This payment stock will benefit most from the economic reopening, money manager says

This payment stock will benefit most from the economic reopening, money manager says

The recent slump in shares of Square has professional money managers looking elsewhere in the payments space for profit.

Shares of the online payment company fell sharply ahead of its earnings report on Tuesday, with fellow industry player PayPal's stock following suit. The two giants, which bought into bitcoin last year, have come under pressure alongside the cryptocurrency.

Square declined further in extended trading following its report “” down more than 4% in Wednesday's premarket “” even though the results beat analysts' expectations. It announced an additional $170 million bitcoin purchase as part of the release.

Square and PayPal shares are down roughly 11.5% and 14% in the last week, respectively, while legacy payment stocks Visa and Mastercard are up about 2% and 2.5%.

Mark Tepper, president and CEO of Strategic Wealth Partners, chalked it all up to a larger stock market rotation.

"A lot of the high-multiple, high-momentum stocks, they're under pressure. Boring stocks are suddenly the flavor of the month," he told CNBC's "Trading Nation" on Tuesday. "You've got interest rates going up, inflation is being talked about, so all that stuff is really crushing these high-multiple stocks."

While he loved PayPal and Square's disruptive attributes and said "cashless and contactless is the way