Why Payoneer Global Inc. (PAYO) Nosedived on Wednesday

We recently published an article titled Why These 10 Firms Nosedived Today. In this article, we are going to take a look at where Payoneer Global Inc. (NASDAQ:PAYO) stands against the other stocks.

The stock market bounced back from the previous day’s losses, with all major indices finishing higher as investors cheered the central bank’s decision to keep interest rates unchanged.

On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still “wait and see” the impacts of President Donald Trump’s tariff policies.

The Dow Jones rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent.

Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

A closeup of virtual and physical Mastercard cards demonstrating the company’s innovative payment platform.

Payoneer Global Inc. (NASDAQ:PAYO)

Payoneer Global Inc. (NASDAQ:PAYO) fell by 13.60 percent on Wednesday to close at $6.16 apiece after the company withdrew its previously issued full-year guidance, coupled with a mixed earnings performance in the first quarter of the year.

In its earnings release, Payoneer Global Inc. (NASDAQ:PAYO) said that it was suspending its previously issued full-year 2025 guidance given the current macroeconomic uncertainties.

“There is a broad range of potential outcomes, and as a company supporting cross-border businesses that may be negatively impacted, we face substantial risks which could impact our financial results,” Payoneer Global Inc. (NASDAQ:PAYO) Chief Financial Officer Bea Ordonez said.

In the first quarter, the company reported a 29-percent drop in net income at $20.5 million versus the $28.97 million in the same period last year.

Revenues, however, were higher by 7.9 percent at $246 million versus $228 million year-on-year.

Operating expenses also grew by 14.8 percent to $217 million from $189 million in the same comparable period.

Overall PAYO ranks 3rd on our list of Wednesday’s worst performers. While we acknowledge the potential of PAYO 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PAYO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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