The company’s shares have sold off strongly on economic and crypto risk and the latter turned out to be real with their crypto partner Voyager entering into serious problems.
Q1 margins showed some decline mostly on one-off investments, paving the way for recovery in subsequent quarters, and the company still gained cash.
Guidance will likely be lowered considerably, and we think the shares will be dead money for a while, although we think most of the problems are priced in already.
Longer-term, PayFac and prepaid will likely to keep growing strongly, so there is still some lure for the patient investor.
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