A year has passed since the historic milestone of the exit happened of dLocal on Wall Street with US$1 billion market capitalizationthus becoming the first Uruguayan unicorn in the US stock market.
What happened in this year?
First of all, it is worth remembering that in your first day on the US stock market the company managed to raise US$ 617.65 million, trading 29.4 million shares at a price of US$21 each. After its IPO (Initial Public Offering), it began trading on the Nasdaq100 index on Thursday, June 2, 2021 at US$31 per action with the symbol #DLOrising 48%, which could qualify as a successful debut.
If we look at the current photo, the price of each share of #DLO (dLocal), today it is at US$ 28.80, approximately 7% below its first trading day.
But not everything was always like this, since on August 1 of last year it reached its historical maximum, reaching US$ 73.24 per share (+136% in almost two months), which clearly kept the investors who trusted the company that bases its business model on online payment methods happy.
Is the drop in price a reason not to consider dLocal within an investment portfolio?
Before taking the position of ruling out #DLO as an optionit is necessary to analyze the global context by which the price of its share could have been affected. On the one hand, we had pandemic of covid-19, which despite the fact that initially it could have strengthened a digital payment company due to the confinement measures, today it keeps us paying the inflationary consequences throughout the world, with the main central banks raising interest rates to keep consumer prices within target ranges, which has not been well received by the stock market in general.
This has generated the Nasdaq100 index to fall about 22% so far in the year 2022, therefore, the truth is that #DLO has been affected by a global context rather than a one-time event of the company itself. A more auspicious scenario and less uncertainty regarding the world economy should once again boost US equities, which have risen around 3.5% in the last 30 days.
Is there a favorable scenario for #DLO in the future?
From May 12, 2022 to date, dLocal’s share price shot up approximately 77%rising from US$15 to the current US$26.54 this Friday, June 10.
GoogleFinance.
This happened in a context in which the Nasdaq100 index (which groups the main technology stocks traded on the US stock market) rose approximately 7% in the same period. So it is clearly seen that the #DLO stock has fared better than the index that mostly represents its sector.
On the other hand, a few weeks ago we met the quarterly results of the company, where it reported a net income of $0.08 per share and revenue increased by 117%, to $87.5 million (exceeding the previous estimate of US$82.6 million), something that led to its share price soaring around 15% at the time.
It is clear that the company, in a favorable scenario for equities, behaves in the way that we all expected when it carried out its IPO a little over a year ago. The future of the Uruguayan company looks favorable in an environment where technological applications and means of payment have migrated to online systems at lower costs, and where the #DLO value proposition of being an “all-in-one payment platform that connects global merchants with emerging markets”, could be a format increasingly accepted by the market.
