Inherently, the financial technology (or fintech) space can help shift the paradigm of the money ecosystem thanks to the underlying convenience. Nowadays, practically everyone has a smartphone. That’s basically all you need to enjoy various critical services. Major institutions are so big that they may lack the flexibility to adapt quickly to changing conditions. So, that’s one reason to consider disruptive fintech stocks: The associated offerings are convenient.
Another factor — perhaps the biggest one — is accessibility. What makes disruptive fintech stocks so powerful is that they open doors to millions (if not billions) of people worldwide. Again, not everyone may have access to a physical bank. But most folks nowadays have a smart device. So, what fintech players are doing is eliminating the barriers to credit and other financial services and bringing the solutions to users’ fingertips.
That’s going to drive the major institutions nuts. Oh well. Below are compelling and disruptive fintech stocks to consider.
PayPal (PYPL)
One of the most popular disruptive fintech stocks available, PayPal (NASDAQ:PYPL) represents the sector’s vanguard enterprise. It’s been around for a while and management is well aware of the shifting trends in the payment ecosystem. That’s why I don’t think it’s prudent to fret about PYPL’s volatility. Yes, it’s down sharply from 2021’s high point. If anything, we could have a relative discount here.
A key aspect to consider is that PayPal offers intuitive business management software for its users. Administrative tasks like invoicing, cash flow analytics and other items are handled rather effortlessly. In my opinion, these functionalities make PYPL stock an ideal investment for the burgeoning gig economy. With the nature of the workplace changing, PayPal organically finds itself as a relevant platform.
During the trailing 12 months (TTM), PayPal posted a net income of $4.34 billion or earnings of $3.97 per share. Revenue in the cycle hit $30.43 billion. For fiscal 2024, analysts admittedly see an erosion of earnings per share to $4.20. However, revenue could jump 15.2% to $32.03 billion.
Sea (SE)
Based in Singapore, Sea (NYSE:SE) ranks among some of the elite disruptive fintech stocks. That’s because of the combination of its relevance and geographical positioning. With its subsidiaries, Sea provides digital entertainment, e-commerce and digital financial services. All three business units likely enjoy a northward trajectory, making SE stock an enticing opportunity.
Further, Sea isn’t just any other fintech player. Rather, it’s positioned to serve the burgeoning Southeast Asian internet economy. According to the World Economic Forum, the region could become a $1 trillion digital ecosystem. Indeed, before the COVID-19 crisis, many experts anticipated that this market would hit this milestone valuation.
Admittedly, Sea has delivered some wildly choppy earnings performances. Still, the important point is that it’s profitable, generating a net income of $38.99 million over the TTM period. Further, revenue hit $13.76 billion in the cycle.
For fiscal 2024, experts see an 80% expansion in EPS to 70 cents. Further, sales could rise to $15.41 billion, a lift of 17.9%. What’s more, fiscal 2025 could yield EPS of $1.62 on sales of $17.49 billion.
Robinhood (HOOD)
At first glance, Robinhood (NASDAQ:HOOD) might not seem like the ideal play among disruptive fintech stocks. Sure, shares of the financial services firm — which provides readymade access to an app-based stock and crypto trading platform — have soared this year. However, since its public market debut, HOOD incurred a sizable dip of more than 40%.
Still, Robinhood is easily disruptive, especially to the big banks and their investment and wealth management arms. You see, with the big boys, they have certain requirements, such as minimum assets held and whatnot. If you show up with a few bucks to your name, you’re going to be laughed out of the building. However, Robinhood opens access to pretty much everyone.
That’s super attractive. That’s also super disruptive.
Notably, during the TTM period, Robinhood posted net income of $127 million or 14 cents per share. Revenue reached $2.04 billion. For fiscal 2024, analysts see gargantuan expansion of EPS to 53 cents (from a loss of 61 cents last year). Also, revenue could soar 30% to $2.42 billion. Yeah, it’s one of the disruptive fintech stocks.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
