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3 Overvalued Fintech Stocks to Avoid in December -Breaking

by Mike Robinson

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© Reuters. Three Overvalued Fintech Stocks You Should Avoid In December

Over the past 18 months, several fintech firms have grown due to COVID-19-related restrictions. Fintech may soon face fierce competition, however, as traditional banks improve their product and technology offerings and the economy slowly recovers, and fintech companies could be up against stiff competition. SoFi Technologies, SOFI and Affirm are all good options to stay away from fintech stocks. Futu Holdings (NASDAQ:) currently because their prices are high. Keep reading. The pandemic accelerated consumers’ digital adoption, which could otherwise have taken years to develop. The pandemic was a challenge for most fintech firms, who responded by offering seamless and secure digital services at minimal cost to customers.

Although Fintech has seen a dramatic increase in its popularity since the outbreak of the pandemics, traditional banks continue to be fierce competitors. According to BankDirector’s 2021 Technology Survey, banks have increased their technology spending by a median of 10%. Also, investor pessimism concerning the fintech space is evident in the Global X FinTech ETF’s (FINX) 16.5% loss over the past month.

We believe it would be prudent to steer clear of fintech stocks Affirm Holdings, Inc., SoFi Technologies, Inc., and Futu Holdings Limited. These stocks are overpriced at current prices.

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