Financial technology, or fintech, has ushered in a new era in banking and finance, exploiting artificial intelligence (AI), blockchain, and many other advanced technologies. Fintech has issued a challenge to traditional banks by…
focusing on technology and customer experience. It has endless applications in areas such as cryptocurrency, mobile banking, and investment platforms.
In addition, fintec has the potential of tapping into unbanked and underbanked communities in rural areas, where traditional banking facilities are hard to establish. In the United States, mobile payments are set to reach $125 billion in 2025. The global fintech market is expected to grow at a 23.4% CAGR to a $324 billion market value by 2026.
Given the industry’s growth prospects, Wall Street analysts expect fintech stocks UP Fintech Holding Limited (TIGR – Get Rating), Mogo Inc. (MOGO – Get Rating), and Elevate Credit, Inc. (ELVT – Get Rating), which are currently trading at less than $10, to rally more than 55% in price in the near term.
UP Fintech Holding Limited (TIGR – Get Rating)
TIGR provides online brokerage services to Chinese investors. The company offers a brokerage platform that allows investors to trade stocks, warrants, and other financial instruments, and can be accessed through the company’s app and website. It is based in Beijing, China.
On November 5, TIGR announced that its Singapore-based subsidiary, Tiger Brokers (Singapore) Pte. Ltd., had received approval to be a trading member of Singapore Exchange Securities Trading Limited and Singapore Exchange Derivatives Trading Limited. The company expects these developments will help improve its client services.
In October, the company acquired Ocean Joy Securities Limited, a Hong Kong Securities and Futures Commission licensed firm. This should strengthen TIGR’s presence in Hong Kong.
For its second fiscal quarter, ended June 30, TIGR’s total revenues increased 98.7% year-over-year to $60.23 million. This can be attributed to a 63.7% rise in revenue from commissions to $30.94 million versus the prior-year quarter. After interest expenses, its total net revenues improved 95% from the same period last year to $55.40 million.
A $0.48 consensus EPS estimate for the current year (fiscal 2021) indicates a 220% year-over-year increase. Likewise, the $257.15 million consensus revenue estimate for the current year reflects an 85.7% improvement from the prior year.
The stock has gained 22.2% in price over the past year and 10.2% over the last five days to close yesterday’s trading session at $7.28.
TIGR’s $18.22 12-month median price target indicates a 150.3% potential upside.
Mogo Inc. (MOGO – Get Rating)
Based in Vancouver, Canada, MOGO operates internationally as a financial technology company, providing digital solutions to customers that improve their financial health. It also operates a digital payments platform.
On November 9, MOGO and financial services company Sun Life Financial Inc. (SLF) announced a pilot to bring MOGO’s saving and investing app, Moka, to SLF members in expectation of increasing members’ savings.
On November 8, the company declared its new…
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