The Adyen share price crashed on Thursday, reaching its lowest point since April 7 after the company published its financial results and lowered its forward guidance. It plunged to a low of €1,167, down by over 37% from its highest point this year, meaning that it is in a bear market.
Adyen financial results
Adyen is one of the biggest fintech companies globally, helping well-known brands like Uber, eBay, Spotify, Adobe, and American Eagle to process their payments.
It operates in a highly competitive industry, where its top competitors include big names like Stripe, PayPal, and Block. Its services include online and in-person payments, capital, and the issuance of physical and virtual cards, as well as authentication, among others.
The company’s business has grown rapidly over the past few years as customers and firms have increasingly adopted digital payments, a trend that will continue in the coming years.
Adyen stock price is used to making huge swings whenever it publishes its financial results, and Thursday was not an exception.
Its results showed that revenue jumped to €1.08 billion in the first half of the year, up from €913 million in the same period last year. This growth happened as consumer spending continued and more companies joined its platform. Its processed volume was worth over $649 billion.
Despite the strong first half, the management is concerned about the state of the economy now that Donald Trump has started a trade war. The company has started to see the impact of these tariffs across its business, which explains why it slashed its guidance, saying:
“In our H2 2024 results, we anticipated a slight acceleration in our annual net revenue growth for 2025, assuming stable market volume growth — that is, the growth of our customers’ own businesses. As noted in our Q1 2025 update, a slowdown in market volume growth could weigh on this acceleration.”
Is Adyen a good buy?
Adyen is a top powerhouse in the payment industry. However, its performance as a publicly traded company has not been impressive. Its stock trades at €1,392 today, inside a narrow range it has remained in the past few years.
Other similar companies have also struggled to generate strong returns after the pandemic boom. For example, PayPal stock has crashed, moving its market capitalization from over $300 billion to $66 billion, while Block has slumped from over $100 billion to $46 billion today.
There are also concerns that the company is overvalue, considering that it has a trailing P/E ratio and a forward PE multiple of 49 and 41, respectively. These are huge numbers for a company whose growth is not all that impressive.
There is also a risk in the ongoing stablecoin growth as this will impact its business in the future. Analysts expect that many large companies will embrace stablecoins, which have lower costs to power their payments.
Adyen share price technical analysis
Adyen stock chart | Source: TradingView
The weekly chart shows that the Adyen stock price has remained in a narrow range since 2022. It has remained inside the support at €1,195 and the resistance at €1,863. The only time it exited this range was in 2023 when it crashed to €591 after its earnings.
Adyen share price has dropped below the 100-week and 50-week moving averages. On the positive side, it has formed a hammer candlestick pattern, pointing to a brief comeback in the near term.
If this happens, the key point to watch will be at €1,863, the upper side of the range, which is about 35% above the current level. A drop below the lower side of the channel will invalidate the bullish view.
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