Fintech Stocks: How Will the Global New Economy Impact Them?
The internet economy in Southeast Asia is expected to be worth 330 billion dollars by 2025 and 1 trillion dollars by 2030, according to estimates made by experts. Singaporean tech giant Sea Limited is the first to make a list (NYSE: SE). Though it did not make MarketWatch’s list of 2022’s worst performers, SE closed 49% below its IPO price the prior year. NASDAQ: PYPL, the second Fintech stock on the list, was hit hard by the consolidation above in the financial technology industry.
With a CAGR of 16.18% between 2018 and 2028, the global new economy might be worth $873 billion by that year. With a long service history stretching back to the early days of the internet, PayPal is set up to capitalize on this development. Experts on Wall Street are also bullish on PYPL, rating it a moderate purchase with an expected price objective of $51.15.
With the economy looking bleak for retail consumer businesses, Match Group (NASDAQ: MTCH) saw huge losses in 2022, dropping its market value by 68.6%. Financial experts agree rating MTCH a buy with a median price target implies a 38% upside. As the cost of borrowing money rose and demand for storage devices slowed, data storage provider Seagate Technology (NASDAQ: STX) saw its losses mount. Its discount to earnings beats the sector average by 69 percentage points.
The final three stocks are (NASDAQ: AMD) Advanced Micro Devices, (NYSE: DIS) Walt Disney, and (NASDAQ: META) Meta Platforms. While AMD stands to gain from the industry-wide shortage of semiconductors, Walt Disney is well-positioned to reap the rewards of a revitalized entertainment industry thanks to its robust collection of media and entertainment properties.