Is Green Dot a Buy?
While the banking industry has managed the financial turmoils of the coronavirus pandemic well overall, the stock performance of some banks has been underwhelming over the past year as investors worried about how the industry would deal with a faltering economy. Traditional banks also had to manage while facing tighter government regulations and a low-interest-rate environment.
A year on now into the economic turmoil, most banks have managed to recover their stock losses from the worst point in 2020. At the same time fintech, or financial technology, entities were able to outperform traditional banks as digital payments and other services became super important under pandemic lockdown conditions. But like other tech-oriented stocks, there has been some price pullback recently.
Green Dot (NYSE: GDOT), a hybrid bank and fintech company, saw its stock outperform traditional banks, growing 175% over the past year compared to 111% gains for the SPDR S&P Bank ETF. But unlike some of the big banks that made most of those stock price gains in 2021 (up 28%), Green Dot stock is down 8.2% so far this year.
Source Fool.com
