Affirm, Block selloffs on Worldline warning ‘unmerited,’ says Mizuho

Mizuho says Worldline’s (WRDLY) warning of a “macroeconomic deterioration” in core geographies like Germany is hurting the entire financial technology sector this morning. However, the analyst views the worries as overblown. Visa (V) did not call out a recession in its initial fiscal 2024 guidance, which it provided yesterday, and when asked about Europe, the company mentioned “resiliency” and said it feeling “good about what’s happening” in the European Union excluding the U.K., the analyst tells investors in a research note. The firm adds that stocks like Affirm (AFRM) and Block (SQ) have little to no exposure to Germany and Europe, “which means the negative stock reactions are unmerited.”