According to Bloomberg, Point72 Asset Management and ExodusPoint Capital Management disclosed equity stakes in crypto payments firm Alt5 Sigma on Monday. Point72 holds a 4% stake worth approximately $26.7 million, while ExodusPoint’s master fund previously held over 5% and currently holds 4.75%, valued at around $32.1 million. https://t.co/v5VZSXEm9l ...

Core Viewpoint - DLocal Limited has experienced a significant surge in its stock price following a strong earnings report, indicating a potential shift in market sentiment towards the company's growth prospects and operational efficiency [2][12]. Financial Performance - Total Payment Volume (TPV) reached a record $9.2 billion, reflecting a 53% year-over-year increase and a 14% sequential growth, marking the third consecutive quarter of over 50% growth [2]. - Revenue for the quarter was $256.5 million, exceeding estimates of $229.7 million, representing a 50% year-over-year growth and an 18% increase from the previous quarter, with constant currency revenue growth at 63% [3]. - Adjusted EBITDA was $70.1 million, surpassing expectations of $55.8 million, up 64% from the previous year, with margins steady at over 27% [4]. - Free cash flow increased by 156% year-over-year to $48 million, demonstrating strong cash generation even amid ongoing investments [4]. - Operating expenses grew only 9% year-over-year, significantly lower than revenue growth, indicating effective cost management and operational leverage [5]. Guidance and Market Sentiment - Management raised full-year guidance, now projecting revenue of approximately $1.01 billion and adjusted EBITDA of $274 million, reinforcing confidence in sustained growth momentum [7]. - The company has improved its communication and execution under CEO Pedro Arnt, which has positively influenced investor perception [8]. Growth Drivers and Competitive Positioning - DLocal's growth is supported by three structural tailwinds: a large addressable market in underpenetrated digital payments, increased share-of-wallet with existing merchants, and early-stage adoption by new clients [9]. - The company differentiates itself by innovating local payment infrastructure in emerging markets, serving global companies in regions with low digital penetration while maintaining high margins [10]. Analyst Attention and Stock Outlook - Following the strong quarterly results, HSBC upgraded DLocal's stock from Hold to Buy, raising its price target from $11.50 to $15, citing cost discipline and improved capital efficiency as key factors [11]. - The recent stock rally of 43% raises questions about whether the optimism has already been priced in or if further revaluation is possible for this payments leader [13].

Core Insights - Mastercard and Worldpay have partnered to enhance money movement in the UAE through Mastercard Move, facilitating quick domestic and international card-based payouts for various use cases [2][10] - The collaboration with UAE-based fintech Zand aims to provide secure international money transfer services, further promoting digital transactions in the region [4][5] - Mastercard Move is designed to improve cross-border payment capabilities, covering over 200 countries and supporting more than 150 currencies, reaching over 95% of the banked population globally [5] Company Performance - Mastercard's cross-border volumes are projected to increase, having already advanced 15% in local currency terms in Q2 2025 [6] - The company's stock has appreciated by 24.5% over the past year, outperforming the industry average growth of 19.3% [9] - The Zacks Consensus Estimate indicates an 11.7% rise in Mastercard's earnings for 2025 compared to the previous year, with revenue growth expected at 15.1% year-over-year [12] Competitive Landscape - Competitors in the UAE include PayPal and Visa, with PayPal's cross-border total payment volume growing by 10% year-over-year in Q2 2025 [7] - Visa reported a 12% year-over-year improvement in cross-border volume in Q3 of fiscal 2025, highlighting the competitive dynamics in the payment processing sector [8] Valuation Metrics - Mastercard trades at a forward price-to-earnings ratio of 32.44, which is above the industry average of 21.61 [11]

