These fintech stocks would have doubled your money last year

It has been an interesting year on the stock market, to say the least. After plunging into a bear market at record speed as the COVID-19 epidemic began, the S&P 500 rebounded and then some. He is seated at a Gain by 16% with only a few days in 2020.

However, many stocks have performed much better, and this is especially true in the area of ​​FinTech or fintech. Here are three in particular that have doubled or more investor money in 2020, but remain attractive as 2021 approaches.

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3 Fintech stocks that have doubled (or more) investors’ money

I won’t hold you in suspense. Here are three fintech stocks that have generated total returns of 100% (or, in some cases, much more) over the past year.

Data source: YCharts. Total returns for 1 year ending December 29, 2020.

A look at each company’s performance explains why these stocks performed so well.

In Square’s case, its core payment processing business continued to perform well. The early success of its omnichannel online store platform is also encouraging. However, the real story is Square’s Cash app, which has doubled its user base in the past year. Additionally, the company has done a fantastic job monetizing the platform with features like stock trading and cryptocurrency trading.

PayPal is in a similar situation. The leader in online payments plans to add 70 million new net asset accounts by 2020, doubling initial expectations. The company now has nearly $ 1 trillion in annualized payment volume on its platforms, including Venmo, which now has 65 million active users and a 61% year-over-year payment volume growth rate. on the other.

Finally, the disruptive real estate brokerage eXp World Holdings has more than 35,000 agents on its platform. He is growing at a remarkable rate. Over the past year, the number of agents and brokers on the eXp platform has grown by more than 56% and the volume of residential transactions concluded by its agents has increased by 112% to 23.6 billion. dollars. As a result, eXp’s revenue and gross margin doubled year-over-year in the third quarter, and its cash flow nearly tripled.

Are these fintech stocks still good to buy now?

It’s natural to wonder if a stock is still good value after a performance like this. Either way, there could still be huge upside potential from here.

Square and PayPal still have a lot of potential to grow their core payment processing businesses. The pair currently trades around $ 100 billion and $ 1 trillion in annualized payment volume, respectively, but that’s quite small compared to the global payments market of $ 185 trillion. Additionally, Square is still in the early stages of monetizing its Cash app, and PayPal has barely tapped into the revenue-generating potential of its massive Venmo platform.

While eXp’s growth is certainly impressive, and over $ 90 billion in annualized transaction volume may seem like a huge amount (and it is), it is still a relatively small fraction of the few. $ 2 trillion in annual real estate transactions in the United States. in Canada, UK, Australia and South Africa as well, so its addressable market is considerably larger.

The bottom line is that these companies have become big winners in fintech in 2020, but there’s no reason to believe they won’t continue to win. All three come into 2021 with incredible momentum and could still be smart additions to long-term investor portfolios now.