Earnings is coming out tomorrow morning.
Will Fiserv stock utterly collapse another 50%, like it did last October?
Or maybe it just utterly, utterly collapses to single digit stock price?
It has disappointed “the Street” 5 times in a row — is another massive disappointment ready to be revealed?
My guess is the stock collapses to a four handle. Maybe $48/share or something of that flavor. Give it your guess?
Any company that is investing too much into AI is getting ki-led on its stock price. That includes megacaps like Amazon and Oracle. I have not heard or seen anything from this leadership on new products or significant investments in existing products. The only Hail Mary seems to be AI! If they continue to spend every penny on AI efforts and have nothing to show for it then it’s game over.
Regardless of what everyone who wants to be negative out of spite has to say, Fiserv and likely other stocks in the sector will get a bump once money rolls out of other sectors and back into fintech. We had a historic drop, one that doesn't typically happen, but all that's done is set market makers up with a better opportunity, since the risk for fiserv is so much lower than other massive companies. We will likely hit our numbers tomorrow, whether the MMs want to rotate some cash flow back into us or not is up to whatever the hedge funds decide. Just check out tech. Their PE ratios are psychotic. They can post -100% revenue but will only drop 5pts because they're in the S&P or have a deal with some company in the S&P. It's all a game
Long term it will likely implode, resulting in a buyout.