The article discusses seven fintech stocks that should be on investors’ radar in 2024. These stocks are expected to benefit from the trend of the “future of finance” as the macro picture improves and interest rates decrease. The key fintech stocks highlighted in the article include:
- Adyen (ADYEY): A rising star among digital payments companies that could grow into its valuation if it meets its financial objectives.
- Fiserv (FI): A payment processing solutions company with exposure to the digital payments trend and potential for earnings growth and multiple expansion.
- Shift4 Payments (FOUR): A digital payment company that has recently seen positive developments, including strong quarterly earnings and takeover speculation.
- Nu Holdings (NU): The parent company of Nubank, a digital financial services firm, which has experienced high growth and profitability despite challenges like high interest rates.
- OppFi (OPFI): A provider of credit products like installment loans that has recently reported better-than-expected earnings and could see a higher valuation if macro conditions improve.
- Pagaya Technologies (PGY): A provider of AI-powered loan origination software that has made progress in areas like loan securitization and could experience a jump in profitability in 2024.
- SoFi Technologies (SOFI): A neobank that is scaling up rapidly and expected to achieve GAAP profitability, with potential for outsized earnings growth and long-term success.
The article notes that while some of these stocks may be well-known and have higher valuations, they still offer strong long-term opportunities in the fintech sector. The improving macro picture, including lower interest rates, is expected to support the growth of these companies in 2024.
