In the ever-evolving financial realm, fintech stocks with big money continue to grab investors’ attention.
The fintech industry has undergone a radical shift, evolving into an epicenter of innovation, with automation and AI at its helm. Additionally, spearheaded by the meteoric rise of digital banking and the e-commerce boom, this trend is hard to ignore. In fact, Statista predicts that the global fintech market could grow at a compound annual growth rate of 13.11% by 2027.
Nevertheless, managing this burgeoning market might seem challenging for the everyday retail investor. However, like all growth sectors, fintech has yet to be immune to market headwinds. But with an incredible growth trajectory ahead, these three fintech stocks are gearing up as the next big-ticket investments for the long haul.
PayPal Holdings (PYPL)
One of the top-tier fintech stocks, PayPal Holdings (NASDAQ:PYPL) has emerged as a beacon of trust for institutional investors. The recent quarter illuminated this faith with big money scooping up 71.9 million shares of its shares.
Major financial stalwarts, such as Pollen Capital Management and Norges Bank, augmented their portfolios with purchases worth $9.64 million and $2.6 million, respectively. Complementing this trend, both Deutsche Bank and Nuveen Asset Management leaped in with noteworthy acquisitions.
Moreover, PayPal’s financial health continues its robust performance. The company posted a second-quarter 2023 revenue of a staggering $7.4 billion, comfortably surpassing analysts’ projections by about $50 million. Furthermore, its earnings per share stood at an impressive $1.17, outshining predictions by $1.10. Additionally, PayPal expects $5 billion in buybacks. With TipRanks analysts pegging the average price target at a promising $87.38 with a 39.9% upside, PYPL solidifies its status as a fintech giant.
Block (SQ)
In the unpredictable realm of finance, it’s easy to get caught up in the highs and lows. Recently, Block‘s (NYSE:SQ) stock took a little tumble, prompting concerns.
However, Block is still humming with promise. Reflecting this confidence, institutions added an astounding 49.91 million shares to their portfolios last quarter. Powerhouses such as BlackRock Inc. and Norges Bank jumped in with a massive shareholdings increase in the stock, hinting at the stock’s bright prospects.
Moreover, Block’s Q2 revenue clocked in at a whopping $5.53 billion, comfortably outpacing last year’s figures and expert predictions. Moreover, their main revenue sources, Cash App and Square, reported gross profits that soared by 37% and 18% year over year (YOY).
Additionally, the company is consistently expanding its horizon. SQ rolled out new features along with an unwavering commitment to equipping businesses with robust tools. Block presents a future of standing tall amidst its peers.
Lemonade (LMND)
In the bustling insurance tech landscape, Lemonade (NYSE:LMND) stands out as a trailblazer. The firm is effectively harnessing the power of artificial intelligence to revolutionize underwriting. This innovative approach led the company to a whopping 109% increase in sales compared to the same quarter a year ago.
Meanwhile, institutional confidence in Lemonade is palpable as a hefty 4.4 million shares were scooped up last quarter. Notably, industry titans such as Vanguard Group and Millennium Management made substantial share acquisitions. This bullish sentiment is echoed by TipRanks Analysts. The experts foresee an enticing average price target of $19.33, suggesting an impressive 37.5% upside.
Furthermore, Lemonade’s growing appeal is evident in its expanding customer base, which jumped 21% YOY to 1.9 million. All signs indicate that Lemonade’s AI-driven approach is delighting current users and drawing new ones, setting a refreshing standard in the sector.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
