Key insights
- The article advises investors to wait for fundamental improvements before investing in struggling growth stocks like FISV and PYPL, citing degrading fundamentals. It also highlights NVO's unexpected negative revenue growth, suggesting the market anticipated a slowdown. The core message is to prioritize fundamental turns over potential short-term gains to avoid significant losses.
One of the great financial tech franchises - $FISV - getting murdered over and over again as we watch. When weakness in the fundamentals drives a stock down, do not invest until the fundamental turn.
PYPL fundamentals are also degrading. You have to wait for a sign of the turn.
NVO looks cheap but NO ONE thought it would post negative revenue growth in this year back in 2023/24. People would have laughed if you said that. The market knew 2025 revenue growth was going to collapse. And now it is getting worse. Wait for the number to turn.
Yes, you might miss a 20% pop but it is worth it to miss the FISV "collapsing ladder" as some used to call it. I liked to call it "shiza down the leg".