The online payments market is getting hot again. Except for PayPal (PYPL), which is struggling with falling user activity, the prospects are bright for firms in this sector.
In the fintech space, Block (SQ) rose by around 12% right after the firm posted results. Markets reacted positively to Block’s core earnings expectations of $570 million to $590 million for the first three months ended March 31, 2024. Block expects to post a profit of over $200 million in the full year of 2024.
In Q4, Block posted revenue of $5.77 billion, up by 24% Y/Y. In effect, SQ stock is no longer a disaster stock.
Global Payments (GPN) reported revenue of $2.19 billion (+8.4% Y/Y) in its fourth quarter. It issued a bullish 2024 outlook of revenue growth in the 6% to 7% range.
Nu Holdings (NU) reported revenue of $2.4 billion. This is up by 57% Y/Y. Nu Holdings has strong potential growth in the Mexican market. Expect the firm to increase customer account activations in 2024.
In the drug sector, the downtrend in Moderna (MRNA) is over. Moderna reported a surprise profit of $217 million, or 55 cents a share. Analysts incorrectly thought the vaccine maker would post a 97-cent share loss. Moderna deferred $600 million in revenue from the international vaccine group, Gavi. It expects to save $300 million related to cost-saving activities related to manufacturing output adjustments.
Unlike buying MRNA stock, investors in the drug manufacturing sector should avoid firms like Gilead Sciences (GILD) and Pfizer (PFE). Both firms need time to re-accelerate revenue growth.
