Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Why Nuvei’s Stock Price Crashed Over 50% Today

Stock MarketsDec 08, 2021 11:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Why Nuvei’s Stock Price Crashed Over 50% Today

What happened? The shares of Nuvei (TSX:NVEI crashed on Wednesday. At the time of writing, it was trading with about 53% losses for the day at $57.45 per share, touching its lowest level in over a year. As a result of this massive selloff today, NVEI stock — which was up 58% on a year-to-date basis until yesterday — is now down by 26% in 2021.

So what? Nuvei stock’s seemingly unpredictable massive losses today came after Spruce Point Capital — a New York-based short-seller — severely criticized the company in its latest report this morning. Here are some of the serious allegations that this short report on Nuvei stock highlighted on December 8 while terming the company as “a highly promoted payments processing technology company”:

  • Nuvei “has covered up a pattern of business failures.”
  • Its business lacks organic growth.
  • Spruce Point also claimed that NVEI has “a web of relationships with individuals connected to major Ponzi schemes.”
  • According to the short report, Nuvei’s business is declining organically in North America.
  • The report also raised questions about the educational credentials and career history of the company’s CEO Phil Fayer.

In its critical report on the Canadian payment services provider Nuvei, Spruce Point said that it sees a “40-60% downside risk” in its stock. This short report is one of the key reasons that hurt investors’ sentiments and drove today’s massive crash in NVEI stock.

Now what? Nuvei has been one of the most attractive tech stocks on the TSX since it went public slightly more than a year ago. Interestingly, its initial public offering was the largest from the tech sector in the history of the Toronto Stock Exchange.

We must not forget that Spruce Point Capital is the same short-seller that hit out at the Canadian e-commerce company Lightspeed Commerce (TSX:LSPD) on September 29, 2021, in a similar fashion. Its short report on Lightspeed also made some serious allegations on its management. This report is the reason why LSPD stock has tanked by nearly 57% since then.

Given the ongoing extreme volatility and panic selling in Nuvei stock, I wouldn’t consider buying the dip in Nuvei stock at the moment. Instead, I’d wait and watch for Nuvei’s response to this short report.

The post Why Nuvei’s Stock Price Crashed Over 50% Today appeared first on The Motley Fool Canada.

The Motley Fool owns shares of and recommends Nuvei Corporation. The Motley Fool recommends Lightspeed POS Inc. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

Why Nuvei’s Stock Price Crashed Over 50% Today
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Ed Head
Ed Head Dec 08, 2021 15:33
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Go VET Go!
Rahul Yadav
Rahul Yadav Dec 08, 2021 13:13
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Funny.... One day it is a buy, then hold and then sell. Looks like these article writers just go with the flow instead of research, analysis and reasoning
mike ruby
mike ruby Dec 08, 2021 12:24
Saved. See Saved Items.
This comment has already been saved in your Saved Items
unbelievable you recommend it a day earlier what a joke
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email