Shift4 Payments (FOUR) Traded Down in Q1 Following an Acquisition Announcement

Wasatch Global Investors, an asset management company, released its “Wasatch U.S. Select Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities declined in the first quarter due to potential tariffs and government funding cuts. Against this backdrop, the strategy was down but exceeded the Russell Midcap® Growth Index, which lost -7.12%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Wasatch U.S. Select Strategy highlighted stocks such as Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) offers software and payment processing solutions. The one-month return of Shift4 Payments, Inc. (NYSE:FOUR) was 4.17%, and its shares gained 31.55% of their value over the last 52 weeks. On June 25, 2025, Shift4 Payments, Inc. (NYSE:FOUR) stock closed at $96.45 per share, with a market capitalization of $8.547 billion.

Wasatch U.S. Select Strategy stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its Q1 2025 investor letter:

“Another detractor was Shift4 Payments, Inc. (NYSE:FOUR). The company is a leading provider of integrated payment processing and technology solutions. The stock was down in late February after an announcement that Shift4 would acquire Global Blue, another payments provider. We’re in the middle of assessing what the deal means for Shift4 in the future. While the acquisition likely helps Shift4 expand internationally, we’re currently learning more about Global Blue, how it fits with Shift4’s business and what synergies Shift4 can extract from the acquisition.”

Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the first quarter, which was 38 in the previous quarter. In the first quarter, Shift4 Payments, Inc.’s (NYSE:FOUR) payment volume increased 35% year-over-year to $45 billion. While we acknowledge the potential of Shift4 Payments, Inc. (NYSE:FOUR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Shift4 Payments, Inc. (NYSE:FOUR) and shared the list of best mid cap growth stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of FOUR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.