Adyen (ADYEY)
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Adyen (OTCMKTS:ADYEY) stock is the fifth-largest holding in the 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 payments platforms? That’s a good question, especially after its stock fell 15% on Feb. 8 due to its 2022 second-half results missing analyst estimates. Yet, while others are cutting jobs, it’s hiring, which could be a bullish sign.
“Amid a backdrop of widespread tech lay-offs and hiring freezes, we consciously grew our team in order to further scale the business,” the company’s latest shareholder letter read. “During this time, the labor market proved favorable for reaching our intended hiring speed.”
The shareholder letter goes on to explain the timeline for slowing its recruiting: “By the start of 2024, we expect our team to have reached its next maturity level. At that time, we will slow our hiring pace and allow the operating leverage inherent to our business model to kick in.”
This philosophy may spectacularly blow up in management’s face as we make our way through 2023. However, if it doesn’t, Adyen will be far ahead of its competitors. That’s an intangible you can’t put a dollar value on.
It seems Adyen has figured out that it’s better to find things for its staff to do to justify their jobs than cut employees that they may have to rehire 6-12 months down the road. Go Adyen!
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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