Adyen Plummets as Sales Miss Erases $20 Billion of Market Value

Adyen's shares plunged as aggressive competition in North America contributed to the slowest revenue growth since its initial public offering, erasing more than $19.6 billion of market value in a single day. From a report: Shares of the Dutch payment processing company fell a record 40.6% to $950 at 4:49 p.m. in Amsterdam, the lowest since May 2020. Trading was temporarily halted due to volatility multiple times in the day. Pricing competition, higher inflation and interest rates stunted revenue growth in the first half, the Amsterdam-based fintech firm said on Thursday. Net sales rose 21% to $803 million in the period, compared to an estimate of $843 million in a Bloomberg survey of analysts. Adyen has been a reliable growth stock, with revenue rising by at least 26% in every half since its listing in 2018 until the latest period. The disappointing results, which were also hurt by inflation and rising interest rates, suggest maintaining such momentum will be a challenge.

They had $800m in sales

[rsilvergun]

vs the $843m Bloomberg wanted and the jackals of Wall Street came down so hard trading was halted.

This is not a healthy system.

Re:

[dgatwood]

vs the $843m Bloomberg wanted and the jackals of Wall Street came down so hard trading was halted. This is not a healthy system.

Never was. That said, if the fundamentals are sound (I haven't looked), this could be a buying opportunity.

No big deal, I lost 2 million myself, in one day.

[140Mandak262Jamuna]

You see, my ancestral village is Pammal, Tamil Nadu, just 20 km from the ancient capital of the Chola Empire. [wikipedia.org]. My grandpa used to sit on this dilapidated sorry looking chair that had seen better days sipping the original Kumbakonam Degree Coffee. [wikipedia.org]. One day a passing archeologist from Stanford [stanford.edu] saw that chair and said, "Oh! My God, That is the original throne used by Raja Raja Cholan, CE 990. Where did you find it! It could be the ruins of the famed Gold Palace built by Aditya Karikalan! [wikipedia.org]. It must be worth at least 2 million.

As I was imagining how I was going splurge on the new found wealth, his professor showed up and said, "nah, it is just some cheap imitation, much more recent, probably 1600 CE. Not worth anything". Thus I lost probably 2 million dollars in one day.

The Adyen investors too imagined what they had was worth N billion, turns out it is definitely less than (N - 2) billion, might even be less valuable than a dilapidated chair from Chola ruins dating back to mere 1600s.

Re:

[dsgrntlxmply]

Once upon a time, we had a family garage sale. I put an old violin on the sale table. After a little while, I spotted a couple opening the case and examining the instrument, which was not in great condition. One held it up and spotted something through one of the f-holes. I had to work to restrain my reaction as they soon started furtively whispering and I overheard the word "Stradivarius". I let them have it for maybe $25, which became a family laugh over the years. They paid $25 for a poor 3/4 size

Re: No big deal, I lost 2 million myself, in one d

[S_Stout]

Yeah but we sold it to someone else for 3 million dollars who also fell for the writing. Now if you will excuse me, I must be heading out on yacht.

What's adyen?

[backslashdot]

Granted I haven't been to Amsterdam or the Netherlands in years but still.. Never heard of it. I feel like a company should not be worth 20 bil or more and me not ever heard of it.

Re:

[ByTor-2112]

That's what I'm thinking. Who is this and why do I care?

Re:

[niff]

You’ve never heard of it, but if you were here, most likely most of your payments were processed via Adyen. Perhaps you’ve paid using your debit card on an Adyen pin terminal, or your payments were processed in the backoffice via Adyen.

Adyen makes life really easy for webshops too, by supporting all sorts of payment methods, security checks and refunds, all via the same interface.

So, it might not be very visible, but its everywhere.

Translation

[NotEmmanuelGoldstein]

... Erases $20 Billion of Market Value

Translation: Shareholders aren't as rich as they imagined.

This isn't for nerds and it's definitely not news. The editors that approved this need to be dismissed.