The European fintech shares have plunged to new lows amid economic slowdown concerns. Cab payments share price has also taken a massive hit from the bearish sentiment in the fintech sector. The shares of the British payment processor have plummeted 84% below their IPO price.
The benchmark of the UK equities, FTSE 100 index is also exhibiting a lot of weakness lately. This has aggravated the sell-off in the Cab Payments shares which extended their loss by another 12% on Wednesday. At press time, the stock of the forex firm was changing hands at the lowest level in its history.
The shares of the company which was listed on the London bourse just 3 months ago took a 72% nosedive in its biggest losing day. It all started when the European fintech giant, Worldlinks reported a Q3 revenue far lower than the market expectations. This resulted in a market wide panic as the investors got rid of the European fintech stocks.
According to Worldlinks, the economic downturn in Germany and other major markets is the primary reason behind the bearish outlook. Furthermore, the French firm has also off-boarded many merchants due to increased cases of fraud.
These developments have turned Cab Payments share price extremely bearish which was already facing headwinds.
The stock of Cab Payments Holdings plc has been in a downward spiral since its debut on the stock exchange. Since then, the price has constantly made lower highs and lower lows and has never re-visited the IPO price of 335p.
While the current valuations may appear to be attractive, there could still be more downside for the Cab Payment share price. Buying this stock right now could be like catching a falling knife. Therefore, a better approach is to let the price action develop for a clearer picture. However, a relief bounce can be expected anytime now as the daily RSI has hit 10.38.
This post was last modified on Oct 25, 2023, 15:27 BST 15:27