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Yahoo
01-05-2025
- Business
- Yahoo
American Express Company (AXP): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where American Express Company (NYSE:AXP) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up view of a payment terminal, capturing the sophistication of a payment network. Number of Hedge Fund Holders: 71 Revenue Growth (YoY): 9.05% American Express Company (NYSE:AXP) is strongly established in the financial technology industry because of its growing range of tech-focused products, including buy now, pay later (BNPL) options and digital credit cards and mobile payments. The firm has benefited from numerous years of faster growth as its loan and new card acquisitions have greatly surpassed those of its competitors. Historically, the business has prioritized payment networks over lenders. Even though it still only receives about 25% of its revenue from net interest income, this hasn't changed. Over the past three years, American Express Company (NYSE:AXP)'s move to a younger cardholder base and more lending features on its cards has caused net interest income to grow at a compound annual growth rate of 26.1%, which has significantly boosted overall growth. The business posted strong results in the first quarter of 2025, with earnings per share growing 9% from the previous year to $3.64, owing partially to a $73 million credit reserve release. The price target for American Express Company (NYSE:AXP) was increased by Morgan Stanley from $246 to $250. Although spending decreased more than anticipated, the analyst pointed out that a minor EPS beat was driven by a reserve release. According to the analyst, credit appears "solid," with delinquencies remaining below pre-COVID levels, but reserves must rise in Q2. Overall AXP ranks 10th among the best fintech stocks to buy in 2025. While we acknowledge the potential of AXP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AXP but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-04-2025
- Business
- Yahoo
Sea Limited (SE): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where Sea Limited (NYSE:SE) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A person livestreaming their gameplay on a mobile device with integrated payment options. Number of Hedge Fund Holders: 86 Sea Limited (NYSE:SE) began as a gaming company, Garena, but in 2015 expanded into e-commerce. It runs Shopee, the biggest e-commerce platform in Southeast Asia based on gross merchandise value. A platform that operates in Indonesia, Taiwan, Vietnam, Thailand, Malaysia, the Philippines, and Brazil, Shopee is a hybrid C2C and B2C marketplace. The firm's third segment, SeaMoney, which makes it one of the Best Fintech Stocks, offers loans, payments, digital banking, and insurance services. Sea Limited (NYSE:SE) reported a strong Q4 2024 performance, with a good mix of robust growth and improved profitability. Adjusted EBITDA climbed 366% to $591 million, while revenue surged 37% to $5.0 billion, the strongest growth in over three years. Shopee, the company's main e-commerce division, maintained its dominance in key areas, particularly Thailand and Indonesia, as its total Gross Merchandise Volume (GMV) rose 28% to $28.6 billion. Shopee's marketplace take rate climbed by 160 basis points year over year to 12.8%, mostly due to improving ad adoption and higher commissions. Most importantly, the growth of GMV has not been hampered by previous fee hikes, showing Shopee's pricing power based on the value it provides to sellers. Loop Capital maintained its Buy rating on Sea Limited (NYSE:SE) shares and increased its price objective from $135 to $165. In a research note, the analyst informs investors that the company's gaming franchise has shown resilience and is positioned to be a consistent cash contributor that grows with upside potential, while its fintech in emerging markets presents a huge growth opportunity, and the e-commerce ecosystem is a consumer data goldmine to power risk models. According to the company, the business should be a key position in long-term growth portfolios because of the stock's appealing near-term setup. Overall SE ranks 7th among the best fintech stocks to buy in 2025. While we acknowledge the potential of SE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SE but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
PayPal Holdings, Inc. (PYPL): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where PayPal Holdings, Inc. (NASDAQ:PYPL) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A consumer in a cafe paying for goods using a mobile payment app. Number of Hedge Fund Holders: 94 PayPal Holdings, Inc. (NASDAQ:PYPL) is a major player in the online payments industry. Its Venmo person-to-person payment network has emerged as a market leader, and its name, PayPal, has completely changed how customers pay for products both online and offline. The company's new leadership team is aggressively promoting growth by introducing a new advertising platform, Fastlane checkout, and efficiency improvements. PayPal Holdings, Inc. (NASDAQ:PYPL) has the financial flexibility to take advantage of opportunities as they arise since it has over $11 billion in cash and assets on its balance sheet and over $5 billion in free cash flow annually. There are currently 432 million active accounts with the company across more than 200 countries. Given its profitability and dominant position in the market, the industry is likely to continue to grow. It is ranked fifth on our list of the Best Fintech Stocks. Strategically, the business is focusing on innovation to improve its position in payments and commerce. In 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) introduced and grew several innovative services, such as PayPal Everywhere, Fastlane, PayPal Complete Payments, and new branded checkout experiences. The company launched PayPal Everywhere in September 2024. The company expanded its spending and greatly boosted the use of debit cards due to the invention. By 2025, it intends to introduce PayPal Everywhere into European markets. Overall PYPL ranks 5th among the best fintech stocks to buy in 2025. While we acknowledge the potential of PYPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PYPL but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-04-2025
