What is Fintech?
The word Fintech comprises of two words: “Fin” and “Tech”. It refers to Financial Technology. Financial Technology is an emerging technology within traditional financial services. It is an advanced technology that provides various type of software that is used for financial product and services. By using the stock signals, you can avoid hours of technical analysis to understand the market.
This technology attracts and retains customers by digitizing data. It includes different industries and sectors which include:
- Retail Banking
- Investment Management
What are the types of Fintech companies?
Fintech is spreading across all sectors wherever financing is needed. The sectors which fall under this category are:
- Digital Lending and Credit
- Online Banking
- International Money Transfer (IMT)
- Personal Finance
- Equity Financing
- Online Trading
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Pros and Cons of Fintech
Every new technology comes packed with its sets of pros and cons. On one side, Fintech has huge benefits being an advanced technology. On the other hand, this technology is not free of demerits.
Here let’s discuss the merits and demerits of Fintech:
- Increased accessibility of the financial markets daily
- Fast-paced financing and insurance approval
- Huge convenience to consumers who can access services via mobile devices, tablets, or laptops from anywhere
- Low cost of service
- Fintech promotes transparency.
- Procedures of Fintech are very different from traditional financing. And resistance to acceptance is there
- The threat of data security heightens when all the financial information and accessibility of funds are one click away
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Best Fintech Stock to Buy in 2023
The fintech industry is creating a way for swift transformations in financial solutions and banking services. Therefore, investing in this emerging technology is a smart investment move today. Below we have listed the best fintech stocks to invest in in 2023:
|Sr.||Company Name||Symbol||Price (As of 10th June 2022)||Market Capitalization|
|1||Block Inc.||SQ||$ 71.87||$ 41.7 billion|
|2||PayPal||PYPL||$ 79.3||$ 93 billion|
|3||Goldman Sachs||GS||$ 287.02||$ 97.3 billion|
|4||Green Dot||GDOT||$ 27.07||$ 1.375 billion|
|5||Visa||V||$ 199.5||$ 406.8 billion|
|6||TruFin||TRU||GBP 81.5||GBP 77.7 million|
|7||WISE||WISE||GBP 342||GBP 4.6 billion|
|8||Intuit Inc.||INTU||$ 381.22||$ 102.6 billion|
|9||Upstart Holdings Inc.||UPST||$ 37.49||$ 2.85 billion|
|10||Robinhood Market||HOOD||$ 7.81||$ 6 billion|
Block, Inc., together with its subsidiaries, creates tools that enable sellers to accept card payments. Block, Inc. is Square, Cash App, Spiral, TIDAL, TBD, and other foundational teams such as Counsel, Finance, and People that guide at the corporate level. These are the building blocks of the company which are united by the shared purpose of economic empowerment. Also, check out the best swing trading stocks.
- Square helps sellers more easily run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services.
- Cash App is focused on redefining the world’s relationship with money by making it more relatable, instantly available, and universally accessible.
- Spiral (formerly Square Crypto) builds and funds free, open-source projects that advance the use of Bitcoin as a tool for economic empowerment.
- TIDAL is a global platform for musicians and their fans that uses unique content, experiences, and services to bring fans closer to the artists they love and give artists the tools to succeed as entrepreneurs.
- TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.
Block Inc. recently shared its quarterly earnings report for the period ending 31st March 2022:
- Total Net Revenue was reported to be $ 3.96 billion
- Net Loss was reported at $ 204 million
- Earnings per share were negative $ 0.38
Block Inc. has a market capitalization of $ 41.72 billion. Its share is trading at a price of $ 71.87. The stock of the company was on an upward trend, despite exhibiting volatility, for the most of 2020 and the first three quarters of 2021. After that, the stock suffered a sharp decline. The stock lost 60 % of its value. In 2021, the stock went from $ 217.64 to $ $276 and then dropped to $ 161.51. Overall, the stock dropped by 26 % in 2021. In the year 2022, the stock price went from $ 161.51 to $ 71.87. The stock price dropped by over 50 %.
