Shares of Payoneer, one of the largest online payment systems in the world, started trading on the NASDAQ stock exchange under the ticker symbol PAYO. The company decided to go public after it has completed a merger with SPAC FTAC Olympus Acquisition, and has set an IPO price of $10.80.
What is Payoneer?
Payoneer is an innovative online payment platform that connects businesses and individuals through its web-based platform and mobile app. The company was founded by Yuval Tal and Yaniv Chechik in 2005 in Israel and has had many ups and downs over the years. In general, Payoneer provides a simple and comprehensive payments solution, that is much more cost-effective and convenient than other online payment solutions and in particular, its biggest rival, PayPal.
At the time of writing, Payoneer is valued at $3.3 billion following the merger with FTAC Olympus.
Payoneer Stock: Is it a buy right now?
Long story short, Payoneer is a great online payment service, especially for freelancers and those who have to deal with currency conversion on a daily basis. As a matter of fact, just recently we have posted a comparison review between Payoneer and PayPal and concluded that for some types of users, Payoneer is the better option of the two.
Still, this does not make Payoneer a stock to buy right now. In general, IPO stocks tend to be at the early stage of their life cycle, and thus, IPOs sometimes tend to be underpriced.
When we analyze the company’s fundamentals, Payomeer’s is expecting a revenue of $432 million for 2021, which sets its EV-to-sales multiplier at around 7.7 at the current market price of $10.37 per share. Moreover, Payoner is a profitable growth company that operates in over 200 countries and supports 150 different currencies. In 2021, it expects growth in revenues of 25%, and a total payment volume of $64 billion.
Overall, Payoneer has strong fundamentals and the company seems to have solid revenues and good reasons to keep growing. At the same time, since Payo stock started trading on the open market, its share price is trading near the IPO price, which makes the current market sentiment neutral. Further, Payoneer has sort of an alleged shady past that includes offering payment services in pornography, scam dating websites, and more.
However, Payoneer is on the right track right now and the advantages of using this platform compared to other competitors in the market could be the most important thing when we analyze this stock. Ultimately, if Payo stock breaks above $11-$11.15, then it’s might be a sign to take a long position with a stop loss at $10.5.
How to buy Payoneer stock?
The process of buying Payoneer shares is similar to buying any other US-listed public company. You’ll have to find a brokerage firm that supports US shares and provides a stable and cost-effective connection to the markets. Some online platforms that support Payoneer include AllInvest, and eToro (CFDs).
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