- Business
- Yahoo
Nu Holdings Ltd. (NU): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where Nu Holdings Ltd. (NYSE:NU) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A wide angle shot of a team of bankers and financial advisors evaluating an investment portfolio on a touchscreen monitor. Number of Hedge Fund Holders: 79 Revenue Growth (YoY): 48.73% A fintech business based in Brazil, Nu Holdings Ltd. (NYSE:NU) runs an online banking platform. The company serves more than 100 million consumers in Brazil, Mexico, and Colombia and provides a broad range of financial services through its entirely digital model. The business keeps introducing new, innovative products and growing its clientele in the areas where it operates. It announced in January 2025 that it has 10 million Mexican clients. In 2024, Nu Holdings Ltd. (NYSE:NU) produced strong results, with sales rising 58% year over year to $11.5 billion, fueled by a 23% rise in average revenue per active client to $10.7. The company had a notable increase in its clientele, adding 20.4 million new subscribers to its total of 114 million users by the end of the year. Active customer growth was 22% year over year. Moreover, profitability improved as net income nearly doubled to about $2 billion, yielding an annualized return on equity of 28%. Operational efficiency reached new highs, with the efficiency ratio falling to 29.9%, placing the firm among the Best Fintech Stocks. Jorge Kuri, a Morgan Stanley analyst, kept his "Buy" recommendation on Nu Holdings Ltd. (NYSE:NU) with a price objective of $18 on February 25. The analyst underlined the company's great growth potential, which has been driven by notable net customer additions, high engagement among wealthy clients, and robust growth in Brazil's credit card portfolio. The company's secured and unsecured loan divisions are doing well, the analyst added. Secured loans are likely to increase their percentage of the credit book, which will boost return on equity and net interest margin, according to the firm. Furthermore, if accounting technicalities are taken into consideration, the credit card industry's revenue yield appears to be more appealing than initially projected. Overall NU ranks 9th among the best fintech stocks to buy in 2025. While we acknowledge the potential of NU as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NU but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-04-2025
- Business
- Yahoo
Robinhood Markets, Inc. (HOOD): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where Robinhood Markets, Inc. (NASDAQ:HOOD) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A successful business person confidently managing their finances on a mobile device. Number of Hedge Fund Holders: 79 Revenue Growth (YoY): 58.23% From a simple trading app, Robinhood Markets, Inc. (NASDAQ:HOOD) has evolved into a full-fledged financial platform with many revenue streams, making it one of the Best Fintech Stocks. It includes trading fees, interest income, and subscriptions. The company recently revealed strong customer engagement, more interest income, and record profits and revenue. The firm's growth trajectory is still inexpensive, even with the stock's recent surge. Although it was the first to offer commission-free trading for stocks, options, and cryptocurrencies, the company has since grown to offer premium subscription services, cash management, and retirement accounts. This multi-revenue strategy builds a more stable financial base by lowering reliance on unpredictable trading activities. The company's development prospects remain optimistic, with various expansion drivers: improved trading tools, futures trading, international market entry, and the thriving crypto segment, where trading revenue has surged by 700% year on year. While the TradePMR acquisition aims to provide financial advising services to higher-net-worth clients, the Bitstamp acquisition solidifies its position in the global cryptocurrency market. Robinhood Markets, Inc. (NASDAQ:HOOD) is successfully generating revenue from consumers while growing its clientele, as seen by the 86% annual growth in Gold memberships, as well as the rise in cash deposits and retirement accounts. Following the company's impressive Q4 2024 performance, Needham analysts maintained their "Buy" recommendation on the firm on February 13, 2025, raising the price target from $52 to $70. Robinhood Markets, Inc. (NASDAQ:HOOD) reported a strong 60% adjusted EBITDA margin for the quarter, owing to growth across all transaction sectors and effective cost control. According to Needham analysts, the amount of cryptocurrency trade is expected to expand significantly in the second half of 2025. The recent acquisition of Bitstamp, a cryptocurrency exchange, by the business is anticipated to raise the company's cryptocurrency trading volumes by 40%. Needham's optimistic assessment shows faith in the company's capacity to maintain its growth trajectory through calculated actions. Overall HOOD ranks 8th among the best fintech stocks to buy in 2025. While we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
