The company has been tapped as a high-growth stock for the next few years. However, the Cash App is slightly different in that it allows users to invest in stocks and cryptocurrency. Square’s payment processing system sees billions of dollars in transactions every year. While it may not be the cheapest company on the market, there’s still huge potential for long-term growth to continue. This company is relatively small when compared to some of the other stocks on this list.
Top-Rated Fintech Stocks That Analysts Are Loving Now
The other fintech stock to buy as part of a $1,000 investment is Block (XYZ -0.49%). Posting 9% gross profit growth in Q1 is Square, which caters specifically to the financial needs of merchants. On the other side is Cash App, a popular personal finance app with 57 million monthly active users that’s growing even faster than Square. Discover the top fintech stocks, ranked by our advanced AI Score, featuring innovators like Square, PayPal, and Adyen. The fintech sector, at the crossroads of technology and finance, is reshaping industries and creating unique investment opportunities.
PayPal
In response, the value of the fintech stock surged from US$62.80 to US$90.43 per share. The company offers digital banking services through its mobile banking app, launched in 2017. Its offerings include the Dave Debit Card through a license from Mastercard, and its ExtraCash cash advance program. The company’s share price continued to climb, hitting US$170.59 by the end of the third quarter. After releasing its stellar Q financial report on November 7, which showed total revenue growth up 71.3 percent year-over-year, its stock value skyrocketed from US$250.47 to US$431.48 in one day. Assessing a firm’s total addressable market (TAM) helps gauge a fintech’s potential future Fintech stocks revenue.
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MercadoLibre also has a tool called MercadoShops, which small businesses can use to make sales directly from their websites. However, they have massive potential for growth, especially with their BaaS product. It is known for launching one of the first pre-paid debit cards back in 1999. Such opportunities could involve blockchain technology or decentralized finance. There’s even a Visa debit card consumers can use to spend crypto and earn rewards.
The following month, Root’s stock value had more than doubled to US$82.90 on April 5. Dave’s share price has benefited greatly over the past year from the company’s record-setting growth quarter after quarter. In May 2024, its Q financial report highlighted record revenue of US$73.6 million, up 25 percent year-over-year. The company’s share price jumped over 12 percent in one day to US$52.30 on May 7. But the Federal Reserve finally cut its benchmark rates in September as inflation cooled off. UP Fintech Holding Limited provides online brokerage services focusing on Chinese investors.
The Market’s “1,000% Gain” Lie
Given the soaring demand for green energy and the massive investments in the sector from the Inflation Reduction Act of 2022, it could be worth even more for future rounds. From apps and software to algorithms and artificial intelligence, fintech fuses two of the biggest and richest sectors of the economy, finance and tech. As you might imagine, this makes for an extremely valuable class of companies. But after valuations soared to record levels in 2021, most have come down to earth more recently. One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.
Each has its own unique standing in the market, which you can track and list of best stocks above. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on…
These factors are driving growth and supporting the demand for innovative payment solutions, embedded finance, and secure transaction technologies. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. To compile our list of the 11 best fintech stocks to buy right now, we looked for the biggest fintech companies. Next, we focused on the top 11 stocks most favored by institutional investors.
- With more than $11 billion in cash and investments on the balance sheet and about $5 billion in annualized free cash flow, PayPal has the financial flexibility to pursue opportunities as they arise.
- We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks.
- Finally, we ranked the 10 best-performing fintech stocks to buy based on their average price target upside potential according to analysts as of February 26, 2025.
- Finally, a fintech’s present user base and traction are indicators of potential success.
- Short for financial technology, fintech is nothing more than the application of technology to improve financial services.
Further, PayPal is pursuing efforts that have a strong chance of paying off, such as cost-cutting, along with share repurchases totaling $5 billion. This means there’s a huge market for both B2B and B2C fintech products. Many small businesses that would have accepted cash in the past are now making the move to go cashless. Its stock has been trading sideways throughout the summer but has seen substantial increases in revenue and net income. Investing apps have become very popular in the United States, so it’s no surprise that Chinese companies want to get in on the action. These apps allow for a better trading experience through zero commissions, extended hours, and more.
Many of the top fintech stocks offer mobile-friendly money management solutions. AI is being adopted increasingly in financial markets, specifically regarding investment decision-making. Pre-AI, advanced data analytics, real-time algorithmic trading, and sentiment analysis were terms… SoFi stock is trading below $15 and looks set to fall further today as markets react to the tensions in the Middle East. The dip might be an opportunity to add positions in the fintech company. The best fintech stocks are identified based on the AI score, a dynamic metric calculated using a smart algorithm that analyzes financial, technical, and alternative data.
Plaid works as an intermediary between your financial accounts and apps. This lets you connect your bank account to these apps while keeping your information secure. Betterment, Chime and Venmo all rely on Plaid to connect their users’ other financial accounts. According to the company, 12,000 financial institutions are connected via Plaid. The secured Chime Credit Builder Credit Card is issued by The Bancorp Bank, N.A.
MercadoLibre (MELI)
- PayPal has a completely new executive leadership team that has been quite active when it comes to looking for ways to reinvigorate the business’ growth.
- Yes, it can be scary to trust PayPal as your only form of payment, but it’s been around for years and has had no major security breaches yet that we know of.
- For the September quarter, the company reported solid growth in areas like gross profit up 21% year over year (YOY) and adjusted EBITDA, up by near 45.9%.
- If Upstart pulls off that recovery as interest rates cool off, it might be an undervalued growth play at 6 times next year’s sales.
- But, unlike the other major payment processing tech companies, Adyen focuses almost exclusively on large businesses.
Plus, Adyen is highly profitable, with a 46% earnings before interest, taxes, depreciation, and amortization (EBITDA) margin that could get even better as the business scales. PayPal Holdings (PYPL 1.14%) is the undisputed leader in online payments — and so much more. Its Venmo person-to-person payment platform has emerged as an industry leader, and its namesake PayPal brand continues to innovate the ways we pay for things both online and off. However, so far in 2023, fintechs have largely begun a recovery again.