FinTechIPO™ Index Rallies into Close of Tumultuous Week

The FinTech IPO Tracker continues to underperform the broader indices, as measured year-to-date – a downtrend only recently interrupted, briefly, amid a broad-based rally in tech stocks.

To get a sense of the bump: The index reached an all-time nadir of about 57 this week and closed most recently at a bit above 59 as of the 16h of March.

Source: PYMNTS

That “step-up” came as every single one of the 44 names that we track surged in Wednesday’s trading action, with at least one macro underpinning: the Fed raised rates for the first time since 2018.  Wall Street seemed to breathe a sigh of relief, bid stocks up and prepare to move on.

Earnings Results Continue

DLocal surged 27% in the wake of earnings results, where earlier this week, the company reported earnings that detailed a 145% gain in total payments volume to $1.9 billion in the most recent quarter. Those gains outpaced top line growth of 120% to $76.3 million.  Revenues in Latin America increased by more than 140%, the company said, also noting that revenues from new merchants overall in the quarter came to $7.7 million, compared to $6.1 million for the same metric in the year-ago fourth quarter.

Separately, Lufax Holding, which reported its own results earlier in the month, rocketed up by more than 38% late this week, right alongside the huge gains seen in Chinese stocks overall after a downdraft that marked earlier sessions in the week.  As has been widely reported, Chinese stocks trading both here and abroad rallied strongly on the heels of announcements, through state-run media, that regulators will work to ensure equities remain listed in the states and that regulations surrounding tech companies in general will remain “transparent.”

Despite these upward bumps, the downtrend still remains in place. Names like Alkami Tech and OneConnect are still down double-digit percentage points for the week, off a respective 11.7% and 10.3%.  Many of these names are still seeing their shares being sold off in the wake of earnings reports that came weeks ago at the height of earnings season.

Robinhood, which has had the worst weekly showing within the FinTech tracker, has seen shares dip by more than 20% through that period.  The company, as noted in this space, is forging ahead with its plan to allow users to loan out their stocks to other financial institutions — and it’s a move that will help the firm compete with more conventional brokerages.

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