Despite what the markets over the past year might indicate, fintech is a rapidly growing industry. Cathie Wood's Ark Fintech Innovation ETF is down 37% over the past year even as the S&P 500 is only down 7%. But stock price changes over time are not the only way to measure a company's performance. The decline in this sector reflects some of the risks around fintech stocks right now. The decline has also created some investment opportunities.
Many of these stocks are likely to bounce back. Which opportunity you jump at depends, in some ways, on what kind of investor you are. Older, established fintech companies such as PayPal Holdings (NASDAQ: PYPL) may provide a higher level of security to investors, while a newer growth company such as Marqeta (NASDAQ: MQ) may come with more risk, but also more opportunities for higher returns.
Which of these two fintech stocks is the better buy today? Two Motley Fool contributors present their answers.
Source Fool.com