Key points

• Adyen, a money transmitter company, experienced a stock flash crash on Thursday by 39% after the company announced its slowest revenue growth on record.
• Adyen has been seen for a long as a growth stock after posting consistent revenue growth of 26% each half year since its 2018 stock market debut.

European economic slowdown caused the flash crash of Adyen stock, a payments company following news that it had slowed growth for the first time since 2018. The event claimed $20 billion from the company’s total valuation.

Slow European economic growth affects multiple companies

The Eurozone has been battling high inflation rates with the possibility of a recession being on the horizon. As a result, multiple companies have decreased productivity, anticipating a contracting market.

On Thursday, Payments Company Adyen released monetary reports indicating that it was for the first time in the first half of the year since 2018 expecting slowed revenue growth. This stock had been viewed as a growth stock as it had posted consistent 26% growth in each year’s H1 since its debut.

As a result, a massive sell-off happened, making it lose 39% of its share value, equivalent to 18 billion euros or $20 billion. Though the company comfortably weathered the pandemic turbulence, the major shift in the Eurozone macroeconomic environment has challenged its growth strategy greatly, which is to blame for the dismal performance.

Additionally, it is still expected that pain will persist in the Eurozone markets as inflation rates remain unsurprisingly high, necessitating more action from the concerned governments and central banks. However, the region is not promised how long the ‘harsh’ economic environment will last.

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