Studying the price forecasts of Block Inc., the CNN Money Analysts have predicted a 12-month price forecast of
- High Estimate of $ 210
- Median Target of $ 145
- Low Estimate of $ 70
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PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering 429 million consumers and merchants in more than 200 markets. Investing in value stocks is a long-term investment.
It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company’s payments platform allows consumers to send and receive payments in approximately 200 markets and approximately 100 currencies. It also allows customers to withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.
PayPal Holdings, Inc. announced its first-quarter 2022 results for the period ended March 31, 2022.
- Net Revenue was reported at $ 6.5 billion, representing an 8 % increase from the same period last year
- Operating income was reported at $ 0.7 billion, a 32 % decline from the same period last year
- Earnings per share were reported at $ 0.43, a 53 % increase from the same period last year
PayPal has a market capitalization of around $ 93 billion. The share of the company is currently trading at a price of $ 79.3. The stock was on an upward streak from 2020 till the third quarter of 2021. After that, the stock started declining. The stock went from $ 234.2 to 188.58 in 2021, representing a 20 % decline during the year.
In 2022, the stock continued its downward journey and has declined by 58 % to date.
Studying the price forecasts of PayPal, the CNN Money Analysts have predicted a 12-month price forecast of
- High Estimate of $ 180
- Median Target of $ 115
- Low Estimate of $ 82
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The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services across investment banking, securities, investment management, and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments, and individuals. Cybersecurity stocks are also one of the best investment opportunities.
It operates through four segments:
- Investment Banking
- Global Markets
- Asset Management
- Consumer & Wealth Management
The Goldman Sachs Group, Inc. reported earnings report for the first quarter ended March 31, 2022:
- Net Revenues of $ 12.93 billion
- Net Earnings of $ 3.94 billion
- Earnings per share of $ 10.76
Goldman Sachs has a market capitalization of $ 97.3 billion. Its share is trading at a price of $ 283.2. The Stock of Goldman Sachs has been on a bullish streak during 2020 and 2021. In 2021, the stock peaked at $ 419.69. Overall, the stock appreciated by 45 % during the year. in 2022, the stock changed course and started declining. To date, the stock has declined by 26 % during the current year.
Studying the price forecasts of Goldman Sachs, the CNN Money Analysts have predicted a 12-month price forecast of
- High Estimate of $ 519
- Median Target of $ 420
- Low Estimate of $ 321
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Green Dot is a financial technology and registered bank holding company focused on making modern banking and money movement accessible for all. The company’s technology enables faster, more efficient electronic payment and money management power intuitive and seamless ways for people to spend, spend, control, and save their money. The company’s BaaS platform enables a growing list of companies to design and deploy their customized banking and money movement solutions across the US and around the globe. Get to know about RSI trading strategies.
Green Dot has a history of 22 years of service. It serves more than 33 million customers today. It majorly operates as a branchless bank with more than 90,000 retail distributions worldwide.
Green Dot Corporation reported financial results for the quarter ended March 31, 2022:
- Total operating revenues were $400.6 million, up from $393.5 million for the first quarter of 2021, representing a year-over-year increase of 2%
- GAAP net income was $38.6 million, compared to a $25.7 million net income for the first quarter of 2021, representing a year-over-year increase of 50%
- GAAP diluted earnings per common share were $0.70, compared to a $0.46 diluted earnings per common share for the first quarter of 2021, representing a year-over-year increase of 52%
Green Dot has a market capitalization of $ 1.375 billion. The share of the company is trading at a price of $ 27.07. The stock has been volatile during the past two years. In 2021, the stock went from $ 55.8 to $ 36.24, a 35 % decline during the year. In 2022, the stock price went from $ 36.24 to $ 25.36, representing a 30 % decline to date.