Core Viewpoint - Affirm Holdings, Inc. (AFRM) is experiencing strong market interest, but its valuation metrics, particularly the forward price-to-sales (P/S) ratio of 6.26X, raise concerns about sustainability compared to historical and industry averages [1][2][4] Financial Performance - Affirm's free cash flow increased by 109.3% year-over-year to $609 million, indicating strong cash generation [4][7] - The P/FCF ratio stands at 44.25X, significantly higher than the industry average of 28.86X, suggesting a premium valuation [4][8] - The company ended the fiscal third quarter with $1.4 billion in cash and cash equivalents, a 33.4% increase from the end of fiscal 2024 [8] Growth Drivers - 94% of transactions in Q3 were from repeat users, with transaction volumes rising 45.6% to 31.3 million [7][9] - Affirm is expanding its offerings into essential categories such as groceries and travel, partnering with major retailers like Costco [10] - The company is broadening its product ecosystem by investing in debit solutions and B2B tools, enhancing customer engagement [11] Market Expansion - Affirm's partnership with Shopify aims to launch operations in Europe, targeting markets like France, Germany, and the Netherlands [11] - The company is also entering the gaming sector through a collaboration with Xsolla, focusing on younger consumers [12] Earnings Outlook - The Zacks Consensus Estimate predicts a 103% year-over-year increase in fiscal 2025 earnings to 5 cents per share, with further growth expected in fiscal 2026 [13] - Revenue projections for fiscal 2025 and 2026 are anticipated to grow by 37.2% and 22.8%, respectively [13][14] Stock Performance - Affirm's shares have increased by 28.4% year-to-date, outperforming the industry average of 22.6% and competitors like PayPal and Block [15] Competitive Landscape - The BNPL market is highly competitive, with significant pressure from established players like PayPal and Block, as well as traditional financial institutions [17] - Affirm faces challenges in retaining large merchants, as evidenced by Walmart's switch from Affirm to Klarna [17] Cost Management - Operating expenses have been rising, with a 76.6% increase in fiscal 2022 and a 7.4% increase in the latest fiscal quarter, necessitating tighter cost discipline [18] Investment Considerations - While Affirm shows strong growth potential and cash flow generation, its high valuation and competitive pressures suggest a balanced risk/reward profile [19][20]

Group 1 - Royal Bank of Canada (RY) and Bank of Montreal (BMO) are considering the sale of their joint venture Moneris, potentially valuing the business at approximately $2 billion [1][8] - Moneris, established in 2000, is one of Canada's largest payment processors, handling about one-third of all business transactions in the country and generating around $700 million in annual revenues [2][8] - The decision to sell Moneris is not finalized, and RY and BMO may opt to retain part or all of the business [2] Group 2 - The North American payments industry has seen rapid digitization, prompting many banks to divest their payments operations, with buyers often being payments companies or private equity firms attracted to the recurring revenue [3] - Recent collaborations in the industry include Fiserv Inc. partnering with TD Bank Group to enhance TD's merchant business and acquiring part of TD's merchant processing operations in Canada [4] Group 3 - Year-to-date, shares of RY and BMO have increased by 13.2% and 16.5%, respectively, which is below the industry's growth of 35.2% [5] - Both RY and BMO currently hold a Zacks Rank of 3 (Hold) [6]

Group 1: Partnership Overview - Mastercard has launched a money movement partnership with Worldpay in the UAE to streamline money movement for consumers and businesses through Mastercard Move [2] - The collaboration will enable fast, seamless domestic and cross-border payouts to cards, including gig economy payouts, insurance claims, remittances, and crypto withdrawals, supported by Mastercard's security services [2][3] Group 2: Benefits for Consumers and Businesses - Consumers will experience faster access to funds, while businesses will benefit from more efficient disbursement capabilities without needing to share banking details [3] - Worldpay's merchants can leverage their acquiring flows to finance payouts, simplifying operations and reducing dependence on multiple providers [3] Group 3: Market Research Insights - Research indicates that most consumers in the UAE desire seamless connections between their shopping journeys across physical and digital channels [4] - 53% of UAE shoppers have used or want to use cross-channel shopping features at their preferred merchants, with over two-thirds completing online purchases via mobile phones [5] Group 4: SMB Growth Strategies - A report highlighted that 91% of small- to medium-sized businesses (SMBs) view software capabilities as crucial for growth strategies by 2025, with 65% willing to switch vendors [6] - The absence of embedded financial services like payments, lending, and banking is a significant factor influencing vendor retention among SMBs [7]

Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][9] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments, transforming everyday transactions [3] - The industry is diversifying with contactless payment options such as mobile wallets, biometrics, and QR codes, enhancing the global digital payments market [4] Company Insights - **PayPal Holdings Inc. (PYPL)**: - Benefiting from robust growth in total payment volume and strengthening customer engagement [10][11] - Expected revenue and earnings growth rates of 4% and 12% respectively for the current year [12] - **JPMorgan Chase & Co. (JPM)**: - Projected net interest income (NII) growth at a CAGR of 2.9% by 2027, supported by business expansion and loan demand [13] - Expected revenue and earnings growth rates of -0.2% and -1.3% respectively for the current year [15] - **Intuit Inc. (INTU)**: - Strong momentum in Online Services revenues driven by Mailchimp, payroll, and Money [16] - Expected revenue and earnings growth rates of 11.7% and 13.7% respectively for the current year [19] - **ACI Worldwide Inc. (ACIW)**: - Powers electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [21][22] - Expected revenue and earnings growth rates of 8% and 7.6% respectively for the current year [22] - **Remitly Global Inc. (RELY)**: - Engaged in providing digital financial services, with an expected revenue growth rate of 27.9% and earnings growth of over 100% for the current year [23][24]

