29/05/2024 6:25 AM

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Investing Ideas: 2 Fintech Stocks to Buy on the Dip

As online shopping grows in market share, so will the need for digital wallets, which bodes well for fintech investors. Today’s video focuses on two fintech stocks creating new solutions for customers in the everlasting digitalization era. Here are some highlights from the video. 

  1. The two stocks are PayPal (NASDAQ:PYPL) and Block (NYSE:SQ), formerly known as Square. Both stocks have dropped dramatically from all-time highs, PayPal is down over 25%, and Block is down even more, at over 40%. 
  2. Fundamentally both Block and PayPal have strong balance sheets, which bodes well during times of high interest rates. Both companies are positive in cash flow from operations and have more cash and short-term investments than long-term debt. 
  3. PayPal has revamped its application to make it a one-stop solution for all your digital wallet needs, which can continue to drive strong member growth in its spending ecosystem. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closed prices of Jan. 14, 2022. The video was published on Jan. 16, 2022.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.