It reevaluated internally and determined its current valuation is $11 billion, a significant drop from the $40 billion it was estimated to be worth in 2021. Bolt had a valuation of $11 billion during its last round of fundraising when it brought in $355 million. However, it has struggled and laid off about half of its workforce since then. Bolt’s market cap could be far lower than the past official valuation. It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.
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This bottom-line performance lets management spend sizable amounts on share repurchases, to the tune of a planned $6 billion in 2025. During the 2021 post-pandemic bull market, FOUR stock was a high-flier among fintechs. That was mainly due to its exposure to e-Commerce and hospitality industries benefiting the most from the lockdowns. However, shares were hit especially hard when economic challenges began to emerge later that year. Founded in 2015, Root is the parent company of Root Insurance Company, which through the Root app brings data science and technology to the auto insurance market.
- Whenever you have a high-growth and relatively young industry, it can seem intimidating for investors to try choosing one or two stocks.
- Shares in Root grew by nearly 69 percent from US$40.49 on October 30 to US$68.39 on October 31.
- Block now processes payments for merchants at an annualized rate of about $240 billion, has its own banking subsidiary (Square Financial Services), and a thriving small business lending platform.
- You may recall that eBay dropped PayPal as its preferred payment processor several years ago; that was in favor of Adyen.
PayPal (NASDAQ: PYPL)
- These alerts serve as your proactive guide, ensuring you’re always in the loop about emerging trends and conversations, and enabling you to capitalize on potential opportunities as they arise.
- Additionally, fintech companies often have innovative business models that can disrupt traditional financial services, offering significant upside potential.
- This company is relatively small when compared to some of the other stocks on this list.
- I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
The company has a highly profitable business model and is valued at over $1.9 billion. Zuora won the 2020 CODiE Award for Best Subscription Billing Solution. Brex provides business banking services through its platform and technology.
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Futu operates two investing apps – Futubull in Asia and Moomoo in the United States. Square seems committed to expanding its suite of products and acquiring smaller companies in the fintech space. It also has innovative hardware products, including a card reader for smartphones and a point of sale system that works with the Apple iPad.
Its platform allows for the collecting, storing, lending and sending of money. The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications.
Five top fintech stock investments in 2025
Find companies with exciting products and excellent financials for the best possible investment choices for your portfolio. Funding history and potential dilution effects on existing shareholders are key considerations in private company valuations. A fintech’s past funding rounds and the amount of equity already issued strongly influence its total current valuation.
For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 Fintech stocks stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1009 hedge funds in Q to gauge hedge fund sentiment for stocks. We have used the stock’s revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Stock Lists
You might be surprised at how many cash-based transactions are still happening around the world, and how many people still have their savings at brick-and-mortar banks that barely pay any interest. The table below shows the list of stocks, sorted by market capitalisation. You can change the sorting order by clicking on the respective column header. Also, Fiserv Inc. provides financial institutions with the back-end technology necessary to facilitate digital financial transactions. On October 30, the company released its Q financials, highlighting its second highest revenues on record (up 36 percent year-over-year to US$637 million). Additionally, its year-to-date net deposits of US$34 billion and year-to-date revenues of US$1.94 billion were both higher than any prior full year period.
This includes corporate credit cards, expense management, bill payment, and travel bookings. A business can supervise and manage spending for the company and its employees through this platform. It offers cash management accounts and venture debt, a type of financing for startup companies. Rapyd is an Israeli fintech company that specializes in global payment services. Through the Rapyd platform, customers can send funds across country borders through debit/credit cards, bank transfers, digital wallets, and cash. Rapyd handles payouts in over 190 countries and works to lower the cost of transaction and foreign exchange (FX) fees compared to the traditional banking system.
That makes it an attractive option for customers who can’t get approved for credit cards, and it usually charges merchants lower fees than traditional card payment networks. Finally, if you’re considering an investment in an unlisted fintech company, make sure to do your due diligence. Look first at the business model to make sure that it has a good chance of being profitable, and see how quickly this company can pay its investors back. Evaluate the company’s IP holdings and determine how they’re going to protect their IP from potential hackers or competitors who want to steal it from them.
How to Escape the ‘Tyranny of the Immediate’ in Investing
Add in a raising of guidance, and it’s clear the release resulted in a post-earnings rally for SQ stock. Out of 11 analysts covering MELI, 10 rate the stock as a buy or the equivalent to buy. While sporting a rich valuation of 70 times forward earnings, confident investors consider it a top fintech stock to buy. Flash forward to now, though, and Shift4 Payments is flying high again. The stock price spiked earlier this month, after releasing a “beat and raise” quarterly earnings report.
The company also offers mobile banking products, including a high yield savings account option. Getting notified when a stock gains momentum is a seamless process on our platform. By signing up, you can activate stock alerts that swiftly bring your attention to stocks that experience an impactful across any of the datasets that we are monitoring. These alerts serve as your proactive guide, ensuring you’re always in the loop about emerging trends and conversations, and enabling you to capitalize on potential opportunities as they arise. Yes, it can be scary to trust PayPal as your only form of payment, but it’s been around for years and has had no major security breaches yet that we know of. Its financials are always readily available on its website and look very strong overall.