Core Insights - The investment strategy focuses on acquiring strong businesses at undervalued prices, emphasizing the importance of quality and economic fundamentals [1] Investment Focus - The company has diversified its portfolio across various industries, including telecom, banking, payments, and technology, with a current emphasis on high-quality businesses [1] - There is a particular interest in big tech companies that have extensive user bases and content libraries, highlighting the potential for cross-selling opportunities [1] Valuation Approach - The preferred valuation method is at the EBIT plus R&D level, reflecting a belief in the potential of certain R&D investments [1] Performance Metrics - The annual return from February 2019 to October 2024 is reported at 11.4% CAGR, which is below the market's 15.18% CAGR, indicating a need for improved performance [1] - The investment philosophy aims to minimize portfolio turnover, suggesting that most profits will come from holding existing investments rather than frequent trading [1] Investment Philosophy - The company does not endorse traditional "Buy" and "Sell" recommendations, instead advocating for a "Strong Buy" threshold for exceptional businesses, with everything else categorized as "Strong Sell" to free up capital for new opportunities [1] - A "Hold" position may be initiated for high-quality businesses if their pricing is not favorable [1]

Core Insights - Fiserv, Inc. is recognized as one of the 12 best fintech stocks to buy according to analysts, with TD Cowen reaffirming a Buy rating and a price target of $188 [1][2] - The positive outlook follows Fiserv's Forum 2025 event, which highlighted the company's innovation and unification strategies aimed at enhancing growth [1][2] - TD Cowen expresses increased confidence in Fiserv's medium-term position, emphasizing the company's diverse product offerings and improved integration between its Financial Services and Merchant Solutions segments [2][3] Company Overview - Fiserv, Inc. is a global financial technology and payments company that provides solutions for banking, merchant acquiring, global commerce, billing and payments, and point-of-sale [3] - The Clover payment processing system and the Financial Services segment are noted as key components supporting Fiserv's growth momentum [3]

Core Viewpoint - Remitly Global, Inc. (NASDAQ:RELY) is recognized as one of the best fintech stocks to buy, with a reaffirmed Market Outperform rating and a price target of $23 by Citizens JMP, highlighting its strong growth potential in the fintech sector [1][2]. Group 1: Company Overview - Remitly Global, Inc. is a financial technology and payments company that offers digital financial services through its cross-border payments app, facilitating money transfers in over 170 countries [2]. - The price target of $23 represents approximately 15 times the estimated adjusted EBITDA for Remitly in 2026, indicating strong future earnings potential [2]. Group 2: Market Position - Citizens JMP views Remitly as one of the strongest secular growth vehicles in the fintech industry, noting that its business has grown more quickly and profitably than many had anticipated [1].

Core Insights - The payments industry is undergoing a significant transformation, with traditional credit card companies like Visa facing competition from digital-first players such as Affirm, which offer flexible and often interest-free financing options [1][2][3] Visa Overview - Visa operates in over 200 countries and is expected to process more than 257 billion transactions by fiscal 2025, showcasing its unmatched scale and profitability [4] - In the last reported quarter, Visa's net revenues increased by 14.3% year over year to $10.2 billion, driven by strong consumer spending and cross-border transaction growth [5] - Visa's operating income rose 14.9% to $6.9 billion, maintaining a margin close to 68% [5] - The company's long-term debt-to-capital ratio stands at 33.6%, indicating strong financial health compared to Affirm's 71.8% [6] - Visa is investing in new technologies such as tokenization, real-time payments, and blockchain to adapt to the evolving payments landscape [9] Affirm Overview - Affirm's gross merchandise volume (GMV) surged 43% year over year to $10.4 billion, with active consumers increasing by 24% to 23 million and a repeat transaction rate of 95% [12][14] - The company has established a robust merchant network with over 377,000 partners, enhancing its visibility and consumer engagement [14] - Affirm's data-driven underwriting model, powered by AI, has helped reduce delinquency rates while expanding its customer base [15] - The company's fiscal 2026 earnings estimate is projected at 85 cents per share, reflecting a remarkable 466.7% year-over-year increase, with revenues expected to rise by 23.8% [19] Market Positioning - Visa's growth is expected to slow in mature markets, while Affirm is positioned to capture the growing demand for flexible payment options among younger consumers [7][10] - Visa's stock trades below its average analyst price target, suggesting a potential upside of 15.2%, while Affirm's stock has a higher growth potential with a 30.7% upside [10] - On a price-to-sales basis, Visa's multiple is significantly higher at 13.86X compared to Affirm's 5.29X, indicating room for growth for Affirm as it expands [20] Performance Comparison - Over the past year, Visa has returned 15.4%, while Affirm has delivered a remarkable 55.1% return, reflecting the growing traction of BNPL services [22] - The S&P 500 gained 16.2% during the same period, highlighting the competitive performance of both companies in the market [22] Conclusion - Visa remains a dominant player in the financial sector, but the shift towards BNPL models positions Affirm for significant growth [24][25] - Investors may find Affirm's business model and growth trajectory more appealing as the payments landscape evolves [25]

