This article was last updated on August 18, 2023
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Trading Halted After 25% Decline in Adyen Share Price
Trading in the Adyen share was briefly halted this morning following a 25% decrease in its share price. This drop in prices on the Amsterdam stock exchange was triggered by disappointing results from the payment company. Even after trading resumed, the decline continued, resulting in the share now being valued at over 38% less than premarket.
The Role of Adyen in the Payment Industry
Adyen, a Dutch company, facilitates payments for various well-known enterprises such as McDonald’s, Spotify, and Uber. It enables these companies to accept, process, and complete payments through methods like iDeal, PayPal, and credit cards.
Investor Disappointment and Plummeting Stock Value
The company experienced lower-than-expected turnover, which left investors disappointed. Corné van Zeijl, a stock market analyst at asset manager Actiam, explains that Adyen carries high expectations and has an expensive stock. The value of one Adyen share was still above €1400 earlier today, but has now dropped to just over €900.
Market Value Drops by 19 Billion Euros
“When a company fails to meet its turnover expectations, the impact is particularly severe.” Adyen’s market value has dwindled by a staggering 19 billion euros in a single day.
Factors Contributing to the Decline
Multiple factors have played a role in this decline, including inflation, rising interest rates, and price competition. Additionally, Adyen has recently hired a significant number of new employees, leading to higher wage costs.
“Adyen has set long-term goals and saw an opportunity to attract highly qualified personnel. As a result, they have added 551 employees in the first half of this year alone. Increased wages plus a larger workforce naturally result in higher costs,” explains Van Zeijl.
Since its IPO in 2018, Adyen has never experienced such a significant loss in share price in a single day.
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