Nuvei (TSX:NVEI) stock in the red: Still a buy?

Highlights 

• Stocks of Nuvei Corporation (TSX:NVEI) plunged by almost five per cent on Friday, January 21, amid the fear of rate hikes and correction in the overvalued equities.
• In addition, the COVID resurgence along with other macroeconomic factors like the ongoing supply chain crunch might further slowdown the pace of economic recovery. 
• However, investors with a growth strategy can look upon Nuvei Corporation as it remains focused on expanding its payment technology footprint across industries.

Stocks of Nuvei Corporation (TSX: NVEI) have been trading in the red for a while amid the fear of rate hikes and correction in overvalued equities.

In addition, the COVID resurgence along with other macroeconomic factors like the ongoing supply chain crunch could be hampering the fintech stock’s performance as well.

Let us go through the overall performance of Nuvei Corporation.

Nuvei (TSX: NVEI) financial performance in Q3 FY2021

The financial technology company saw its total volume expand by 88 per cent year-over-year (YoY) in the third quarter of fiscal 2021 to US$ 21.6 billion.

Nuvei nearly doubled its revenue to US$ 183.9 million in Q3 FY2021, as compared to US$ 93.8 million a year ago.

The company saw significant improvement in its third-quarter net income as well, which soared to US$ 28 million in Q3 FY2021 as compared to a net loss of US$ 77.9 million in Q3 FY2020.

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Data source: Nuvei Corporation

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Nuvei Corporation stock performance

Last week, Nuvei stock fell by over 58 per cent from its 52-week high of C$ 180 (September 17, 2021) when it closed at a value of C$ 74.97 apiece on Friday, January 21. At this level, the payment technology scrip was also down by roughly 10 per cent in a week.

On Monday, January 24, NVEI stock tumbled a bit further to close at a value of C$ 74.85 apiece.

Bottomline

On January 19, Nuvei received the approval from the New York State Gaming Commission to leverage its payment processing technologies to licensed online sports betting platforms.

On January 13, the Montreal-headquartered payment tech company partnered with Wix, a Software-as-a-Service (SaaS) platform, to provide its payment tech to North American merchants.

These developments indicate Nuvei’s strategies of strengthening and increasing its payment ecosystem, which could draw in the attention of growth-focused investors.

While the slowdown of economic recovery can impact the stocks of different companies, investors can keep an eye on Nuvei Corporation as it remains focused on expanding its payment technology footprint across industries.

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