Studying the price forecasts of Green Dot Corp, the CNN Money Analysts have predicted a 12-month price forecast of:
- High Estimate of $ 48
- Median Target of $ 35
- Low Estimate of $ 30
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Visa is a world leader in digital payments, facilitating more than 215 billion payments transactions, every year, between consumers, merchants, financial institutions, and government entities. Its services are spread across more than 200 countries. Visa aims to connect the world through the most innovative, convenient, reliable, and secure payments network, enabling individuals, businesses, and economies to thrive. Tech stocks is also one of the best investment opportunity.
Visa Inc. reported second-quarter results for the year 2022:
- Net Revenues were $ 7.2 billion, an increase of 25 % from the same period last year
- Net Income was $ 3.6 billion an increase of 21 % from the same period last year
- Earnings per share were reported at $ 1.7, an increase of 23 % from the same period last year
Visa has a market capitalization of $ 406.81 billion. Its share is trading at a price of $ 199.51. The share has been exhibiting volatility in the past two years. In 2021, the stock peaked at $ 249.02 and closed off the year at a price of $ 216.71. Overall, the stock maintained its price level when compared to the price at the start of the year.
In 2022, the stock continued its volatility. To date the stock has declined by 11 %, till date.
Studying the price forecasts of Visa, the CNN Money Analysts have predicted a 12-month price forecast of:
- High Estimate of $ 48
- Median Target of $ 35
- Low Estimate of $ 30
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TruFin PLC provides financing services. The Company offers consumer financing services to customers and small and medium business enterprises. TruFin serves clients in the United Kingdom and Jersey Channel Islands. The company operates through four segments:
- Short Term Finance
- Payment Services
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TruFin recently reported its yearly result for 2021:
- Gross revenues were £13.1m, representing a year-on-year decline of 12%
- Cash balance of £7.6m
TruFin has a market cap of GBP 77.7 million. Its share is trading at a price of $ 82.5. The share of the company has been on a bullish streak for the past two years. In 2021, the stock went from GBP 47.36 to GBP 80.264, representing a 70 % increase during the year. In 2022, despite multiple dips and peaks, the stock maintained its price level.
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Wise plc provides cross-border money transfer services for personal and business customers in Europe, the United Kingdom, the Asia-Pacific, North America, and internationally. The company’s payments infrastructure comprises:
- Wise Transfer to send money abroad
- Wise Account to meet multi-currency banking needs for people
- Wise Business, an account that provides business customers with international banking features
- Wise Platform that allows banks, including credit unions and financial institutions, and enterprise partners to integrate its payments network into their mobile applications or online banking
The company recently shared its half-yearly earnings updated:
- 3.7 million personal customers and 230 thousand business customers used Wise Transfer and Wise Account
- A total of £ 34.4 billion in cross-border payments were processed, representing a 44% increase as compared to the same period last year
- Revenue was reported at £ 256.3 million, a 33% increase versus £192.2 million in the same period last year.
- The company aims to continuously increase the speed of its transfers. As per the report:
- 86 % of transfers arrive within 24 hours
- 58 % of transfers arrive within 1 hour
- 40 % arrive instantly
WISE has a market capitalization of GBP 4.6 billion. The share of the company is trading at a price of GBP 342. The company changed its name from TransferWise to WISE. in 2021. After an initial rise in price, the stock started to decline. The stock peaked at GBP 1,140 in September 2021. During the current year, the stock has declined by almost 60 % to date.
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Intuit is the global technology platform that helps consumers and small businesses overcome their most important financial challenges. The company serves more than 100 million customers worldwide with its brands: TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp, we believe that everyone should have the opportunity to prosper
Intuit Reports Second Quarter Results for 2022:
- Total revenue was recorded at $2.7 billion, representing an increase of 70 percent as compared to the same period last year
- Operating Income was reported at $ 56 million, as compared to a loss of $ 25 million during the same period last year
- Earnings per share were recorded at $ 0.35
Intuit Inc has a market cap of $ 102.6 billion. The share of the company is trading at a price of $ 363.99. The share followed a bullish trend for the majority of 2020 and the whole of 2021. The share peaked at $ 692.34, in November 2021. From a price of $ 379.85 to $ 643.22, the share appreciated by almost 70 % during the year.
