Shares of payment-processor Adyen NV extended their massive selloff Friday amid continued concerns about competitive dynamics in the U.S. Adyen
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on Thursday came up shy of volume and revenue expectations when it posted results for the first half of the year, with management flagging heightened competition, especially as customers focus more on their own bottom lines.
“We have seen increasing competitive pressure in North America, and that’s, to my view, related to a higher interest-rate environment, [as] more companies are looking at the bottom line, and that’s an environment in which they try to see if cheaper alternatives work,” Chief Executive Pieter van der Does said on the company’s earnings call Thursday. Adyen’s U.S. shares shed 39% in Thursday’s session and were off nearly 3% more in Friday afternoon action. See also: Adyen sees flurry of ratings moves after 39% price drop on Thursday Taking into account price action before earnings, Adyen shares logged their sixth session in a row of declines, marking their longest losing streak since Sept. 1, 2022, according to Dow Jones Market Data. They’ve fallen more than 45% over that span to secure their worst six-day stretch on record. The Dutch processor now ranks eighth in the Netherlands by market capitalization. It stood at fifth as of Wednesday, before the latest report, according to Dow Jones Market Data. Mizuho analyst Dan Dolev saw van der Does’ comments on competition as “euphemisms for pricing pressure,” suggesting to him that rival PayPal Holdings Inc.’s
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Braintree business is causing trouble for the Dutch processor. “In our view, Braintree’s aggressive land-grab strategy proved successful amid [Adyen’s first-half] results,” he wrote. “It likely contributed to the sharp deceleration in Adyen’s North America revenue growth.” In his view, PayPal “deserves more credit for consistent growth and share gains at Braintree.” Braintree may be a sore point now for Adyen investors, but it’s a touchy subject for PayPal investors, too. PayPal appears to be gaining traction with Braintree, but the quicker growth of Braintree relative to PayPal’s branded checkout business has c …
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PYPL,
+1.40%
Braintree business is causing trouble for the Dutch processor. “In our view, Braintree’s aggressive land-grab strategy proved successful amid [Adyen’s first-half] results,” he wrote. “It likely contributed to the sharp deceleration in Adyen’s North America revenue growth.” In his view, PayPal “deserves more credit for consistent growth and share gains at Braintree.” Braintree may be a sore point now for Adyen investors, but it’s a touchy subject for PayPal investors, too. PayPal appears to be gaining traction with Braintree, but the quicker growth of Braintree relative to PayPal’s branded checkout business has c …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]