The field of fintech is experiencing rapid expansion, offering attractive investment opportunities for those who know where to look. This month, two companies stand out for their growth potential and remarkable innovation capability. These fintech stocks promise to shake up the market and generate interesting returns for savvy investors. By carefully monitoring market movements, one can uncover these hidden gems and secure a place in the fascinating evolution of financial technologies.
Sofi and its meteoric rise
In the world of fintech, SoFi stands out for its rapid and diverse growth. Having started in student loan refinancing, this company now offers a wide range of financial services. In 2024, SoFi saw its revenue increase by 26%, reaching $2.6 billion, with adjusted earnings rising from -$0.10 to $0.15 per share. With a one-stop-shop strategy attracting over 10 million members, SoFi remains a key player to watch this February.
PayPal, a key player in online payments
PayPal’s evolution in the online payments sector continues to showcase its strength. With an impressive number of 434 million active accounts, the total payment volume for PayPal reached $437.8 billion in the fourth quarter. Despite growing competition, its early leadership has remained a considerable asset for the company, making this stock particularly attractive for investors looking to capitalize on its ongoing successes.
Strategic insights for investors
Investing in SoFi and PayPal could prove to be a wise decision as 2025 approaches. With the current growth momentum, SoFi could add 2.8 million new members this year, an impressive increase of 28% compared to 2024. On the side of PayPal, the current stock valuation is reasonable, with an upcoming price-to-earnings ratio of 18.1, lower than many other competitors, making it a particularly attractive option.
