Shift4 Payments Stock Forecast: Potential Gains Of 100%

Space has been in the spotlight for most of 2021. Now, with NASA and Elon Musk's SpaceX's DART missile launch to crash into an asteroid, it's trending once again. And Shift4 Payments stock is a way for investors to get a slice of SpaceX.

macro photography of black circuit board


Image Source: Unsplash

While it might not be direct, Shift4 Payments Inc. (Nasdaq: FOUR) is a backdoor play on Starlink, SpaceX's satellite Internet service. The fintech stock stands to gain more than 100% over the next 12 months because of the five-year deal. It helps that the payment processing market is expected to reach more than $75 billion by 2026.

This partnership with Starlink didn't come out of the blue though. In fact, Isaacman was one of the few who flew to orbit with SpaceX back in September during the historic Inspiration4 mission.

And it could be a boon for Shift4. After the third-quarter results, Shift4 executives claimed that Starlink is a massive opportunity that exponentially grows the company′s total addressable market in all areas.

So, how will Shift4 benefit from this partnership with Starlink? Let's find out...

Shift4 Payments Deal With Starlink

Founded in 1999 by Jared Isaacman when he was only 16 years old, Shift4 Payments specializes in mobile payment software and hardware for mid-sized companies. Shift4 works with over 200,000 businesses in the retail, hospitality, leisure, and restaurant industries. Recently, the company signed on to power BetMGM's online gaming and sportsbook platform.

When it comes down to the company's business model, about 57% of its revenue comes from merchants and payment fees. Nearly 27% of its revenue comes from subscription fees for point-of-sale products and software. Transaction fees for third parties account for about 15%.

Shift4 processes more than 3.5 billion transactions annually for over 7,000 partners, and it surpassed $1 billion in weekly processing volume back in June 2021. This has led the company to develop strong recurring revenue, up 75% year over year.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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