Is Now the Time to Buy Fintech Stocks?
You don't need to be an expert to know that technology stocks of just about every stripe have taken it on the chin over the past year. The sector has been down more than 20% for most of the year. However, technology is a broad umbrella that may include hardware, software, communications equipment, information technology, and telecommunications companies, so it is not a monolith. Some areas are performing better than others.
One subset of technology is the growing area of financial technology, or fintech. Companies that are considered fintechs use technology to improve or automate financial services in some way. Of course, all financial companies rely on technology, but the term fintech typically applies to those where the technology is the primary driver of the business -- although the definition has become pretty loose.
Throughout the bull market of the 2010s, fintechs were the darlings of both sectors -- financial and technology -- running up huge gains. It has been a different story over the past year as many have had huge losses. Is now the time to buy fintech stocks? As always, it depends on the stock, but here are a few things to consider.
Source Fool.com