Core Viewpoint - DLocal's stock has seen a significant increase due to an upgrade from Goldman Sachs, which raised its price target from $12 to $19, indicating strong growth potential in the emerging markets payments sector [1][7]. Company Overview - DLocal connects 758 enterprise merchants to over 2 billion potential customers in emerging markets across Latin America, Africa, and Asia, working with major clients like Amazon, Shopify, Spotify, Uber, and Netflix [3]. - The company has experienced substantial growth, with total payment volume increasing by 53% in the latest quarter [3]. Market Potential - The digital payments industry in emerging markets is expected to double from $2.1 trillion to $4.2 trillion by 2030, providing a strong growth tailwind for DLocal [4]. Financial Performance - DLocal's stock has already risen 76% in the last six months, and the company's revenue is growing at a rate of 50% [2][7]. - The company's take rate, which had temporarily suffered due to competitive offers, has shown signs of improvement in the last quarter [5][6]. Valuation - DLocal is currently trading at 22 times forward earnings, which is considered attractive given its revenue growth rate of 50% [8].

Core Insights - Flywire Corporation will release its third-quarter financial results on November 4, 2025, after market close [1] - A conference call to discuss these results will be held at 5:00 pm ET on the same day, hosted by key executives [1] Company Overview - Flywire is a global payments enablement and software company that combines a proprietary global payments network with a next-generation payments platform and vertical-specific software [3] - The company focuses on integrating its software and payments technology into existing accounts receivable workflows across various sectors, including education, healthcare, travel, and key B2B industries [4] - Flywire supports over 4,800 clients, offering diverse payment methods in more than 140 currencies across over 240 countries and territories [5]

Core Insights - RocketFuel Payments, Inc. has launched an updated Crypto Invoicing Solution that allows businesses to receive payments in stablecoins, cryptocurrencies, and fiat currencies, with automatic exchange and settlement in the preferred currency [1][2]. Company Overview - The new invoicing solution enables businesses to add crypto payment instructions to invoices, accepting payments in popular stablecoins like USDC and USDT, as well as cryptocurrencies such as Bitcoin, Ethereum, and XRP [2]. - Funds received are instantly converted into stablecoins or local fiat currency, mitigating volatility risk, and are settled within 24 hours to the customer's local bank account [2][4]. Industry Context - The solution addresses challenges businesses face in receiving timely and reliable payments, particularly in cross-border transactions, as stablecoins gain traction [3]. - The invoicing solution enhances RocketFuel's position as a comprehensive crypto payments provider, creating additional revenue streams and cross-sell opportunities for merchants [3]. Key Features and Benefits - The solution allows for faster collections available 24/7 and reliable settlements within minutes of payment [4]. - It eliminates dependency on banks and reduces friction with automated reconciliation and reporting tools [4]. - The solution supports multi-currency invoices, providing global reach and treasury control with options to hold, convert, or withdraw in preferred currencies [4].

