Paysafe Ltd (NYSE:PSFE) Stock Slumps 50% in a Month: Now What?

The payments industry may have grown at a remarkable pace over the course of the past decade or so and in recent years, Paysafe Ltd (NYSE:PSFE) has emerged as a major player in the online payments space.

Market Stats

On Monday, PSFE stock went up 2.05% at $3.98 with more than 23.26 million, compared to its average volume of 13.43 million shares. The stock has moved within a range of $3.6900 – 4.0900 after opening trading at $3.90.

Key Analysis

However, over the course of the past month, the Paysafe stock has been one of the worst performers in the sector and has clocked declines of as much as 50% during the period. While there has been no news about the company in recent days, it might be a good time to take a closer look at the company nonetheless and get a better idea.

The company had gone public earlier on this year in March by way of a SPAC (special purpose acquisition company) merger with Foley Trasimene Acquisition Corp II.

However, instead of getting a boost through this merger, it ended up being the beginning of the troubles for the Paysafe stock. It should be noted that after the frenzy in SPAC mergers earlier on in the year, the interest had somewhat dimmed at some point in March and that affected the Paysafe stock considerable. The end of the SPAC enthusiasm and the burst of the bubble are the main reasons behind the poor performance.

Traders Corner

PSFE stock is trading below the 20-Day and 50-Day Moving averages of $5.75 and $7.16 respectively. Moreover, the stock is trading below the 200-Day moving average of $11.09. The stock is down 50% in the past month.