In 2022, the stock picked up a bearish trend. To date, the stock declined by approx. 45 %.
Studying the price forecasts of Intuit Inc., the CNN Money Analysts have predicted a 12-month price forecast of:
- High Estimate of $ 650
- Median Target of $ 500
- Low Estimate of $ 450
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Upstart Holdings Inc.
Upstart is a leading AI lending platform partnering with banks and credit unions to expand access to affordable credit. By leveraging Upstart’s AI platform, Upstart-powered banks and credit unions can have higher approval rates and lower loss rates for every race, ethnicity, age, and gender, while simultaneously delivering the exceptional digital-first lending experience their customers demand. More than two-thirds of Upstart loans are approved instantly and are fully automated. If you are seeking a steady stream of income, you should invest in REIT stocks.
Upstart just delivered its seventh consecutive profitable quarter and a fourth straight quarter with triple-digit year-on-year revenue growth. The financial highlights of the quarter are:
- Total revenue was $310 million, an increase of 156% from the first quarter of 2021
- GAAP net income was $32.7 million, up from $10.1 million in the first quarter of 2021.
- GAAP diluted earnings per share were $0.34
- Adjusted EBITDA was $62.6 million, up from $21.0 million in the same quarter of the prior year.
- Bank partners originated 465,537 loans, totaling $4.5 billion, in the first quarter, up 174% from the same quarter of the prior year.
The financial outlook for the full year 2022 is:
- Revenue of approximately $1.25 billion
- Contribution Margin of approximately 48%
- Adjusted EBITDA of approximately 15%
Upstart Holdings has a market capitalization of $ 2.85. The company went public in Dec 2020. For the first nine months, after going public, the stock rose to $ 390. After that, the stock started to fall. During the year 2021, the stock went from $ 40.750 to $ 390 and then $ 151.3. During the current year, the stock started off at $ 151.3 and has declined by approx. 78 % to date.
Studying the price forecasts of Upstart Holdings, the CNN Money Analysts have predicted a 12-month price forecast of:
- High Estimate of $ 88
- Median Target of $ 44
- Low Estimate of $ 15
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Robinhood Markets is on a mission to democratize finance for all. With Robinhood, people can invest with no account minimums through Robinhood Financial, LLC, buy and sell crypto through Robinhood Crypto, LLC, spend, save, and earn rewards through Robinhood Money, LLC, and learn about investing through easy-to-understand educational content.
Robinhood announced financial results for its first quarter ended March 31, 2022.
- Total net revenues were reported to be $ 299 million. They decreased by 43 % o compared with $ 522 million in the first quarter of 2021.
- Net loss was reported at $ 392 million, or $ 0.45 per diluted share, compared with net loss of $1.4 billion, or $6.26 per diluted share in the first quarter of 2021.
- Monthly Active Users (MAU) were reported to be 15.9 million compared with 17.7 million for March 2021. This represents a 10 % decline.
- Average Revenues Per User (ARPU) was reported at $53, compared with $137 in the first quarter of 2021. This represents a decline of 62 %.
Robinhood has a market capitalization of $ 6 billion. The share of the company is currently trading at a price of $ 7081. The stock of the company has been volatile during the past two years. In 2021, the stock price went from $ 162.65 to $ 166.72. During the current year, the stock plunged and to date, it has declined by approx. 40 %
Studying the price forecasts of HOOD, the CNN Money Analysts have predicted a 12-month price forecast of:
- High Estimate of $ 36
- Median Target of $ 11.25
- Low Estimate of $ 5
Fintech is likely to be a bit unstable since it is still an emerging and growing sector. Therefore, investors with a tolerance for risk should be investing in fintech stocks.
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