What Happened?
Shares of cross-border payment platform Payoneer (NASDAQ: PAYO) fell 4.3% in the afternoon session after Benchmark lowered its price target on the stock, citing macroeconomic uncertainty. The financial services firm cut its price target on Payoneer to $10 from $12. The adjustment was linked to headwinds that faced the company's small and medium-sized business customers as they struggled to adapt to changing U.S. tariff policies. Despite the lower price target, Benchmark maintained its "Buy" rating on the company's shares.
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What Is The Market Telling Us
Payoneer’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 11.2% on the news that the company's third-quarter 2025 financial results revealed a significant drop in profitability that overshadowed its revenue growth. While revenue grew 9.1% year-over-year to $270.9 million, beating analysts' expectations, the company's profitability took a significant hit. GAAP earnings per share (EPS), a key measure of profit, came in at $0.04. This result was not only a steep decline from the $0.11 reported in the same quarter last year but also missed Wall Street's consensus estimate of $0.06. Although Payoneer’s full-year revenue guidance came in slightly ahead of expectations, this positive point was not enough to reassure investors, who focused on the sharp drop in earnings.
Payoneer is down 45.5% since the beginning of the year, and at $5.54 per share, it is trading 49.9% below its 52-week high of $11.04 from February 2025. Investors who bought $1,000 worth of Payoneer’s shares 5 years ago would now be looking at an investment worth $538.95.
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