PSFE - Down 95% From Its Highs Can This Dirt-Cheap Stock Rebound in 2024?
2023-12-21 05:55:00 ET
Entering the last week of 2023, the S&P 500 is up about 24%, erasing its losses from 2022. Much of those gains are coming from growth stocks that are back in favor with investors, concentrated in some of the best-known tech companies. The Nasdaq 100 tech index, a large-cap growth index, is up 53% this year.
But indexes are just that, and they don't tell every stock's story. Not every stock, or even every growth stock, is participating in the market rally. Digital payments processing company Paysafe (NYSE: PSFE) is down 18% in 2023 and more than 95% from its highs after going public, and it trades at a dirt-cheap valuation. Is this a buying opportunity or a value trap?
Paysafe offers digital payments solutions for many industries, including high-risk areas like gambling and foreign-exchange trading. It's also geared toward a higher-risk population that's underbanked and uses cash. It's like PayPal , but for companies that target cash payers or deal in complex sectors. However, it has plenty of users who just like its interface. For example, its peer-to-peer payments service, Skrill, has similar ratings to PayPal's Venmo and Block 's Cash App.
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Down 95% From Its Highs, Can This Dirt-Cheap Stock Rebound in 2024?