The Apple-CoreCard partnership was formed seven years ago, resulting in a significant increase in the latter’s valuation to just under $500 million shortly after.
CoreCard (CCRD) stock is worrying retail investors, as its largest client, Apple (AAPL), is reportedly considering transitioning its credit card business from Goldman Sachs (GS) to JPMorgan Chase (JPM).
A Wall Street Journal report, citing people familiar with the matter, stated last week that Apple has narrowed its focus to JPMorgan as its preferred choice to replace Goldman as the issuer of its Apple-branded credit card. CoreCard stock came under pressure in the two sessions that followed the report before staging a comeback on Thursday.
The recovery came on the back of an announcement from Euronet Worldwide Inc. (EEFT) that it had agreed to buy CoreCard for $248 million, or $30 per share, in a stock-for-stock merger transaction.
Euronet, a provider of debit-card processing services for banks and fintechs primarily in Europe and Asia, views CoreCard’s credit-card processing as a means to expand its offerings to its clients. The transaction has been approved by the boards of both Euronet and CoreCard, and is expected to close in late 2025.
CoreCard stock came under further pressure on Friday, along with the broader market, amid the release of the July jobs report.
A Wall Street Journal report stated on Sunday that CoreCard CEO Leland Strange said the company could lose the Apple partnership if JPMorgan were to acquire the tech giant’s credit card business. The executive reasoned that JPMorgan has in-house processing capabilities, obviating the need for an external processor. He also said the risk exists even if a different credit card issuer wins the deal.
The report also said CoreCard offers the Apple credit card distinctive features, such as “bills on the first of every month and a payment wheel that shows cardholders their projected interest costs.” The micro-cap, however, has no other banking partnership for its offering.
The Apple-CoreCard partnership was forged seven years ago, pushing up the latter’s valuation to just under $500 million shortly after.
When reports surfaced in 2023 that Apple was severing ties with Goldman, CoreCard’s stock experienced an extended decline throughout the year. The stock began to turn the corner when Goldman extended its partnership with the company, offering an extended timeframe and adjustments to fees.
On Stocktwits, retail sentiment toward CoreCard stock was ‘bearish’ (41/100) heading into Monday, worsening from ‘neutral’ a day ago. The message volume has remained ‘high’ amid the development.
CoreCard stock is up 22% for the year-to-date period.
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