2 Top Fintech Stocks to Buy in January

Financial technology (FinTech) is the fastest growing part of the broader financial sector and the revenue generated by companies in this space can be significant. BCG estimates put the global fintech market at $1.5 trillion in sales by 2030.

Of course, this is only an estimate, but it is a good indicator of why companies are competing to be on the cutting edge. fintech Services. These are two such companies that are already well-positioned to benefit as fintech grows. SOPHIE TECHNOLOGIES (NASDAQ: SOFI ) And PayPal (NASDAQ: PYPL ). This is the reason.

SoFi has expanded rapidly over the years, now adding new services and financial offerings, including loans, investing, checking and savings accounts, loan modification, credit cards and estate planning.

To put SoFi’s growth in perspective, the company in 2016 Consider that at the beginning of 2020 it had over 1 million members. In December, he announced that he now has more. 10 million Members — 9x membership increase in five years.

Sophie’s strong membership base has translated into impressive financial results. The company grew sales by 30% to $697 million in the third quarter of 2024, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 90% to $186.2 million.

Sophie’s stock has been performing strongly over the past six months, rising 137% year to date. The gains have boosted the premium on SoFi shares, now at a forward price-to-earnings (P/E) of 74. That’s expensive by any measure, but it could be smart for long-term investors who want to start small. To own a piece of the fintech leader.

Some investors may overlook PayPal when looking for fast-growing fintech companies, but this big fintech player may have even more growth ahead. The company’s person-to-person payments app, Venmo, is a good example of how PayPal is willing to explore new areas for growth. Venmo is one of the leading payment apps with an estimated 88 million payment apps with 52 million users in 2020.

PayPal’s revenue rose 6 percent to $7.8 billion in the third quarter of 2024, and non-GAAP earnings per share rose 22 percent to $1.20. It ended the quarter with $1.4 billion in free cash flow and $16.2 billion in cash and cash equivalents.

The company’s 432 million global users are testament to PayPal’s leading position in fintech. The 9% increase in total payment volume in Q3 to $422.6 billion proves that the company knows how to keep its users using payment platforms.

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