Inter (INTR) make sour Nasdaq debut; what caused stocks to fall 12%?

Inter (INTR) make sour Nasdaq debut;  what caused stocks to fall 12%?

Contaminated by the negative performance of shares on the Nasdaq, Inter’s BDRs closed on Thursday with a devaluation of 7.96%, trading at R$17.93 (Image: Disclosure/Inter)

The gestures of Inter melted on the first day of trading Nasdaq.

under the ticker INTRshares of the company closed strong by 12.56%, trading at $3.48 each, even with the New York Stock Exchange ending with an appreciation of 1.62%.

Vitorio Galindo, Investment Analyst and Head of Fundamental Analysis at quantifiedclaims that Inter’s significant fall on the Nasdaq is due to rising interest rates in United Stateswhich particularly affects companies in the Technology.

What we’ve seen is a migration of investors from tech companies to names with more predictable cash flows and greater potential for generating income and dividends — or even operating cash generation that can withstand the period of high interest rates and inflation, comments the specialist.

“This increase in interest rates discourages investors from paying valuations very high. Money is getting scarcer. It’s harder to find investors who want to pay for future earnings or expectations in advance,” he explains.

The debut on the US exchange takes place a few days after the start of trading in the RDB of the company in B3 (B3SA3), which closed the first day up almost 2%, but has since seen a rapid decline.

Contaminated by the negative performance of shares on the Nasdaq, the BDRs of Inter closed on Thursday with a devaluation of 7.96%, trading at R$17.93.

The company’s migration to the US stock market is the result of a corporate reorganization aimed at implementing a growth business strategy. With the restructuring, Banco Inter becomes part of the holding Inter&Co.

The Nasdaq listing is also an attempt for the company to become a global, higher-multiple-owned enterprise under the control of Menin family.

BIDI3 and BIDI4 shares, as well as BIDI11 units, were no longer traded on the B3 last Friday (17).

Is migration positive?

For Gustavo Pazos, analyst of the research team of Warrenwe can say that Inter was right to migrate to the Nasdaq, where investors are more accustomed to growing businesses.

However, migration may not be the solution to Inter’s poor performance in the capital market.

“The migration doesn’t change the foundation of the business, it continues to operate the same way. She just approached investors who were a little more used to her thesis,” says Pazos.

Two reasons lead to action, assesses the analyst.

In addition to citing the current adverse macroeconomic scenario, which is pushing investors toward interest-linked bonds, not stock exchanges, Inter’s business model has some holes in it.

Inter’s dynamic is similar to that of Nubank (NAKED;NUBR33). Both companies are experiencing strong growth in their respective customer bases. However, they cannot make money from it.

“Banks generate, on average, ten times more money from their customers than Nubank, Inter. In that sense, having a smaller but more profitable customer base is more beneficial than having a huge customer base that cannot generate revenue,” says Pazos.

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O money time publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

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