Technology and Fintech stocks are becoming increasingly popular in today's market. Fintech is a term used to describe technology that seeks to improve and automate the provision and use of financial services.
While the traditional methods of the current financial transactions, like banknotes, are still dominating the world, many other methods of non-cash transactions have emerged. For example, fintech giants such as Visa and MasterCard have begun to embrace cryptocurrency transactions.
3 fintech companies’ stocks will be the highlights of April:
Square, Inc. is an American financial services and digital payments company founded in 2009. It includes point of sale terminals, auxiliary equipment, and small business services. The company’s share price has doubled seven times since early 2020.
As for the company's financial condition, it is considered very healthy. In the fiscal year ending on December 31, 2020, the company's revenues rose by a whopping 101% - from $4.71 billion to $9.5 billion.
It is worth noting that the company previously invested more than $200 million in bitcoin over the past year. Square’s shares may attract investors who believe in the rapid development of the crypto world, as Bitcoin has been trading near its all-time high.
Technically, Square’s share prices are trading within a bearish channel after it reached its all-time highs in February 2021, near the $283 mark. Prices are currently testing the downtrend line of the mentioned channel slightly below the Fibonacci retracement level at $233. We expect prices to continue the downside targeting the important support levels at $200. If prices break below the mentioned level, we could see a further bearish movement to the downside perhaps even to levels of $180, followed by the $170.
Otherwise, breaching the upper line of the channel and stabilizing beyond the levels of $233, the share might be pushed to target the levels of $250, and then to its all-time highs again.
PayPal Holdings, Inc
PayPal Holdings, Inc. is a company that has been at the forefront of the digital payment revolution for more than 20 years by taking advantage of technological advancements to make financial services more convenient and secure. The share price has increased by more than 126% since the beginning of 2020.
In its financial statements for the fiscal year ending December 31, 2020, revenue increased 21% year-on-year to $21.45 billion and net income increased 71% to $4.2 billion. The company also announced that it is now allowing US consumers to use their cryptocurrency holdings to pay online merchants globally.
Users who have bitcoins and other cryptocurrencies in PayPal digital wallets will now be able to convert their balance into cryptocurrencies upon checkout. This is an important step that will enhance the use of digital assets in daily trades.
Technically, the share price is moving in a similar fashion to Square's stock, and it is currently testing an important resistance area at levels of $250-256. Stabilizing below those levels, the share price might test the support area at levels of $225-227. Breaking through this support level, the share could target levels of $205-200.
On the upside, a breach of the resistance at $250-256 may push prices up, targeting $276 and further on to $308.
Goldman Sachs Group, Inc.
Goldman Sachs Group, Inc. is a global leader in investment banking, securities, and investment management, however, this may change as the company begins to embrace the idea of fintech and innovation.
In March 2021, Goldman Sachs invested in Turkish fintech company DgPays, indicating that the company is putting its faith in fintech – the stock is up over 20% year-to-date. Goldman Sachs also announced that it will offer a "full range" of cryptocurrency investments to its clients in the coming months.
Technically, prices are trading above the ascending trend line around $325. If prices stabilize, the share price could rise towards $356, its all-time high. From the downside, any breakthrough below the trend line at $309, and prices could be pushed lower towards $280-270.