Why Nuvei Stock Climbed 10% Last Week

Nuvei (TSX:NVEI)(NASDAQ:NVEI) stock grew 10% last week before falling back slightly on news of a new partnership to access more cryptocurrency trading.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 4, 2022 12:30 pm EDT

Nuvei (TSX: NVEI)(NASDAQ: NVEI) shares climbed 10% last week before ending the week up 7%, as the company made a partnership announcement.

What happened?

It may not have been the largest announcement in the world, but shares of Nuvei stock shot up 10% in the last week from a new partnership. The tech company announced on Mar. 30 it would create a partnership to start onboarding new users with XT.COM.

XT.COM is “one of the leading global cryptocurrency exchanges,” according to the company’s news release. The goal will be to make it easier for users to open accounts and access payment methods. This includes bank transfers, Apple Pay, and over a hundred cryptocurrency assets.

So what?

XT.COM has over 300,000 active users per month and over 30 million users in total, the statement says. This would add them directly to the Nuvei stock platform. Furthermore, it gives Nuvei stock more access to the cryptocurrency market, of which it continues to attempt being a major player.

Furthermore, the partnership expands Nuvei stock across Asia, North America, and Europe. Nuvei hasn’t been shy about stating how it plans on expanding on a global scale. And frankly, this is a necessity if the company hopes to compete with other payment platforms in the cryptocurrency industry.

Bu Nuvei stock still has the stink of a short-seller report on it. Back in December 2021, the company lost much of its value and even today trades at half of all-time highs. The company looks overvalued, trading at 97 times earnings.

Now what?

Nuvei stock seems to still have a lot to prove if it’s going to get investors back on board. Even with this new deal. While it’s certainly positive news, it’s going to need a lot more financial growth to convince shareholders to come back.

That being said, Nuvei has certainly chosen two burgeoning industries with cryptocurrency and e-commerce. As a payment platform, it can be implemented into pretty much any company’s e-commerce space. And if it offers a seamless way to introduce cryptocurrency, then it should continue to grow at a steady pace.

But that’s a lot of “could.” So, for investors wanting a sure thing, I don’t think Nuvei stock is the one to buy today. However, keep an eye on it, because you never know when the next deal could be the one that shoots this stock skyward.

Shares of Nuvei stock were up 2% on Monday and 19% year to date. It currently has a consensus target price of $116 per share.