Should Investors Consider Buying These Hot Fintech Stocks This Month?
While most of the top growth stocks from 2020 continue to recover from the recent tech stock pullbacks, digital payment stocks remain in focus. Understandably, this is because of the vital role these companies have played over the past year. Amidst the current pandemic, the adoption of digital payments has and continues to accelerate at breakneck speeds. Furthermore, another growing trend in the overall fintech sector now would be cryptocurrencies. While hot digital currencies such as Bitcoin may be making headlines, volatility would be a concern amongst more conservative investors. As a result, many traders would prefer to bet on the best fintech stocks in the stock market that facilitate this trend instead. Given all of this, it makes sense that investors would look for the top digital payment stocks now.
Take fintech giants Mastercard (NYSE: MA) and Visa (NYSE: V) for example. Within the past month, both companies announced plans to support cryptocurrency-related transactions on their networks. While adapting to shifting consumer spending trends, these companies would be bolstering cryptocurrency adoption as well. All in all, this cycle could continue to fuel the digital payment industry for the foreseeable future. Besides, mainstream companies such as Microsoft (NASDAQ: MSFT) and Tesla (NASDAQ: TSLA) are already accepting Bitcoin payments. Would investing in one of these top fintech stocks be a good play now?
Top Digital Payment Stocks To Buy [Or Sell]
- Square Inc. (NYSE: SQ)
- PayPal Holdings Inc. (NASDAQ: PYPL)
- Future Fintech Group Inc. (NASDAQ: FTFT)
- Sea Limited (NYSE: SE)
Square is a financial services and digital payments company that is based in San Francisco. It provides a commerce ecosystem that enables its sellers to start, run, and grow their businesses. In essence, it combines software with hardware to enable sellers to turn their mobile and computing devices into payments and point-of-sale solutions. SQ stock currently trades at $264.43 as of 1:56 p.m. ET and has been up by over 300% in the last year. Last month, new Square data reveals the share of cashless businesses has more than doubled. This is unsurprising given how at the onset of the pandemic, there has been a steady increase in cashless adoption rates and contactless payments.
If anything, the pandemic had accelerated this shift to digital payments. Last week, Square had also announced an Early Access Programme in Ireland. This marks the first time that Square is available to Irish merchants. In February, the company posted its fourth-quarter financials. Square reported a quarterly gross profit of $804 million, up by 52% year-over-year. The company’s Cash App delivered strong growth, with a gross profit of $377 million, a staggering 162% year-over-year increase. Cash App also continues to drive strong acquisition of new customers while retaining existing ones.
In December, Cash App had more than 36 million monthly transacting active customers, a 50% increase year-over-year. Impressively, its Seller ecosystem generated a gross profit of $427 million, up by 13% compared to a year earlier. Given the impressive financials, will you consider buying SQ stock?
PayPal is a digital payments stock that has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more affordable and secure, PayPal’s platform empowers more than 300 million consumers and merchants. PYPL stock currently trades at $267.40 as of 1:56 p.m. ET and been up by over 130% in the last year.
Last month, the company announced the launch of Checkout with Crypto, a new feature that significantly expands the utility of cryptocurrency. The service will be available for millions of global online businesses and continue to expand over the coming months. PayPal customers with cryptocurrency holdings in the U.S. will be able to check out with crypto effortlessly within PayPal.
Given the rise of cryptocurrencies this year, the company continues to capitalize on this market. PayPal would also be driving the mainstream adoption of cryptocurrencies by introducing this new feature. With such exciting developments surrounding PayPal’s new feature, will you consider buying PYPL stock?
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Future Fintech Group Inc.
Future Fintech is a leading blockchain-based e-commerce company and a service provider for financial technology that is incorporated in Florida. The company’s operations include a blockchain-based online shopping mall platform, known as Chain Cloud Mall. The company also has a cross-border e-commerce platform and is also engaged in the development of blockchain-based e-commerce technology. FTFT stock currently trades at $4.92 as of 1:57 p.m. ET and is up by over 180% year-to-date.
Today the company announced that it has entered into an amendment agreement to acquire Nice Talent Asset Management (NTAM), a Hong Kong-based asset management company. NTAM’s current business partners include major international banks and its clients range from well-established institutional funds to high net worth retail customers.
By acquiring NTAM, Future Fintech continues to expand its portfolio of financial services. It will also mark a huge milestone in the company’s ongoing expansion into global financial services. Ultimately, Future Fintech will synergize both company’s strengths to offer best-in-class asset management and investment consulting services for customers in Hong Kong. All things considered, will you buy FTFT stock?
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Last but not least, we have Singaporean e-commerce giant, Sea Limited. For some context, Sea Limited is one of, if not, the leading consumer internet company in the Southeast Asian market. The company primarily operates via its three core businesses. They are its digital entertainment, e-commerce, and digital payments, divisions. Specifically, Sea Limited’s SeaMoney is a leading provider of digital payments and financial services in Southeast Asia.
Notably, all of the company’s core divisions have and continue to benefit from consumer spending trends amidst the current pandemic. Because of this, I could see SE stock becoming a go-to for investors even now. Evidently, the company’s shares are currently looking at gains of over 400% in the past year.
Despite all this, investors still seem to be bullish on SE stock. We can see this as Cathie Wood’s recently added the stock to her fintech exchange-traded fund (ETF). In detail, Wood’s ARK Fintech Innovation ETF (NYSEAMERICAN: ARKF) bought over 20,000 shares of SE stock in late March. This would make it the fifth-largest holding in the ETF now at roughly 4.44% of the $1.96 billion fund. On account of this purchase, I could see other investors continue to follow suit. Could this mean that SE stock still has room to grow moving forward?