What Happened?
Shares of cross-border payment platform Payoneer (NASDAQ: PAYO) fell 11.2% in the morning session after 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.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Payoneer? Access our full analysis report here.
What Is The Market Telling Us
Payoneer’s shares are very volatile and have had 20 moves greater than 5% over the last year. But moves this big are rare even for Payoneer and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 5.7% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Payoneer is down 48.7% since the beginning of the year, and at $5.21 per share, it is trading 52.9% below its 52-week high of $11.05 from November 2024. Investors who bought $1,000 worth of Payoneer’s shares 5 years ago would now be looking at an investment worth $539.34.
The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.
