Nuvei (TSX:TSX:NVEI)(NASDAQ:NVEI) stock jumped nearly 30% last week. The rise in price was due to Nuvei announcing on March 16 a partnership with Ledger to improve cryptocurrency security.
What happened? The payment technology rose 10% Wednesday after announcing it has teamed up with Ledger, which develops security and infrastructure solutions for cryptocurrencies.
The new partnership will allow more than 125 cryptocurrencies on the platform, with all major fiat funding options through Nuvei’s Simplex solution. Through the Ledger Live platform, users can buy cryptocurrencies with Visa (NYSE:V), Mastercard (NYSE:MA), SEPA, SWIFT and over 100 other fiat funding options for various global currencies.
With the app, users have a simplified interface that allows them to securely interact with their hardware wallet. It provides a payment solution for Ledger users without going through external exchanges and fiat cryptocurrency payment gateways. From Ledger Live, it is possible to stake assets to verify transactions and earn passive income, use DeFi platforms, manage NFTs and buy cryptocurrencies.
Nuvei chairman and CEO Philip Fayer said, “We’re excited to partner with Ledger to let more and more users easily acquire crypto with maximum security. With the number of possible verified uses of crypto in the ecosystem ever-increasing, having easy on-ramps within the wallet is key for the continued growth of the sector.”
The recent rally in Nuvei stock was much needed after what happened last year. Indeed, shares of the company fell after a short-selling report. Nuvei stock has also been impacted by the pandemic, supply chain demands, a bear market, and the war in Ukraine.
Still, Nuvei continues to seize the opportunity surrounding cryptocurrencies. This area has seen some growth recently, especially with the executive order signed by U.S. president Joe Biden last week. And it comes at a time when merchants are trying to figure out how cryptocurrency might fit into their payment options.
By using Nuvei and its payment options, businesses can now enjoy seamless integration of cryptocurrency usage. And it’s impeccable timing, as more and more people embrace the practice of using crypto.
Strong Q4 results Even during this poor economic trend, Nuvei posted a strong performance in the fourth quarter. The company beat its own financial outlook, with revenue up 83% year over year.
The company also saw significant growth in a number of markets, including a 93% year-over-year increase in regulated online gaming ($180.8 million, 25% of the revenue mix of company), 504% year-over-year growth in social gaming ($52.1 million, 7.2% of company revenue), and annual growth of more than 1,600 % of digital assets and cryptocurrencies ($80.5 million, 11.1% of company revenue).
Supported by improved global payment capabilities, total volumes increased 127% to $31.5 billion for the quarter.
The company is focused on developing innovative products and acquiring new customers to drive growth. Given the favourable environment and its growth initiatives, Nuvei’s management expects its revenues to increase by 30-35% this year.
Nuvei stock has strong upside On March 15, National Bank of Canada (TSX:NA) analyst Richard Tse kept his “outperform” rating on Nuvei stock and target price of US$130/share for an estimated one-year return of 162.4%.
The analyst said, “We continue to believe Nuvei is at the forefront of a payments market that continues to undergo a meaningful transformation.”
The post Why Nuvei Stock Rose 28.6% Last Week appeared first on The Motley Fool Canada.
The Motley Fool owns and recommends Nuvei Corporation. The Motley Fool recommends Mastercard and Visa. Fool contributor Stephanie Bedard-Chateauneuf owns shares of Nuvei Corporation.