2 Brilliant Fintech Stocks to Buy Now and Hold for the Long Term
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Financial nology, or fin, stocks fell off many investors' radars in recent years. After the pandemic-fueled surge in e-commerce died down and interest rates the era of free money, many...
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real estate
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July 1, 2025
09:07 AM
The Motley Fool
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Financial nology, or fin, stocks fell off many investors' radars in recent years
After the pandemic-fueled surge in e-commerce died down and interest rates the era of free money, many of the high-flying fin players saw their stocks drop sharply
It could be time to take a closer look at the fin space again
There are some high-potential es trading for low valuations as well as some companies that could disrupt the way Americans handle their finances, buy s, and more
Image source: Getty Images
Don't count this massive out PayPal (PYPL 1. 53%) is one of those companies I was referring to in the introduction, with its growth stagnating as the COVID-19 pandemic slowed
Over the past five years, PayPal has dered a negative 54% return for investors, despite a generally strong stock market environment during the same period
However, PayPal completely overhauled its leadership team a year and a half ago to help turn things around, and the early results from CEO Alex Chriss and his team have been impressive
The initial priority was efficiency, and not only did the company boost fitability, but its user base once again started to expand
There are a lot of opportunities for PayPal to better monetize its and maximize the value of its platform
Venmo monetization is a big priority for the company, and it aims to combine all of its es -- PayPal, Venmo, Braintree, and so on -- under one platform in the not-too-distant future
PayPal also launched an advertising platform recently, and while it's still in the early days, this could be a great way for the company to extract value out of its unmatched consumer spending data
Moving beyond its core online payments market is another big opportunity
PayPal currently has 20% of the online payments industry, but it has less than 1% of the offline payments space, which management estimates is a $200 billion revenue opportunity
When including other things such as advertising, and potential credit revenue, the company has a largely untapped $800 billion market opportunity
In a recent presentation, PayPal's management set a goal to get to mid-teens percentage earnings growth in the near term, with a longer-term goal of sustained 20% annual earnings growth
If it can do that, the stock -- which trades for just 14 times forward earnings -- could be an absolute bargain
Disrupting a multitrillion-dollar industry In a normal year, between $5 trillion and $6 trillion worth of s are sold in the United States
Not only that, but owners currently have $35 trillion in equity
That's an all-time high
To say that the real estate industry is a big one would be an understatement
However, real estate is also an industry that is still in the early stages of its digital transformation
Of course, there are companies that make the mortgage cess much smoother, some that use nology to make shopping for a easier, and some that aim to change the antiquated real estate commission structure
But there aren't any big players that vide a true all-in-one experience, and that's where Rocket Companies (RKT 2. 68%) comes in
Rocket is best known for its industry-leading mortgage platform, but it's kicking its real estate dominance plan into high gear with announced acquisitions of both Redfin (RDFN -0. 18%) and Mr
Even the core mortgage is highly fragmented, with the top 10 companies having a total of less than one-fourth of the market
Rocket has a massive opportunity to grow its mortgage operation, as well as to disrupt the fee structure of the entire real estate industry by creating an all-in-one ecosystem
With a 97% client retention rate and some very interesting possibilities when integrating its two pending acquisitions, Rocket is a company to watch
What will consumer finance look in 20 years
I have no clue what either of these stocks will do over the next few weeks or months
But one thing that is a virtual certainty is that the ways we move money around the world, pay for goods and services, and buy and sell s will look a lot different in a decade or two from now
Banking, financial services, and real estate are massive industries, and these are two companies looking to bring them into the modern era
Matt Frankel has positions in PayPal and Redfin
The Motley Fool has positions in and recommends PayPal
The Motley Fool recommends Redfin and recommends the ing options: long January 2027 $42. 50 calls on PayPal and short June 2025 $77. 50 calls on PayPal
The Motley Fool has a disclosure policy.
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