Conference Call Replay | Down But Not Out - Initiating Coverage of the Fintech Sector
April 8, 2022
7:00 AM PD / 10:00 AM ET
On Tuesday morning, we initiated coverage of the Fintech sector with six stocks: Nubank, SoFi, Lightspeed, Shift4, Affirm, and Toast (Sell, TP = $19).
During the 18-month period between June 2020 and December 2021, 24 Fintech firms entered the public markets via IPOs and SPACs. They did not receive a warm welcome. 19 of the 24 are down significantly since their listings – on average by ~50%. Part of the blame rests on the macro headwinds – interest rates, inflation, ‘risk-off’ sentiment – which have afflicted all growth stocks over the past six months. But the sell-off in the Fintech sector has been especially ferocious – the group is down ~25% YTD vs. ~10% decline in the NASDAQ composite. So, what is behind the Fintech sector’s troubles and what’s ahead for the companies and the stocks?
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