4 ms·

I'm not saying they're a good company, but nothing I'm seeing here justifies a 40% drop. I'd need to do more analysis to have a better hypothesis, but this migh

• the-dude 3y ago
  Maybe it is not just them, but broader market expectations?
• ye-olde-sysrq 3y ago
  It could be that this is showing drying up of future (or near-term future) possibilities that this is a high-growth company. If investors were predicting they'd be growing at a certain rate (and a higher rate commands an exponentially higher P/E multiple) and now that rate is lower or even flat (or even shrinking), then that's going to be a big drop as a "small" movement on the X axis (of growth rate) produces a much larger movement down the Y-axis since it's an exponential relationship. TLDR if investors see this as a "party's over" signal and most of the big/easy growth is behind, they're going to flee.
• eigenvalue 3y ago
  More likely is that it was very overvalued before this, and now it's closer to a reasonable valuation given the deteriorating trends. It's still trading at something like 18+ times revenue. For Paypal, this stat is more like 2.3x, (although Paypal's EBITDA margin is a bit less than half of Adyen's, and clearly Paypal is more mature at this point). Still, even adjusting for that, Adyen remains very dramatically more expensive.