Due to the increasing demands of consumers regarding managing money, making payments, and accessing credit with minimum hassle, the fintech industry is gaining momentum as it integrates financial services within non-financial environments. According to some reports…
nearly 90% of Americans use fintech applications to manage their financial lives.
Neo banks, buy-now-pay-later (BNPL), embedded finance, digital banking, platform-as-a-services (PaaS) solutions, and several other fintech trends are expected to fuel the industry’s growth this year. The global financial services market is expected to reach $26.5 trillion this year, and the global fintech market is expected to grow at a23.58% CAGR through 2025.
Given this backdrop, Wall Street analysts expect fintech stocks Block, Inc. (SQ – Get Rating), Affirm Holdings, Inc. (AFRM – Get Rating), Robinhood Markets, Inc. (HOOD – Get Rating), and Upstart Holdings, Inc. (UPST – Get Rating) to soar in price in the coming months due to their solid growth prospects.
SQ is a San Francisco-based technology company that focuses on financial services that enable sellers to accept card payments and provide reporting, analytics, and next-day settlement. The company’s building blocks comprise Square, Cash App, Spiral, TIDAL, and TBD54566975. SQ also offers various software products, including Square Point of Sale; Square Appointments; Square for Retail; and other online platforms and dashboards.
This month, SQ launched on-demand delivery for Square Online orders in Canada through DoorDash Drive, DoorDash’s white-label fulfillment platform that powers direct delivery for any business. Through this delivery service, SQ has provided a new solution for Canada’s food and beverage industry to maximize its business in 2022.
SQ’s total net revenue increased 26.7% year-over-year to $3.84 billion for the third quarter, ended Sept. 30, 2021. The company’s gross profit grew 42.6% from its year-ago value to $1.13 billion. And its operating income came in at $22.99 million.
Analysts expect SQ’s revenue to increase 5.8% year-over-year to $18.66 billion in its fiscal 2022. The company has an impressive earnings surprise history; it has beaten the consensus EPS estimates in three of the trailing four quarters. Its EPS is estimated to grow 101.2% in fiscal 2021 and 9.5% in fiscal 2022.
Closing yesterday’s trading session at $117.3, the $257.59 average analyst price target represents a 119.6% potential gain.
AFRM is a digital and mobile commerce platform in the United States and Canada. The San Francisco-based company offers a technology-driven payments network that allows consumers to pay, select repayment options, and issue loans. Also, AFRM’s platform includes three elements—a point-of-sale payment solution, merchant commerce solutions, and a consumer-focused application.
AFRM’s total revenue increased 54.8% year-over-year to $269.39 million for its fiscal first quarter. The company’s interest income grew 116.3% from the year-ago value to $117.3 million. Also, its cash and cash equivalents were $1.44 billion during the period.
AFRM’s revenue is expected to increase 46.2% year-over-year to $1.27 billion in its fiscal year 2022. Its EPS is estimated to grow 21.7% in fiscal 2021 and 42.7% next year.
The $130.77 consensus price target represents a 124.5% potential gain from its $58.25 last closing price.
HOOD in Menlo Park, Calif., is a financial service platform that allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company’s platform offers trading in U.S.-listed stocks and ETFs and related options, and American depositary receipts (ADRs), and cryptocurrency trading through its subsidiary, Robinhood Crypto, LLC (RHC). In addition…
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