Does Adyen N.V. Unsponsored ADR (ADYEY) have what it takes to be a top stock pick for momentum investors?
Adyen (ADYEY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Here is how Adyen N.V. Unsponsored ADR (ADYEY) and Cellebrite DI Ltd.
Adyen reassured investors when its 1H24 earnings results were better than expected, showing strong growth from North America and EMEA regions. The near-term and medium-term guidance were all reiterated, with management sounding confident in being able to achieve them. The company continues to gain share by winning new customers and expanding with existing customers.
Adyen posted first-half results that showed continued momentum in omnichannel commerce, particularly among clients expanding globally into new regions, and where platforms and localized payment methods are seeing strength and popularity.
Adyen N.V. (OTCPK:ADYEY) H1 2024 Earnings Conference Call August 15, 2024 9:00 AM ET Company Participants Josh Masser - Head, Investor Relations Ingo Uytdehaage - Co-Chief Executive Officer Ethan Tandowsky - Chief Financial Officer Conference Call Participants Harshita Rawat - Bernstein Justin Forsyth - UBS Adam Wood - Morgan Stanley Mohammed Moawalla - Goldman Sachs Hannes Leitner - Jefferies Fred Boulan - Bank of America Sandeep Deshpande - JPMorgan Josh Levin - Autonomous Alex Faure - Exane Darrin Peller - Wolfe Pavan Daswani - Citi Orson Rout - Barclays Andrew Bell - Wells Fargo Sanjay Sakhrani - KBW Brian Bergen - TD Cowen James Freeman - SIG Craig Mauer - FT Partners Josh Masser Good afternoon, everyone. And welcome to Adyen's H1 2024 Earnings Call.
Dutch payments company Adyen beat half-year core profit expectations on Thursday, helped by market share gains, slower hiring and lower one-off expenses.
Adyen is a financial technology platform offering end-to-end payment capabilities to large groups. Among other features, the company's technology is expected to offer in-store, digital, and in-app payments in a single solution. The new expansion could bring economies of scale that management promised in their corporate reports, and may drive costs lower and unleveled FCF growth up.
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Adyen reported a very strong processed volume number which is up 46% from the prior year, while revenues came in in-line, growing 21% from the prior year. As a result, take rates were the main focus in the quarter, as it came in at 14.7 basis points, slightly below the consensus of 15.7 basis points. The main reason for the weakness in take rates was due to mix, as collective large customer volume expansion resulted in processed volume growing faster than revenues.
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