7 fintech stocks to watch as demand for on-the-go services grows

Highlights

  • SoFi Technologies Inc (NASDAQ: SOFI) stock grew by 20.58% YTD.
  • PayPal Holdings Inc (NASDAQ: PYPL) has a P/E ratio of 68.29. The stock rose 19.77% YTD.
  • Goldman Sachs (NYSE: GS) plans to launch a fellowship program for small businesses; the stock gave a 55.19% return YTD.

Fintech companies are technology-driven financial businesses that offer a range of services on the go, like payment processing and various other online banking needs. Today, more companies are adopting technologies to scale up their businesses and stay ahead of the race.

Here we discuss seven fintech companies that have been in focus.

SoFi Technologies, Inc. (NASDAQ: SOFI)

Sofi operates an online platform and a mobile app to provide various financial services, including loans, banking, financial planning, etc., to clients.

The San Francisco, California-based SoFi Technologies has a market cap of US$12 billion.

For the June quarter of 2021, the company earned GAAP revenue of US$231.27 million compared to US$114.95 million for the same period a year ago. The net loss was US$(165.31) million against a net income of US$7.81 million in the June quarter of 2020.

The stock grew by 20.58% YTD. It closed at US$15.29 on Sep 10.

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PayPal Holdings, Inc. (NASDAQ: PYPL)

It is an electronic payment solutions provider. Its customers include individual clients and merchants worldwide. Its market capitalization is US$328.98 billion, and the P/E ratio is 68.29.

The San Jose, California-based company reported revenue of US$6.24 billion and net income of US$1.18 billion for the June quarter of 2021. For the same period in the previous year, the revenue and net income were US$5.26 billion and US$1.53 billion, respectively.

On Sep 7, Paypal announced to acquire Paidy, a payments platform in Japan.

The stock closed at US$284.32 on Sep 10. It rose 19.77% YTD.

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Square, Inc. (NYSE: SQ)

Square is a payment technology company based in San Francisco, California. It has a market capitalization of US$113.3 billion and a P/E ratio of 216.25.

Square’s revenue for the June quarter of 2021 was US$4.68 billion. The revenue included transaction- and service-based, and proceeds from hardware and bitcoin. Its net income was US$203.68 million against a net loss of US$11.48 million in the year-ago quarter.

On Sep 9, Square announced a 10-year partnership with SoFi Stadium for PoS, payment, and merchant services. The stock surged 13.34% YTD. The stock price was US$247.9 on Sep 10.

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Mastercard Incorporated (NYSE: MA)

It is one of the world’s largest payment processors. The New York-based company has a market capitalization of US$343.4 billion and a P/E ratio of 48.34. Its current dividend yield is 0.51%.

For the June quarter of 2021, the revenue was US$4.53 billion and net income was US$2.07 billion. In the corresponding quarter of 2020, the revenue and net income were US$3.34 billion and US$1.42 billion, respectively.

Mastercard SpendingPulse, a platform that measures the overall US retail sales, said on Monday that it expects retail sales to grow by 7.4% during the upcoming holiday season.

The stock fell 2.56% YTD. The stock closed at US$48.34 on Sep 10.

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Green Dot Corporation (NYSE: GDOT)

Green Dot provides financial services excluding banking to US customers. The Pasadena, California-based company has a market cap of US$2.7 billion and a P/E ratio of 125.2.

Its revenue was US$369.37 million and net income was US$24.9 million for the June quarter this year. In the same period of 2020, the revenue was US$316.24 million and net income was US$3.29 million.

On September 2, it announced the investment in a research initiative to study the financial insecurities of the non-traditional workforce.

The stock fell 10.25% YTD and it closed at US$50.38 on Sep 10, 2021.

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Goldman Sachs Group, Inc. (NYSE: GS)

It is a well-known investment banking company with four broad business segments: investment banking, consumer and wealth management, asset management, and global market.

It is based in New York and has a market capitalization of US$138 billion, with a P/E of 7.39.

For the June quarter of 2021, its revenue was US$15.39 billion compared to US$13.3 billion in the previous year’s June quarter. The net income was US$5.49 billion compared to US$373 million in the corresponding quarter a year ago.

On Monday, the company launched a fellowship program for 10,000 small businesses to improve the skill gap. Its YTD return is 55.19%. The stock closed at US$403.48 on Sep 10.

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Intuit Inc. (NASDAQ: INTU)

It is a technology company and provides software for accounting and tax solutions. The California-based company has a market cap of US$152 billion, and its P/E ratio is 74.42.

For the fiscal year ended July 31, 2021, the revenue was US$9.6 billion, a 25% increase YoY compared to US$7.7 billion for FY 2020. The net income was US$2.06 billion in FY 2021 against US$1.82 billion in FY 2020.

On Monday, the company announced to acquire Mailchimp, a customer engagement and marketing platform for emerging businesses.

The stock closed at US$567.38 on Sep 10, and it grew 46.77% YTD.

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Bottomline

The fintech companies have registered robust growth in recent months as demand for on-the-go services rose. The sector is expected to continue that growth momentum in the coming quarters. However, investors must evaluate the companies carefully before investing.

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