PYPL -2.02 to 52.22, making new multi year lows after a warning from a major European fintech company -
Barron's -
Financial-technology stocks were falling early Wednesday. A warning from a
major European payments company was sending jitters through the industry.
Worldline (WLN.France), a major payments company based in France, slashed
its full-year guidance on Wednesday as an economic slowdown hit sales and
profitability in key markets.
Consumers are directing their spending toward essential items such as
housing and food, rather than discretionary expenses such as entertainment
or luxury goods, Worldline said.
Worldline shares fell 58% in Paris. The warning spread nerves throughout
the payments and fintech industry. Shares of payments company Block (SQ)
dropped 3.9%, and PayPal Holdings (PYPL) was down 2.6%.
Worldline focuses on business in Europe, and specifically called out
Germany as a country where the macroeconomic environment was deteriorating.
Worldline said it is now expecting 6% to 7% growth in organic sales for the
year, after previously forecasting 8% to 10% growth this year.
PayPal generated around 18% of its revenue from Europe last year, while
it accounted for just 3.3% of Block's revenue, according to FactSet.
European payments companies were hit hard as well. Dutch company Adyen
(ADYEN.Netherlands) fell 6.4% in Amsterdam and Italy's Nexi (NEXI.Italy)
dropped 15%.
Write to Adam Clark at adam.clark@barrons.com
