Fintech stocks have had a stellar 2020. Rightfully so, as countless people have come to rely on digital payment solutions throughout their daily lives. Whether it is the average consumer or businesses of varying sizes, fintech offers vital services in these times. On one hand, this is due to the coronavirus pandemic making social distancing a new norm for all consumers. On the other hand, the push for digital acceleration has also seen many business owners flocking to fintech companies to bolster their payment infrastructures. Therefore, investors have been looking for top fintech stocks to buy right now.
With cashless payments being the safest means of buying just about anything now, fintech companies have been seeing huge gains. We only need to look at the likes of Square (SQ Stock Report) and StoneCo (STNE Stock Report). The two have seen gains of over 100% in their stock price over the past year. Understandably, investors may be looking at this and wondering if there is still time to jump on the fintech train. Given the tailwinds from 2020, it would depend on when the pandemic ends. By current estimates, it could take somewhere between months to years to vaccinate the world. In that time, fintech stocks and investors could still be reaping the rewards.
Nevertheless, people will likely continue to rely on fintech in the future. Being able to make payments digitally provides a new dimension of convenience to consumers. Can this convenience cement the importance of fintech in the lives of the general public? Your guess is as good as mine. But, while we’re on the topic, here is a list of the top fintech stocks to watch this week.
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Futu (FUTU Stock Report) is a leading tech-driven online brokerage and wealth management platform. The China-based company offers investment services through its proprietary digital platform, Futubull. Futubull is a highly integrated application that investors can access through their mobile devices. Some say Futu is the Robinhood of China. Speaking of investing, FUTU stock is up by over 340% in the past year. Let’s take a closer look.
On November 19, 2020, the company reported record earnings in its third-quarter fiscal. In it, Futu saw a 281% year-over-year jump in total revenue. To add to that, investors were definitely thrilled by the 1800% surge in earnings per share over the same period. CEO Leaf Hua Li explained, “We continued to deliver strong results in the third quarter of 2020. Net paying client addition was approximately 115 thousand, bringing the total number of paying clients to over 418 thousand, up 136.5% year-over-year.” He also mentioned that the company was very confident about hitting its full-year guidance. This would explain why FUTU stock hit its current all-time high the day after the report was posted. Although the stock has taken a breather since then, investors are sure to be hungry for more.
In line with that, Futu does not seem to be resting on its laurels just yet. Just last week, it was reported that Futu is on track to launch its operations in Singapore by April this year. Li said, “Singapore is one of the major financial centers in the world, while it can also serve as a bridge to Southeast Asia.” At the same time, there were also mentions of a U.S. expansion as well. Futu seems to have a busy year planned ahead. Do you think FUTU stock will benefit from this?Best Fintech Stocks To Watch This Week: JPMorgan
Multinational investment bank and financial services company JPMorgan (JPM Stock Report) needs little introduction. As of July last year, it was ranked by S&P Global as the largest bank in the U.S. and seventh-largest in the world. Notably, JPM stock appears to be catching up to its pre-pandemic high of around $140 a share. A recent play by the company could possibly contribute to its recent run-up.
On December 28, 2020, reports said JPMorgan decided to purchase leading third-party credit card loyalty operator, cxLoyalty Group. The bank will be acquiring the technology platforms, travel agency, gift cards, and points businesses of cxLoyalty Group. JPMorgan head of consumer lending business Marianne Lake said, “Acquiring the travel and rewards businesses of cxLoyalty will provide enhanced experiences to our millions of Chase customers once they are ready, comfortable, and confident to travel.”
Couple with JPMorgan’s relations with Expedia (EXPE Stock Report), the company seems to have long term gains in mind. Essentially, it will own both ends of a two-sided platform with millions of credit card users and direct relationships with hotel and airline companies. The bank appears positioned to make the most out of post-pandemic travel tailwinds. When that time comes, JPM stock investors could be in for a treat.
Financially, the company appears to be doing great as well. In its third-quarter fiscal posted in October, the company reported $28.52 billion in total revenue. Additionally, it also saw a 120% year-over-year rise in cash on hand to the tune of $462.82 billion. Considering JPMorgan’s solid financials and ambitious plans, will you be watching JPM stock moving forward?Best Fintech Stocks To Watch This Week: PayPal
PayPal (PYPL Stock Report) is undoubtedly one of the frontrunners in the field of digital finance. Its key services include mobile commerce and client-to-client transactions. The company has even ventured into the business of cryptocurrencies. With Bitcoin breaching the $34,000 over the weekend, it seems to be an exciting time for PayPal to say the least. The company’s share prices hit a new all-time high on December 23 but have since taken a slight breather. Investors may be wondering if it still has room to grow this year.
In its recent quarter fiscal posted last November, PayPal reported total revenue of $5.46 billion. Moreover, the company saw earnings per share increase by over 120% year-over-year. With these numbers, I’m not surprised to see that investors have been flocking to PYPL stocks in the last two months.
CEO Dan Schulman said, “PayPal’s third quarter was one of the strongest in our history. Our growth reinforces the essential role we play in our customers’ daily lives during this pandemic. Going forward, we are investing to create the most compelling and expansive digital wallet that embraces all forms of digital currencies and payments, and operates seamlessly in both the physical and online worlds.”
Given the company’s strategic play of waiving stimulus cheque-cashing fees, I’d say PayPal is definitely adapting well to the times. In other news, it was also reported that American Express (AXP Stock Report) will be collaborating with PayPal. In detail, AmEx Platinum cardholders will receive $30 in PayPal credit monthly for the first half of 2021. Safe to say, PayPal shows no signs of slowing down. Can PYPL stock continue its momentum this year?