The earnings season has yet to fully capture the FinTech IPO sector.
But there was plenty of other news to report — where macro headwinds were seen and at least one platform was forced to reduce its headcount.
Opendoor’s shares plunged 18.9% over the week, and the overall index lost 0.7% over the period.
cut staff — Once again
The company announced this week that it will cut around 560 jobs, or 22% of its workforce. The latest move comes after the company laid off 18% of its workforce, then 550 jobs, in November. In an opinion emailed to Real Trends that “we weathered a sharp transition in the housing market – the steepest and fastest rate hike by the Fed in 40 years, the more than doubling of mortgage rates from historic lows and the decline in home affordability have driven about 30% decline in new housing over the high in the last year. We are taking these actions now to better align our operating costs with anticipated near-term market opportunities.”
As Reuters notedAt the end of the year, Opendoor had nearly 13,000 unsold homes out of about 35,000 homes purchased in 2022.
Elsewhere, Lufax Holding listed shares in Hong Kong on April 13 and closed higher on its first day of trading, closing at HK$34.75 after initially opening at HK$33.50.
US-listed stocks – which are included in our FinTech IPO group – lost 4.7% over the week.
nCino shares are up 1.4% over the past five sessions.
The company said that this week In South Africa, TUHF has chosen nCino’s cloud banking platform to improve the lending process for their customers and “support the full credit lifecycle in their commercial loan book”. The press release states that by using nCino’s cloud banking platform, TUHF will speed up its lending processes and efficiently scale its business.
Confirm and Strip said they had expanded their partnership. As we noted at the time of the announcement, the extension makes Affirm’s Adaptive Checkout feature available to eligible Canadian Stripe users.
In this case, that means offering payment options ranging from six weeks to 36 months, starting at 0% APR, the press release says, with no late fees. Affirm shares are down 4% over the past five sessions.
Nuvei shares fell 3.4% as short seller Spruce Point Capital Management LLC claimed as described by Reuters, that the Paya acquisition is obscuring Nuvei’s “growth challenges”.
Spruce Point gave Nuvei a “strong sell” rating, estimating the long-term downside risk for the stock at 35% to 50%. Paya, according to the alleged short sale report, has lost market share.
“Nuvei faces a slowdown in inflation and consumer spending. Our analysis also suggests that underlying economic conditions are deteriorating and that the company relies heavily on growing its stock price to attract, retain and reward employees,” the report claimed, adding that Nuvei may have a stake in bankrupt crypto exchange FTX.
In separate Nuvei news, as highlighted here, “Deadpool” actor Ryan Reynolds has invested in Nuvei. The investment comes just weeks after Mint Mobile, a wireless carrier in which Reynolds owned a 25% stake, was bought by T-Mobile for $1.35 billion. Reynolds also invests in American Aviation Gin and Wrexham Football Club in the UK.
Shares of dLocal fell 3%.
In an announcement The company said it launched a new all-in-one payments solution to manage global platform payments. The offering, dLocal for Platforms, is an end-to-end payment solution for marketplaces, on-demand services and all other platform business models. According to the publication, dLocal for platforms integrates vendors, service providers or contractors on the platform itself, while dLocal lets them verify before disbursing funds. The platform can then accept payments on behalf of its users, split the payments between one or more users, deduct costs as needed, and hold funds pending payout. The company said funds could be moved within the platform to debit or credit funds.
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