Fintech firms are in high demand as the world looks for new financial services alternatives.
Fintech has evolved over the years—the finance-tech combo has made things easier for everyone. Fintech industry is based on modern technology that is integrated with financial businesses.
The fintech market is intoxicating and each new year the concept of cashless payment is getting more acceptance. Still, most of the transactions in the financial world are done in cash. The branch-based culture is still active, but the online financial system is making robust progress—more than ever. Especially, after the advent of digital currencies, things are changing in the fintech world.
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Fintech stocks have had a thrilling time in 2020. The online industry in every business has seen growth due to lockdowns from the COVID-19. The importance of the online system has proved to be bigger than what people actually believed.
Fintech stocks were among the top gainers in 2020. As we head into the future, the potential of fintech firms looks far-reaching. Here the three best fintech stocks to buy in 2021.
PayPal (PYPL) is a fintech giant that allows online payments platform—and supports various cryptocurrencies now. With the adoption of Bitcoin and other leading digital coins, PayPal is anticipated to skyrocket in the long-term run.
Undoubtedly, PayPal is at the forefront of online payment networks in the world. The company stands with a market cap of $280.96 billion. The bitcoin adoption is going to transform PayPal into something way bigger. More investors are going to come PYPL’s way.
Recently, Mizuho Securities ‘Dan Dolev said that the PYPL stock has an upside potential of 46% from its recent closing price. Dan has given PayPal stock a price target of a whopping $350 from the prior all-time high of $290.
In the last fiscal year quarter, the company reported aggregate revenue of $5.46 billion. While the earnings per share soared over 120% from the prior year. These numbers suggest that analysts and investors are rightfully bullish on the payment company.
StoneCo (STNE)is a Brazilian-based fintech firm that provides payment services, management tools, and flexible financial products. The company has had robust growth in recent times.
The encouraging prospect for StoneCo is its increasing profits. Also, the earnings per share have soared significantly, which has inclined more inventors. As of Sep. 2020, the EPS was up by 22% from R$2.18 to R$2.67.
In the past month, Matt Frankel, CFP, and Industry Focus on Fool Live video clip stated that Warrant Buffett has made money on StoneCo. Frankel highlighted that Berkshire Hathaway owns around 5% of STNE shares—a share worth billion dollars.
StoneCo provides its users with effective and efficient merchant-specific software to deal with the financials of their businesses. Recently, the company announced that it has completed the issuance of R$580 million in FIDC quotas. This means that StoneCo has raised R$493 millionin third-party capital for its credit solution for SMBs in Brazil.
This is a big achievement for the company that will open ways for Stone’s strategic roadmap to becoming a full financial platform for SMBs.
Stone is growing into a bigger company, and still has much more to offer and occupy a strong position in the local market. So, STNE holds potential and if Buffet has betted on STNE, then there is something big in the long-term.
Futu Holdings (FUTU)
Futu Holdings (FUTU) is a well-known online brokerage and wealth management firm based on modern technology. The company has a proprietary digital platform, Futubull, which offers investment services to the customers. Futubull is based on the latest tech with a highly integrated application. FUTU stock has soared by almost 340% in the last year.
Futu is also known as the Robinhood of China. In the third quarter of 2020, the company reported a whopping increase in its revenue by 281%. While the earnings per share soared over 1,800%. The company continued the bullish momentum from prior quarters as the total number of paying clients crossed 418,000, up by 135% year-over-year.
The Chinese firm is well-position to continue its growth this year. Futu’s wealth management business, Money Plus has created partnerships with nine renowned asset managers including BNP Paribas, Morgan Stanley, and Invesco, to name a few. Futu stock has become an investors’ favorite—the stats are enough to justify. FUTU has an average trading volume of 3.48 million. So, Futu Holdings (FUTU) has potential and looks a good bid in the long-term.