3 Top Fintech Stocks To Keep An Eye On Today
While investors consider why are stocks down today, fintech stocks continue to make plays in the stock market. Before going into the details, just what are fintech stocks might you ask? Well, for the most part, the industry is home to companies that provide financial services digitally. By facilitating contactless transactions among other key financial solutions throughout the pandemic, fintechs continue to thrive. So much so that fintech stocks have and continue to gain attention in the stock market today.
Notably, there is no shortage of options for investors to consider when it comes to investing in fintech stocks. This is evident from mainstays such as PayPal (NASDAQ: PYPL) and Square (NYSE SQ) to newcomers like Nubank and Grab (NASDAQ: GRAB). On one hand, industry leads like PayPal continue to solidify their position in the market. Namely, the company is currently working with Amazon (NASDAQ: AMZN). As of last month, the duo are now looking to facilitate Venmo at checkout for Amazon shoppers. Given the sheer scale of this partnership, investors could be watching both of these tech firms closely now.
On the other hand, emerging players like Nubank and Grab should not be overlooked as well. Both firms are massive fintech names in their respective core markets. Additionally, both companies are among the latest contenders in the global fintech industry today. All in all, the fintech industry remains as busy as ever amidst the current pandemic. Should you be keen on getting in on the action, here are three top fintech stocks to consider in the stock market today.
Top Fintech Stocks To Buy [Or Sell] In December 2021
Nu Holdings Ltd
Nu Holdings is one of the largest fintech banks in Latin America. The company raised $2.6 billion in a U.S. IPO priced at $9 per share and solder 289 million shares on Wednesday. The company is backed by Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A). Berkshire has bought 10% of the shares in the offering, said a person familiar with the matter. NU stock, at its IPO price, has a market value of $41 billion based on the outstanding shares listed in its filings with the U.S. SEC.
This would make the company’s IPO the most valuable financial institution in Latin America, surpassing Itau Unibanco Holding SA, with a $38 billion valuation. To highlight, NU stock opened at an IPO price of $9.00 a share. The company was founded in 2013 and offers consumers digital accounts and international credit cards without any additional fees. Furthermore, the company offers a wide portfolio of financial solutions and has an integrated mobile app. This comes at a time when developing countries in Latin America continue to rely more on fintech services and Nu Holdings could well capitalize on this growing market.
In fact, Nubank currently serves over 45 million customers across its network of operations. In its most recent quarter, the company also notes that it saw a net gain of 2 million customers across Brazil, Colombia, and Mexico. Even with these numbers, the company estimates that its serviceable addressable market for 2020 sits at $99 billion. The company believes this will grow at a compound annual growth rate (CAGR) of 5% till 2025. Should this be the case, Nubank could potentially be looking at a SAM of $126 billion by then. Given this piece of news, is NU stock worth investing in today?
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Visa Inc.
Next, we have Visa, a multinational fintech company. In essence, the company facilitates electronic funds transfers throughout the world. The global payments technology company connects businesses, banks, and consumers in more than 200 countries and territories. It also provides one of the most innovative, reliable, and secure payment networks in the world. Also, Visa’s advanced global processing network is VisaNet and is capable of handling more than 65,000 transaction messages a second. V stock currently trades at $211.07 as of 2:43 p.m. ET.
On Wednesday, the company announced the launch of Visa’s Global Crypto Advisory Practice to help clients and partners advance their own crypto journey. Overall, the current move makes sense given the rising popularity of crypto-related services. For starters, financial institutions looking to attract customers with crypto offerings and retailers looking to delve into NFTs would be key clients. Accordingly, understanding how the crypto ecosystem works is a vital first step for these parties. Visa hopes to bridge this gap through its global network of consultants and product experts. It also has experience with more than 60 crypto platforms.
This comes at a time when crypto represents a technological shift for money movement and digital ownership. As consumers change their approach to investing, Visa hopes that it can further mainstream the adoption of bitcoin and other digital currencies. All things considered, is V stock a top fintech stock to add to your portfolio?
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Sea Limited
Sea Limited is a global consumer internet company with headquarters in Singapore. It operates three core businesses across digital entertainment, e-commerce, and digital payments/financial services. They are known as Garena, Shopee, and SeaMoney respectively. SeaMoney is a leading digital payments and financial services provider in Southeast Asia. SE stock currently trades at $252.78 as of 2:44 p.m. ET.
Last month, the company reported a strong third quarter. Diving in, total GAAP revenue was $2.7 billion, up by 121.8% year-over-year. Total gross profit for the quarter was $1 billion, increasing by 147.5% compared to a year earlier. The company also saw its e-commerce GAAP revenue more than doubling at $1.5 billion. In Southeast Asia and Taiwan respectively, Shopee continued to rank first in the Shopping category by average monthly active users and total time spent in-app for the third quarter of 2021.
The company also says that it continues to see strong growth in the adoption of its SeaMoney’s offerings. Total payment volume for its mobile wallet was $4.6 billion for the third quarter, increasing by 111% year-over-year. Furthermore, quarterly paying users for its mobile wallet services increased to $39.3 million for the quarter. Given the impressive momentum, Sea says it will be raising its guidance for e-commerce for the second time for the full year of 2021. It now expects a GAAP revenue for e-commerce to be between $5 billion to $5.2 billion, representing a 135.3% growth from 2020 at the midpoint of the revised guidance. For these reasons, will you buy SE stock?
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