Do you have $ 10,000? 2 best Fintech stocks to buy in the long run

If you have $ 10,000 available to invest after paying down debt and creating an emergency fund, there is a world of opportunities in the current market. The key here is patience. We may find ourselves ready for a bear market, and it may not give up until interest rates start to fall. But you can not time the market, so if you see great deals today, you will not miss the chance to buy them.

Fintech is a sector that has been hit hard in this market. Financial service companies are acutely affected by macroeconomic changes, and technology stocks, which often have high values, have faltered in an environment that values ​​value rather than growth. However, if you focus on the bigger picture, many of these companies have high-growth winning companies that should benefit shareholders in the long run. PayPal Holdings (PYPL 2.23%) and Global-e Online (GLBE 9.22%) are two of my favorite stocks with a huge long-term potential.

1. PayPal

PayPal, the original digital payment company, has not given up its leading position. It has upgraded, acquired and improved its way of staying on top of this industry, and it can remain there comfortably for many years to come.

2021 was a fantastic year for the company when expenses came back, and digital expenses exploded. As much as digital shopping grew with a fair cut before the pandemic, its acceleration gave a huge boost to PayPal’s business. PayPal was in an excellent position to handle the influx, and the annual results tell the story. Total payment volume (TPV) increased by 33% year-on-year in 2021 to $ 1.25 trillion, revenue increased by 18%, and non-GAAP (generally accepted accounting principles) earnings per share increased by 19%. It also added 49 million net new active accounts to the platform, which is more than the entire population of Canada, in just one year.

This was followed by continued growth into the first quarter of 2022. TPV increased by 13% during the first quarter of 2021, and revenues increased by 7%. The outlook for the financial year 2022 dissatisfied investors and caused the share to fall. But even as growth slows, PayPal is well positioned for long-term success.

It has 429 million users, and it expects 10 million net new active accounts in 2022. It is a lead that is difficult to compete with, and gives it a solid moat. Contrast that with Block’s 44 million active Cash App users. These active ones also increase engagement and create organic growth.

Management has actively added new services, such as a new credit card for companies and a monthly pay option, both launched in June.

The PayPal stock is down more than 60% this year and is trading at only 25 times after 12-month earnings. It looks like a great option to upload with a view to future growth prospects.

2. Global-e

Global-e is in many ways a completely different type of company than PayPal. It’s at the beginning of the journey, it’s not yet profitable, and in its current form it has a very niche focus. At the same time, it is a leader in its relatively new industry and increases customer numbers, has high growth and adds value to its services.

The company operates with digital payments across borders, and offers an integrated platform for e-commerce companies. Once installed, customers see the ability to ship to more than 200 destination countries and have the ability to pay in over 100 currencies. It also offers all kinds of data analysis and marketing tools and works with many other e-commerce solutions. It claims that companies are seeing an increase of more than 60% in sales after implementing the technology.

It is still a fairly small company, with $ 275 million in sales after 12 months, but it is growing rapidly. Sales increased by 65% ​​from year to year in the first quarter of 2022, and gross goods volume increased by 71%. It is signing on new customers, such as Adidas and Brooks Brothers, and has an agreement with Shopify. Last week, it announced that it was buying competitor Borderfree from Pitney Bowes, which it will maintain a relationship with for mutually beneficial services. E-commerce is expected to grow from just under $ 5 trillion in 2021 to almost $ 7.4 trillion by 2025, according to eMarketer, and online sales are expected to account for more than 23% of all sales by then. Global-e’s market opportunity is enormous, and it sets itself up to dominate its field.

The global e-share is down 68% in 2022, and the shares are not cheap even at this price, and are traded at almost 13 times the sale after 12 months. The price-to-sales ratio will naturally fall as it absorbs Borderfree’s business, unless prices rise at the same time, an unlikely event in this market that investors would probably not protest. But the company has great potential, and it is making the right moves. The decline in the share price provides an opportunity to buy the share before the market turns up again.