Banking On Q2 Holdings: Fairly Valued But Enviable Fintech Foothold

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About: Q2 Holdings, Inc. (QTWO)
by: David Harper, CFA
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Summary

Dramatic January run-up renders Q2 fairly (if not richly) valued at 9.8x forward EV/revenue. No expectations in the short-run are warranted.

On balance, it's a tough call, but I am going to hold despite the run-up.

Their platform and analytical capability give them an enviable foothold in a dynamic fintech ecosystem.

Fintech makes me dizzy

Fintech is turning an aggressive corner, and while opportunities abound, on balance, I think it's going to be hard for public company investors to parse winners from losers. The reasons are