As the value of its shares plummeted by more than 60 percent on Friday, Green Dot Corp. lost more than half a billion dollars from its market cap in just one day of trading.
The stock had been hovering around the $23 price point for four out of five days last week — until Friday, when that price plummeted to roughly $9.
The trouble began on Thursday evening, when Green Dot revealed that it had missed investor expectations with both its per share earnings and its revenues. The company also lowered its guidance for the 2012 fiscal year, leading to downgrades from analysts at Wedbush, Jefferies, and Sterne Agee, Seeking Alpha noted.
Deutsche Bank and JP Morgan each issued downgrades of their own later on Friday, with Deutsche Bank referring to Green Dot’s business model as having “broken down.”
Green Dot’s struggles may have impacted shares of NetSpend Holdings Inc. stock as well; after closing above $9 a share on Thursday, NetSpend opened just above $7 on Friday. The company would gain most of those losses back, but still ended the week down more than six percent after four days of no significant change to its price.
Western Union (+6.6%) and Euronet Worldwide (+7.2%) were among the week’s biggest gainers; both companies issued updated financials last week as well.
USA Technologies was the week’s strongest performer, up more than 10 percent over five days of trading.
Results from July 16:
| All Payments | Bank Payment | Network | Acquirer/ Processor |
POS Equipment/ Software |
Prepaid Issuer | Remittance | |
| Closing | 123.33 | 101.10 | 165.91 | 124.84 | 117.36 | 55.83 | 89.15 |
| Weekly Gain (#) | -0.19 | 0.81 | -2.52 | -0.66 | 4.00 | 0.71 | -0.67 |
| Weekly Gain (%) | -0.15% | 0.81% | -1.49% | -0.52% | 3.53% | 1.29% | -0.74% |
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