As 2024 draws to a close, investors are looking for a Santa Claus rally lifting stocks in the last week of December and a January effect to arrive the following month. The January effect occurs when investors buy back into the market after taking their tax losses and selling underperforming stocks to offset capital gains from cashing in on their winners. The net effect could be a sustained market rally through January. However, history is not a guarantee of future results. That said, here are two fintech stocks in the computer and technology sector that you can buy now for potential exposure next January.
Robinhood Markets: Stocks, Options, Crypto Trading and Sports Betting?
Robinhood Markets Today
Robinhood Markets
(As of 12/20/2024 5:45 PM ET)
- 52 week range
- $10.38
▼
$43.83
- P/E ratio
- 64.97
- Target price
- $39.20
One of the greatest comeback stories of 2024 is the restoration of the digital brokerage platform. Robinhood Markets Inc. NASDAQ: HOOD. As of December 13, 2024, its shares were up 215% due to increased trading volumes and the rise in Bitcoin prices. The company also added event contract trading for the 2024 presidential election, where users could bet on the winner of the election in a brokerage app for the first time.
Banking on the runaway success of the events deal, CEO Vlad Tenev suggested the fintech company could look to expand into sports betting. This has led to a rise in shares of digital bookmakers such as DraftKings Inc. NASDAQ: DKNG, Flutter Entertainment plc NEW YORK CITY: FLOODINGAnd Penn Entertainment Inc. NASDAQ: PENN lower due to fears of losing market share. However, betting will not be as complex as sports betting; instead, it will offer simple event contracts similar to presidential ones contracts for holding election events.
Average revenue per user grew 36% YoY in Q3
Robinhood Markets Stock Forecast Today
$39.20
Growth potential 2.27%Moderate purchase
Based on ratings from 15 analysts
| High forecast | $55.00 |
|---|---|
| Average forecast | $39.20 |
| Low forecast | $21.00 |
Robinhood Markets Stock Forecast Details
Robinhood reported third-quarter 2024 earnings per share of 17 cents, missing analyst estimates by a penny. Revenue rose 36.4% YoY to $637 million, below consensus estimates of $660.53 million. Its assets under custody (AUC) grew 76% YoY to $152.2 billion, driven by net deposits and growth in the value of shares and cryptocurrencies.
Net deposits grew 29% relative to AUC to $10 billion. Average revenue per user (ARPU) grew 36% YoY to $105, indicating increased trading activity with customers. Robinhood Gold subscribers grew 65% year over year to 860,000. Monthly active users (MAU) grew 7% year over year to 11 million.
Statistics for November tripled compared to last year
In November, notional trading volumes in Robinhood shares rose 178.1% year over year to $147.1 billion. Notional trading volumes in cryptocurrencies increased 6 times compared to October and 8 times compared to the same period last year, to $35.2 billion AUC grew by 106% year on year to $195 billion. The growth rate of net deposits in November was 42% in year-on-year compared to October 2024. Margin balances grew 100% year over year to US$6.8 billion. Total securities lending income grew 109% year over year to $23 million.
SoFi: Fintech that attracts generational customers
SoFi Technologies today
Sophie Technologies
(As of 12/20/2024 5:45 PM ET)
- 52 week range
- $6.01
▼
$17.19
- P/E ratio
- 153.52
- Target price
- $11.04
SoFi Technologies Inc. NASDAQ: SOPHIE covers the concept of customer generations and network effects. The company offers student loans for children going to college. He continues to introduce them to new financial services, from checking and savings, investing, wealth management, personal loans and credit cards to auto loan and mortgage refinancing. As students progress and begin their careers, SoFi aims to become an essential solution throughout their financial lives.
The platform should be interesting as users try new services and features. This is evidenced by the double-digit growth in the number of new products added by participants. New product additions grew 31% year-over-year, increasing by 1.1 million in the third quarter of 2024 for a total of 13.7 million products used by members. Financial services products grew 33% YoY to 11.8 million and lending products grew 19% YoY to 1.9 million. The model works because the company has become profitable.
Breaking records illustrating sustainable growth
For the third quarter of 2024, Sofi reported earnings per share of 5 cents, beating analyst estimates by a penny. Net profit amounted to $61 million. Revenue rose 30% year over year to $697.1 million, beating analysts’ consensus estimate of $631.59 million. Membership grew 35% year over year, up 756,000 in the third quarter to 9.4 million. Combined growth of the financial services and technology platforms segments grew 64% year over year, increasing to 49% of total revenue. SoFi reported revenue of $174 million based on fees.
SoFi offers forecast for 2024
SoFi Technologies stock forecast today
$11.04
-28.07% DisadvantageHold
Based on ratings from 13 analysts
| High forecast | US$16.00 |
|---|---|
| Average forecast | $11.04 |
| Low forecast | $3.00 |
SoFi Technologies Stock Forecast Details
SoFi issued full-year 2024 earnings per share growth forecast of 11 to 12 cents, compared with the consensus estimate of 10 cents. For full-year 2024, revenue is expected to be between $2.54 billion and $2.55 billion, versus the consensus estimate of $2.46 billion.
SoFi CEO Anthony Noto commented, “Our one-stop shop continues to attract cross-shopping from our members. In fact, 32% of new products were opened by existing SoFi members, and 20% of our new members opened a second product within the first 30 days. This is the power of the flywheel we developed. We have reached over 160 million accounts on our tech platform. This is 17% more than last year.”
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