Affirm and Robinhood Make It To Top FinTech Stocks for 2024 - Analyst Says It Promises Growth for Average Americans
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst Dan Dolev has highlighted Affirm Holdings (AFRM), Fidelity National Information Services (FIS), Robinhood Markets (HOOD), and Block (SQ) as top FinTech stocks for 2024, promising growth for average Americans. Dolev emphasizes AFRM's expansion beyond 'Buy Now Pay Later' into a broader payment network, competing with Visa (V), Mastercard (MA), and PayPal (PYPL). He projects higher than consensus FY24 revenues for AFRM, FIS, and HOOD, and a 16%+ gross profit growth for Block. AFRM shares recently dropped by 2.27%.
January 18, 2024 | 7:44 pm
News sentiment analysis
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NEGATIVE IMPACT
Mastercard is identified as a competitor to Affirm's alternative payment network, which may impact its position in the market.
As Affirm challenges traditional payment networks like Mastercard, there could be short-term pressure on Mastercard's stock price due to the competitive threat.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
PayPal Holdings is also mentioned as a competitor in the payment network space, which Affirm is targeting for growth.
Affirm's strategic move into the payment network space could create challenges for PayPal, potentially affecting its stock price negatively in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Visa is mentioned as a competitor to Affirm's expanding payment network, which could indicate increased competition in the payment space.
Affirm's move into Visa's territory could lead to increased competition, potentially putting pressure on Visa's market share and stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Affirm Holdings is projected to outperform with an expanded payment network and innovative products like the Affirm Card, potentially surpassing medium-term GMV guidance with FY24 revenue projected at $2.24 billion.
The positive outlook from the analyst, highlighting Affirm's expansion and innovative products, suggests a strong potential for growth, which could lead to an increase in stock price in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Fidelity National Information Services is expected to see improved stability and organic growth, with a projected FY24 revenue of $10.06 billion and normalized earnings power approaching ~$5 in 2024.
The divestiture of the underperforming merchant acquiring business and the expected organic growth range could lead to a more stable and positive outlook, potentially boosting the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Robinhood Markets is anticipated to benefit from an improving financial outlook and lower rate environment, with projected FY24 revenue of ~$2.03 billion and continued leadership in options trading.
The expectation of increased trading activity and new product launches could lead to improved market sentiment and stock price appreciation in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Block, Inc is projected to achieve over 16% gross profit growth in 2024, with potential for higher EBITDA than the guided $2.4 billion, and FY24 revenue projected at $8.69 billion.
The analyst's projection of significant gross profit growth and the potential for higher EBITDA than guidance suggest a bullish outlook, which could positively impact the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80