Fiserv (NYSE:FI) saw its stock plunge 13% after the company’s Chief Financial Officer, Robert Hau, suggested that growth in its Clover point-of-sale business would remain flat in the second quarter, echoing first-quarter results.
Speaking at a JPMorgan investor conference, Hau acknowledged that Clover’s payment volume growth has come under investor scrutiny. In Q1, the platform posted an 8% year-over-year increase in annualized gross payment volume—down from the 14% pace recorded in the prior quarter.
Hau attributed the slowdown in part to ongoing customer transitions. Last year, Fiserv moved a number of non-Clover clients over to the platform, which has created temporary pressure on performance metrics. He noted that this headwind is expected to persist, potentially intensifying in Q2.
The subdued growth forecast appears to have spooked investors, prompting a sharp sell-off. Clover has long been viewed as a critical driver of Fiserv’s expansion in the competitive fintech space, and signs of stagnation have raised concerns over future momentum.
In a sector where growth indicators are closely watched, particularly for core products like Clover, even moderate slowdowns can significantly influence market sentiment. The steep drop in Fiserv’s stock reflects these heightened sensitivities.
Investors now face a key question: is the current deceleration a short-term blip tied to client conversion cycles, or a sign of broader issues in Fiserv’s growth strategy? With Q2 performance expected to mirror Q1, the company will be under pressure to reignite momentum in the second half of the year.