@ofelixculpa Call me crazy but I sold a little Visa to average down on ADYEN here.
I appreciate the insight into the methodology. If ADYEN is hiring now for its next stage in growth, I want to be around to see that executed.
Plus it was my smallest position, so it didnt take much to average down a nice chunk of %. Good luck!
@firemist I have added the position in my portfolio as I saw it falling to 40%. I wasn't able to find any fundamental change in their business - apart from the lower margins (due to higher hirings) in a slowing down environment that affects every company (so not specific)
@colton18 I don't think it is dumb retail selling. This looks a massive sell-off and still not sure the reason.
The management is very confident with the hiring which is eating a bit the margins of the company. The scenario here is that all the competitors went to staff cut/headcount reduction (Stripe, Affirm, Klarna, etc..) but Adyen said we will keep hiring as we didn't go crazy with it in 2020-2021 as others companies did.
So now they see an opporunity to attract talen when it wasn't that easy a couple or years ago. And it completely aligns with their long term growth need as per their management statement.
I think market is more penalising that part? Not sure still
@ofelixculpa It was dumb retail partially because this was already visible to everybody, now transaction gross profit here is net revenue instead of the fee in full.
The main reason is down is more because of slower growth, not the accounting change that doesn’t make a difference in the grand scheme.
The only downside is that modeling out transaction gross profit/revenue after third party fees may be a bit harder and thus modeling take rate is harder.
@hmd If it was dumb retail, then the stock should bounce quick as soon as "educated" investors realise that there is a discount of 35% from one day to another. That is why I am trying to read as much as I can about the rest of the metrics. I havent seen any thing weird.
@ofelixculpa We have been trying to reach this company, but there is no way we get a response back via email, phone, go-to-live form. THey just dont reply.
And in top of that, there is no support available. Does anyone know how can we reach them, somehow ?