Core Insights - PayPal (PYPL) stock has decreased by 12.8% over the past 5 trading days, and historical data suggests it struggles to recover within a year after significant drops [2][3] - The company operates a technology platform facilitating digital payments in approximately 200 markets and 100 currencies globally [4] - PayPal is valued at $64 billion with $32 billion in revenue, currently trading at $66.05, and has shown a revenue growth of 4.1% over the last 12 months [5] Financial Metrics - Operating margin stands at 19.1%, with a Debt to Equity ratio of 0.18 and a Cash to Assets ratio of 0.13 [5] - The stock is trading at a P/E multiple of 13.7 and a P/EBIT multiple of 10.2 [5] - The stock has experienced a median return of -33.8% within a year after sharp declines since 2010 [5] Historical Performance - PYPL stock has dropped 83.7% from a peak of $308.53 on July 23, 2021, to $50.39 on October 27, 2023, compared to a peak-to-trough decline of 25.4% for the S&P 500 [6] - The highest price reached since the decline was $91.81 on January 20, 2025, with the current trading price at $66.05 [6] - Previous declines include a 31.2% drop from $123.91 on February 19, 2020, to $85.26 on March 23, 2020, with a full recovery by May 5, 2020 [8]

Core Viewpoint - The payment industry is undergoing accelerated consolidation due to strict regulations and intense competition, with the People's Bank of China recently announcing the cancellation of the payment license for Fujian Yikatong Payment Co., marking the 11th license cancellation this year [1][5]. Group 1: License Cancellations - Fujian Yikatong was established in July 2010 and received its payment business license in June 2012, focusing on prepaid card issuance and acceptance in Fujian [5]. - Since the first batch of third-party payment licenses was issued in May 2011, a total of 271 licenses have been granted, with 107 licenses currently canceled, leaving 164 active licenses [5]. - The majority of canceled licenses are for prepaid cards, indicating a natural market selection process where outdated licenses are phased out [6]. Group 2: Reasons for License Reduction - Analysts attribute the reduction in payment licenses to three main factors: enhanced regulatory oversight, financial difficulties or serious violations among some payment institutions, and internal consolidation within payment companies [6]. - The market is expected to see a "Matthew Effect," where a few major players dominate the market, leaving little room for smaller firms [6]. Group 3: Regulatory Penalties - Several payment institutions have recently faced significant fines for violations related to prepaid card management, account management, and settlement management [9]. - The total number of penalties disclosed this year has reached at least 74, with a total amount of 190 million yuan, indicating an increase in the number of institutions penalized compared to the previous year [10]. - The dual penalty system, which holds both institutions and responsible individuals accountable, has become the norm, with fines for individuals reaching up to 500,000 yuan [10].

Core Insights - ACI Worldwide is a leading provider of electronic payment solutions, known for its robust payment processing systems and strong presence in the global payments industry [1] - The recent partnership with BitPay aims to integrate cryptocurrency and stablecoin payments into ACI's existing solutions, potentially enhancing its market position and stock performance [2][5] - ACI reported earnings per share of $0.44, exceeding estimates, while revenue of approximately $18.92 billion fell short of expectations [3][6] - The current stock price of ACI is $19.29, with a market capitalization of approximately $10.6 billion, indicating significant market presence [4][6] Financial Performance - ACI's earnings per share of $0.44 surpassed the estimated $0.39, indicating strong operational performance [3][6] - Revenue reported at approximately $18.92 billion was below the expected $19.17 billion, highlighting a mixed financial performance [3] - The stock price has shown a slight increase of 0.39%, reflecting active investor interest with a trading volume of 4,004,583 shares [4][6] Market Position and Strategy - The partnership with BitPay positions ACI to capture new market opportunities by embracing digital currencies [5] - ACI's competitive edge in the payments industry is expected to be enhanced through the integration of cryptocurrency and stablecoin payments [2][5]