Adyen Is A Buy (But I'm Not Buying)

Emanuele Mologni
48 Followers

Summary

  • Adyen is a company focused on quality. It boasts an efficient platform, a high-grade customer base and excellent financial results.
  • The company operates in the digital payments sector, which has significant room for growth.
  • Shares price is quite unpredictable and heavily influenced by expectations and sector trends, resulting in high volatility.
  • Other risks include short-term global economic uncertainty and long-term rationalization in the digital payments sector, plus high dependence on a few big customers.
  • The company's characteristics make it unsuitable for many investors and various investment strategies.

Close up of girl hold bank card and type on laptop

fizkes

Investment thesis

The choice of which recommendation I have to give to Adyen (OTCPK:ADYYF) in this analysis was tricky.

The financial data of the company is impressive, with fast-growing revenues over the last 10 years, and positive Net Income almost

This article was written by

48 Followers
I am CTO for a mechanical engineering and automation medium-sized firm, with a long-course interest for finance and trading.I have been investing personally for many years, on a mixed stock-ETF-bond portfolio, but with a strong preference for shares of well-structured but currently undervalued companies.I operate with a buy and hold strategy over a medium-long term (at least 1 year).I always use fundamental analysis as a basis for my research and to open new positions, while I use technical analysis, more rarely, to open short-term hedge positions if the market demands it.I look for opportunities in various sectors to maintain a well-diversified portfolio, however given my main occupation, I have a preference and a privileged point of view in the industrial and mech-tech sector.I write on Seeking Alpha to spread my research on the assets that I follow to other people, with the double objective (equal and complementary) of helping readers and crash-testing my own analyses.Comments, even contrary to my thesis, are always welcome.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NEXPF, PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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