The Tyro share price has fallen more than 20% over the past month. Tyro has yet to completely resolve its massive terminal outage issue.
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There’s no doubt the Tyro Payments Ltd (ASX: TYR) share price had a tumultuous January, after the company experienced a service outage for over six days straight last month. The issue has yet to be completely resolved.
Considering that Tyro is the largest eftpos provider outside of the big four banks, the impact of the service failure is extensive. Small businesses, in particular, suffered from the blow of Tyro’s outage, and the Tyro share price plummeted amid the controversy.
What has the Tyro share price been doing over the past month?
The lowest day for Tyro during the past month was 15 January. The Tyro share price fell over 27% that day to close at $2.32.
This price dip was brought on by a short seller which claimed that Tyro is “the most unreliable & technologically inferior fintech in Australia.”
The Tyro share price regained ground rocketing up 17% a couple of days later. This rise came after Tyro responded to the allegations that had been made against it by the short seller.
The allegations were based on claims that Tyro did not truthfully convey the extent of the damage caused by the company’s terminal outages. Investors were pleased with Tyro’s response to the claims and the share price soared that day.
Tyro merchants still impacted by the outage
The update states that there remains merchants that do not have operational service. Other merchants have partially functioning units. Finally, one group of merchants will be required to replace dated terminal equipment all together.
Tyro maintains that the company is committed to repairing and returning impacted terminals so that the network returns to pre-incident levels.
Regardless of the company’s efforts, businesses already suffering the harsh conditions set by the coronavirus have now suffered a double blow caused by the Tyro outage.
The loss of essential revenue caused by only being able to accept cash payments is something that some business owners are willing to go to court over.
At the time of writing, the Tyro share price is down 1.58% for the day, sitting at $2.48 per share. It has plummeted more than 20% in the past month, leaving the company with a market capitalisation of $1.26 billion.
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Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.