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Daily Tearsheet: US fintech lenders’s stock get pummeled, Block misses estimates, fintech layoffs ramp

  • Block missed estimates yet remains Wall Street's favorite fintech stock.
  • Fintech lenders are continuing to feel the squeeze.
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Daily Tearsheet: US fintech lenders’s stock get pummeled, Block misses estimates, fintech layoffs ramp

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Data Snack: US fintech lenders down 30% on average in Q1 2022

Macroeconomic trends loom over the fintech sector and pressure public market stocks – most fintech lenders are down 30% or more in the first three months of 2022.

This could be a reaction against higher interest rates, which can grow the risk of defaults – driving investors to reevaluate fintech valuations, especially those with aggressive growth strategies.

Read more


Just look at the charts

1. Ratio between paid/organic fintech app downloads

SourceAdjust

2. The future of partnerships

SourceFin_X_Tech

Today’s stories

Block got clocked
The parent company behind Square missed Q1 estimates. The stock was down 10% during the day and rallied up after the market closed. Despite now trading at 76 times estimated earnings, Block stock is Wall Street’s favorite fintech (CoinDesk)

US Treasury commands on-demand wage access
The US Treasury is clarifying tax issues regarding EWA (they won’t be treated like loans, for example). This could pave the way for increased roll-out of earned wage access products (PYMNTS)

New revenue-based green finance lender
Enduring Planet offers revenue-based financing to startups and SMBs that focus on climate (TechCrunch)

Mainstreet employees hit the street
Despite being valued at $500 million last year, MainStreet is laying off 30% of its staff. The company that helps other startups uncover tax credits said the market is ‘incredibly rough’ right now (TechCrunch)

Stay ahead of the game with Outlier — Tearsheet’s exclusive members-only content program and join the leading financial services and fintech innovators reading us every day.

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