We’re talking about companies that provide payment for card and online purchases, from online shopping to restaurants to subscriptions.
Shopify and Block: the market is waiting for a slowdown
According to Investing.com, the gap is strongest for Shopify. Analysts expect revenue growth of more than 25% in the coming years, but the market is already laying out more modest long-term growth of about 10% per year.
Block has a similar situation: investors envision only moderate expansion of the business in the future, while analysts expect faster growth.
Visa and Mastercard: the market is cautious
The main focus of UBS is on the largest payment systems: Visa and Mastercard. Their shares look more stable, but even here the market is cautious. Investors expect revenue growth of about 7% per year in the long term, which is below the optimistic expectations of analysts.
That is, even the leaders of global payments are no longer evaluated by the market as “ultra-fast-growing” companies.
The picture is tougher for some “classic” payment and infrastructure companies. According to UBS calculations, the market is actually laying down a decline in revenue at Fidelity National Information Services, Global Payments, and Fiserv. Investors assume that their business may shrink in the future.
UBS notes: the payments industry has historically been very profitable. But now the market is acting more cautiously, although analysts still see potential.
