Shares of Shift4 Payments (FOUR) have risen moderately so far this year on investors’ optimism about the fintech industry’s prospects. However, its weak financials and premium valuation remain causes for concern. This, along with the risks associated with its business operations, could result in a price decline in the near term. So, let’s take a close look at FOUR.Payment processing company, Shift4 Payments, Inc. (FOUR), operates payment platforms that provide omni-channel card acceptance and processing solutions. FOUR’s stock has gained 6.2% year-to-date, driven by the company’s increased organizational capabilities, premium platform features and growing adoption of contactless digital payment solutions amid the COVID-19 pandemic.
However, over the past three months, the stock has declined 1.4%. Also, the shares have declined 20.3% over the past month.
The company generated a substantial loss in the last quarter. In fact, with customer volumes well below pre-pandemic levels, FOUR’s near-term growth prospects remain bleak, and pandemic-induced headwinds could continue to negatively impact the company’s profitability.