Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » 2 Top Fintech Stocks to Buy in January
    Cryptocurrency News

    2 Top Fintech Stocks to Buy in January

    userBy userJanuary 9, 2025No Comments4 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Financial technology (fintech) is a fast-growing segment of the broader financial sector, and revenue generated by companies in this space could be massive. Estimates from BCG put the global fintech market at $1.5 trillion in sales by 2030.

    That’s just an estimate, of course, but it’s a good indicator of why companies are competing to be on the cutting edge of new fintech services. Two such companies that are already in a good position to benefit as fintech grows are Sofi Technologies (NASDAQ: SOFI) and PayPal (NASDAQ: PYPL). Here’s why.

    Image source: Getty Images.

    SoFi has expanded quickly over the years, adding new services and financial offerings that now include loans, investing, checking and savings accounts, loan refinancing, credit cards, and even estate planning.

    To put SoFi’s growth in perspective, consider that the company had over 1 million members at the beginning of 2020. In December, it announced that it now has more than 10 million members — a 9x membership increase in just five years.

    SoFi’s strong membership base has translated into impressive financial results. The company increased sales by 30% in 2024’s third quarter to $697 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 90% to $186.2 million.

    SoFi’s stock has been on a massive run over the past six months, rising 137% as of this writing. The gains have driven up the premium for SoFi’s shares, which now have a forward price-to-earnings (P/E) of 74. That’s expensive by any measure, but starting a small position could be smart for long-term investors who want to own a piece of a fintech leader.

    Some investors may overlook PayPal when seeking fast-growing fintech companies, but this large fintech player likely still has more growth ahead. The company’s person-to-person payment app, Venmo, is a great example of how PayPal is willing to look to new areas for growth. Venmo is one of the leading payment apps, with an estimated 88 million users, up from 52 million in 2020.

    PayPal’s revenue rose 6% in 2024’s third quarter to $7.8 billion, and its non-GAAP earnings spiked 22% to $1.20 per share. It also ended the quarter with $1.4 billion in free cash flow and $16.2 billion in cash and cash equivalents.

    The company’s 432 million global users are a testament to PayPal’s leading position in fintech. Its 9% increase in total payment volume in Q3, to $422.6 billion, proves that the company knows how to get its users to continue using its payment platforms.

    Investors looking for a good deal and a cheaper fintech stock than SoFi would be wise to consider PayPal right now. The company’s shares have a forward P/E ratio of just 17.8, far below the S&P 500 average of 23.7.

    It’s worth mentioning that fintech stocks can sometimes be volatile, so if you’re new to this investing segment, it’s probably best to start with a small position and slowly add to it over time.

    Before you buy stock in SoFi Technologies, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $858,668!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of January 6, 2025

    Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2025 $85 calls on PayPal. The Motley Fool has a disclosure policy.

    2 Top Fintech Stocks to Buy in January was originally published by The Motley Fool



    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleFed Governor Bowman says December interest rate cut should be the last
    Next Article DirecTV challenges dismissal of Fubo’s claims against Venu Sports By Reuters
    user
    • Website

    Related Posts

    What Does It Mean to Be Risk Neutral as an Investor?

    January 18, 2025

    SLB boosts dividend and buybacks, but warns of oil oversupply

    January 17, 2025

    Intel Stock Soars as Takeover Speculation Spreads

    January 17, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d