Core Insights - Shimmick Corporation reported a quarterly loss of $0.14 per share, which was better than the Zacks Consensus Estimate of a loss of $0.16, marking an earnings surprise of +12.50% [1] - The company generated revenues of $128.4 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.03% and showing significant growth from $90.61 million a year ago [2] - The stock has underperformed, losing about 15.4% since the beginning of the year, while the S&P 500 has gained 10% [3] Financial Performance - Over the last four quarters, Shimmick Corporation has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $132.8 million, while for the current fiscal year, the estimate is -$0.25 on revenues of $491 million [7] Industry Context - Shimmick Corporation operates within the Waste Removal Services industry, which is currently ranked in the bottom 24% of over 250 Zacks industries [8] - The performance of the stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - Fiserv, Inc. has experienced a significant stock decline of 41.8% over the past six months, contrasting with a 6.4% decline in the industry and a 5.4% rise in the Zacks S&P 500 Composite [1] Company Performance - Fiserv shares have dropped 18.3% in the past month, while its peers Sezzle and Mastercard have seen declines of 30.9% and an increase of 5%, respectively [4] - The company has a strong liquidity position, with a current ratio of 1.09 in Q2 2025, slightly above the previous year's 1.06 and close to the industry average of 1.15 [10] Growth Opportunities - Fiserv is launching the FIUSD stablecoin in partnership with PayPal, aiming to capitalize on the rapidly growing stablecoin market, which is expected to reach a daily transaction volume of at least $250 billion in the next three years [5][6] - The company anticipates a 9.2% year-over-year sales increase to $20.9 billion in 2025, with earnings per share (EPS) expected to rise by 16.3% to $10.23 [8][12] Profitability Metrics - Fiserv's return on equity (ROE) stands at 19.7%, which is significantly lower than the industry average of 48.6% [13][15] - Despite a strong standalone ROE, the company's performance relative to competitors like Sezzle and Mastercard, which have ROEs of 58.2% and 40.3%, respectively, may deter investors [15] Competitive Landscape - The merchant segment, which Fiserv aims to grow, faces intense competition from rivals such as FIS and Global Payments, as well as emerging startups [16] - Macroeconomic factors, including a 3.1% year-over-year inflation increase in July, may negatively impact consumer spending and, consequently, Fiserv's transaction volumes [17] Strategic Positioning - The introduction of the GENIUS Act provides a clearer regulatory framework for stablecoins, potentially leading to long-term revenue streams in areas like cross-border payments and treasury management [9] - Fiserv's strategy to provide a bank-friendly stablecoin solution positions it as an innovator in the financial technology space, allowing traditional institutions to adopt blockchain technology with reduced risk [7]

Core Points - CoreCard Corporation reported total revenues of $17.6 million for the quarter ended June 30, 2025, an increase from $13.8 million in the same period in 2024, representing a growth of approximately 27.5% [2] - The company achieved net income of $2.0 million for the second quarter, compared to $0.9 million in the prior year, marking a year-over-year increase of approximately 122.2% [3] - Earnings per diluted share rose to $0.24 for the second quarter of 2025, up from $0.11 in the same quarter of 2024 [3] - Adjusted EBITDA for the second quarter was $4.2 million, compared to $2.5 million in the prior year, reflecting a growth of 68% [4] - CoreCard entered into a merger agreement with Euronet Worldwide, Inc. on July 30, 2025, which is expected to close in late 2025, subject to shareholder approval and customary closing conditions [5][6] Financial Performance - Total revenues for the three months ended June 30, 2025, were $17.6 million, with professional services contributing $9.4 million, processing and maintenance $6.6 million, and third-party revenues $1.6 million [2] - Income from operations was $2.7 million for the second quarter, compared to $1.1 million in the same quarter of the previous year [2] - The company reported adjusted earnings per diluted share of $0.31 for the second quarter, up from $0.15 in the prior year [3][29] Balance Sheet Highlights - As of June 30, 2025, total assets were $70.9 million, an increase from $62.3 million at the end of 2024 [20][22] - Current assets increased to $45.8 million from $40.2 million at the end of 2024, with cash rising to $26.6 million from $19.5 million [20] - Total stockholders' equity was $56.3 million as of June 30, 2025, compared to $51.7 million at the end of 2024 [22] Non-GAAP Measures - Adjusted EBITDA margin for the second quarter was 23.8%, compared to 17.9% in the same quarter of the previous year [29] - The reconciliation of GAAP to non-GAAP measures showed adjusted net income of $2.5 million for the second quarter, compared to $1.2 million in the prior year [28]