Investors should be cautious with Fintech stocks like Block, Affirm, and Coinbase

From Nasdaq

August 8, 2024 07:02:00 AM:

1. Fintech is growing rapidly, incorporating hardware and AI in fraud detection. Investors need to be cautious with new opportunities in this sector. The market is expected to grow at a CAGR of 17.6% until 2029.

2. Block (SQ) offers financial solutions and operates Square and CashApp. While revenue is increasing, profit margins and ownership percentages are lower than competitors. Layoffs in the future could impact the company’s stability, causing uncertainty for investors.

3. Affirm (AFRM) offers digital sales facilitation with spread out payment options. Despite revenue growth, the company has high losses and leverage. Facing stiff competition, especially from Apple and PayPal, Affirm may struggle in the future and is a stock to sell.

4. Coinbase Global (COIN) is a prominent crypto exchange with significant revenue growth. However, profitability remains a concern, and the company missed Q2 EPS estimates. Revenue collection directly affects crypto prices, making it a volatile investment for those who do not accept the risks.

Read more at Nasdaq: 3 Fintech Stocks to Sell in August Before They Crash & Burn