The 3 Best Fintech Stocks to Buy for February 2023
Adyen (ADYEY)
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Adyen (OTCMKTS:ADYEY) the share is the fifth largest holding in Global X Fintech ETF (NASDAQ:FINX) with a 6.1% weighting.
Why do I like the Amsterdam-based company behind one of the world’s largest payment platforms? That’s a good question, especially after that the share fell 15 percent on February 8 due to second-half 2022 results missing analyst estimates. Yetwhile other cutters are working, it’s hiring, which could be a bullish sign.
“Against a backdrop of widespread technology layoffs and hiring freezes, we deliberately expanded our team to further scale the business,” the company’s latest shareholder letter said. “During this time, the labor market proved favorable to achieving our intended hiring rate.”
The shareholder letter goes on to explain the timeline for slowing recruitment: “In early 2024, we expect our team to have reached its next level of maturity. At that point, we will slow our hiring pace and allow the operational leverage inherent in our business model to kick in.”
This philosophy could spectacularly blow up in management’s face as we make our way through 2023. But if it doesn’t, Adyen will be way ahead of its competitors. It’s an intangible thing that you can’t put a dollar value on.
It seems that Adyen has figured out that it’s better to find things that employees can do to justify their jobs than to cut employees that they may have to rehire 6-12 months later. Go Adyen!
At the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, with reservations InvestorPlace.com Guidelines for publication.
Will Ashworth has written about investing full-time since 2008. Publications in which he has appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in both the US and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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