3 best fintech stocks to watch and invest in
In the pre-pandemic business landscape, digital transactions were on slow but steady growth. And as e-commerce platforms took a significant market share from physical stores, the importance of digital payment platforms is on the rise.
Eventually, when the pandemic brought about a sudden shutdown of physical businesses, most companies scrambled to build an online presence. Similarly, fintech companies continue to experience an influx of new users. Today, fintech companies combine IT with financial services to offer innovative solutions and promising stocks. Here are some of the best fintech stocks with promising potential:
Square is a commerce ecosystem that allows merchants to accept card payments and a range of services. The company is among the dominant Fintech sector players and is recognized as an innovative company in this segment. One of its products, CashApp, has become a highly sought-after personal finance platform with more than 70 million active users.
The Fintech player has announced plans to acquire Afterpay, an Australian BNPL firm. Afterpay has about 16 million users, and Square plans to offer consumer credit to CashApp users.
Square’s revenue grew by 147% in the last quarter, while the Gross Payment Revenue rose to $42.8 billion. As the global economy slowly comes to life following the Pandemic aftermath, digital transactions are set to increase. Therefore, Square stock is a strategic investment.
2. CoinBase Global
Coinbase Global is among the entrants in the Fintech stock arena, and it’s the largest crypto exchange in the United States. The fintech company launched in 2012 to help investors buy bitcoins. Among its 68 million active users, about 8,000 are organizations.
During its first report as a publicly-traded company, it recorded a trading volume of $335 billion, an increase from $30 billion a year earlier. At the same time, its net revenue was $1.6 billion with $0.77 billion in net income.
COIN stock is attracting more attention after declaring that they’ll start taking payments in Dogecoin. This is in addition to supporting all the major cryptocurrencies, including Bitcoin, Etherium, Litecoin, and Bitcoin Cash. Coinbase is expected to expand to other areas using blockchain technology, including Defi.
Workday is becoming a vital tool for CFOs and CPOs to streamline business operations. The company offers enterprise cloud-based applications for financial management, human resources, expense management, planning, and big data analytics.
Businesses across industries realize the need to leverage coherent data collection and analytics strategies. Today, CFOs are no longer following traditional financial management silos. Instead, they oversee data from all business levels. Today, almost every organization now uses sales data and people data to supplement financial accounting data. This shift in business operations is fueling Workday’s rapid growth.
In the first quarter, Workday reported a 97.7% increase in non-GAAP profit over the last year. The company is expected to generate $4.43 billion by the end of the year. Most importantly, Ethisphere lists Workday as among the world’s most ethical companies.
Fintech stocks have been an intriguing lot in the stock market. As global adoption of financial technology continues to rise, some fintech companies will experience astronomical growth. It can be rewarding to watch the most promising options before investing.