts covering Paysafe, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$92m in 2023. So, the company is predicted to breakeven just over a year from now.
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.
Who is buying PSFE?
According to Seeking Alpha, principal shareholder Cannae (NYSE:CNNE) bought $22.2 million of its shares. This occurred in December 2021, when PSFE stock had already fallen a good deal. This has raised Cannae's stake in the company from about 8.26% to closer to just under 10%.
Why is Paysafe stock dropping?
Shares of Paysafe (NYSE: PSFE), a payments platform company, were falling this morning after the company missed Wall Street's consensus revenue estimate for the first quarter. The financial technology stock was down by 10.7% as of 10:48 a.m. ET on Wednesday.
What happened to Paysafe stock?
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.
PSFE's stock forecast
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.
Paysafe stock looks attractively valued
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.
Will PSFE stock go back up?
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.
Should you buy the dip in Paysafe stock?
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.
What Went Wrong?
Payment processors like PaySafe were hit hard over the last year. Paypal (NASDAQ: PYPL) is down by about 26%. Fidelity National (NYSE: FIS) is down by 10%. Processors are competing with fintech start-ups and no one is winning, with SoFi Technologies (NASDAQ: SOFI) down by 17% just during 2022 and Block (NYSE: SQ) down by 21%.
Is PSFE Stock Too Cheap?
Despite all the bad news, PaySafe’s low price has people pounding the table for it.
The Bottom Line on PSFE Stock
PaySafe has been hit by a perfect storm of trouble. The business it is in is losing popularity. The niches it is in are also out of favor.
Legacy Versus Next Generation Payments
The meta-narrative driving payments stocks right now centers around disruption. For the past decade or so, it’s been an easy trade to own Visa and Mastercard (NYSE: MA) as the ultimate winners in the “war on cash.” As the world goes from cash to plastic, it’s made fortunes for the credit card companies.
Paysafe: Comfortably Straddling The Payments Divide
PSFE stock has gotten caught in the payments crossfire. It’s no coincidence that its own shares really tanked as peers such as Global Payments have plummeted.
Numbers Look Fine
Paysafe hasn’t reported Q3 earnings yet. However, its Q2 earnings were quite good. The company grew revenues 13% year-over-year, which topped expectations. The company generates a strong EBITDA profit and is even profitable on a net income basis. It showed promising trends in several of its more exciting payments verticals.
PSFE Stock Verdict
It was really easy to buy into the Paysafe story back in February. It had a great deal sponsor with the Foley SPAC, a hot business category in payments, and SPACs were all the rage at that time. Now folks have forgotten about Paysafe’s strong backing, payments are out of favor, and SPACs are a scarlet letter.
PSFE Stock: Is There Reason to Believe?
If PaySafe could fulfill its promise, it’s now a truly cheap stock. You’re paying just two times revenue for a payment processor with a focus on the fast-growing online gaming sector.
Has the Foley Touch Failed?
The Foley who brought Paysafe public is Bill Foley. He also serves as chairman of Dun & Bradstreet (NYSE: DNB) and has made his money in fintechs like Black Knight (NYSE: BKI ). Foley also owns the Las Vegas Golden Knights hockey club.
Out of Fashion
Besides being focused on troubled international operations, Paysafe is also a payments processor. Until recently this was a hot market. Now it’s a cold one.
Is Paysafe a SPAC?
Paysafe could be a remnant of a potential SPAC bubble. Despite the fact that Paysafe is backed by Blackstone and is expanding into the cryptocurrency market—both signs of potential—some wonder if the sheer volume of recent SPACs could be enough to squander the brand.
Is Foley's deal with Paysafe a logical move?
In all, Foley's deal with Paysafe is a logical move. There's a looming reality of the overabundant SPAC market, but Paysafe's reach and success puts both the company and its reverse acquirer in a solid position, especially in an arena of unproven startups.
Where is Fintech headquartered?
The company has been on the cutting edge of fintech for the past 25 years. Headquartered in the Isle of Man (an island situated in the Irish Sea), the company is spearheaded by CEO Philip McHugh and maintains a multinational reach. Article continues below advertisement.
Is Paysafe a strong company?
However, Paysafe's monetary reality is a sturdy one that has only gotten stronger in recent months. The company hit a billion in revenue back in 2016 and has continued to grow. Article continues below advertisement.
Who owns the Vegas Golden Knights?
Foley, who also owns the professional ice hockey team Vegas Golden Knights and chairs Fidelity National Financial, really believes in Paysafe's reach. In a CNBC interview, Foley spoke with Jim Cramer about his SPAC's deal with Paysafe.