3 Fintech Stocks to Turn $10,000 Into $1 Million: February 2024

Stocks to buy

Traditional banking is transforming, and the banking collapse in 2023 has led to a shift in consumer preference. Consumers are choosing fintech companies over traditional banks, which has led to fintech stocks being hot property. These companies lead the way in payments and innovation. We have seen several businesses grow significantly over the past five years, and if not for the inflationary period, these businesses would have hit new highs already.

However, as we look forward to the rate cut and an improvement in the economy, we will see fintech giants thrive. This means now is the best time to load up on stocks that can turn your $10,000 into $1 million over the years. Let’s look at the three fintech stocks to buy this month. 

Visa (V)

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One of my favorite fintech stocks, Visa (NYSE:V), has steadily reported strong revenue growth. Thanks to its business structure and solid cross-border transactions, the company thrived despite an inflationary period. The company is so much more than just another name on your credit card.

It currently processes the maximum number of transactions in the world, and in 2023, it will have processed over $15 trillion in payment volume—Visa benefits whenever the card is swiped. The company sees higher revenue growth with improved consumer spending and payment trends. 

In the past year, it saw an 11% YOY revenue rise and a drop in payment volume by 9%. This drop could be attributed to the macroeconomic conditions that could in 2024. Visa also has a services business that caters to the needs of other businesses.

It has been investing in building a strong services platform and has acquired Pismo recently. The company plays a huge role in the global fintech environment, and its cross-border solutions are proof of the same. 

Trading at $275 today, the stock is up 14% over the past six months and is very close to the 52-week high of $281. While there are talks that the Capital One and Discover deal will threaten Visa’s business, I disagree. Visa is already an established and highly trusted name in the fintech industry. It can outperform the market and generate significant returns. 

My InvestorPlace colleague Faizan Farooque believes Visa could reach a trillion-dollar valuation shortly. Visa is also a dividend stock and enjoys a yield of 0.76%. This stock can turn your $10,000 into $1 million if you buy and hold it for the long term. 

SoFi Technologies (SOFI)

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Once a student loan specialist, SoFi Technologies (NASDAQ:SOFI) can change how we handle our money. It has become a full-blown financial services provider and is taking giant leaps in the industry. The company recently reported its first ever GAAP profit, and I think this is just the start of something huge.

It is adding customers at a rapid pace and has seen an improvement in the bottom line. At the end of 2023, the company had 7.5 million customers, up 44% year over year, and it aims to add 1 million in each quarter this year. 

The fourth quarter was its first profitable quarter, and it reported a profit of $48 million. Its revenue was $615 million, up 44% YOY, and the financial services segment saw over 100% revenue growth while the lending segment was up 24%.

This shows that the company has products that meet the needs of consumers. The company has a diversified portfolio of lending and non-lending products, and this will help achieve growth. I also believe there will be a rise in demand for personal loans due to the resumption of student loan payments. 

However, the company still has to have a fully profitable year, but it could be heading there. If it can continue with the strong user growth, we could see the company report exceptional numbers. This year could be transitional for the company, and as the economic conditions improve, SoFi will keep soaring.

SOFI stock is trading at $8.51 today and looks relatively cheap. The stock hasn’t moved much over the past six months and has traded between $8 and $10. Despite reporting strong results, the stock hasn’t seen much upside, and this is your chance to grab it. You might not see immediate results, but this stock wouldn’t disappoint.

PayPal (PYPL)

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Inflationary periods, high interest rates, and low consumer spending have impacted PayPal Holdings (NASDAQ:PYPL), and the business has suffered more than it deserved. It saw a slower growth in 2023, and many investors were disappointed with the quarterly numbers.

However, if you look at the results independently, they are still impressive, and the growth is healthy. It reported a net revenue rise of 9% YOY, and its total payment volume was up 15% YOY.

While the numbers might be lower than the previous years, it is still worth considering. The company makes revenue through transaction fees; as the active accounts increase, it can see higher revenue. The company has 426 million active accounts and a global presence, which shields it from the market’s ups and downs. 

For hundreds of individuals and merchants, PayPal is the first choice for payment, and this is how the network has been getting stronger over the years. Already a leader in the business, PayPal knows it can survive the macroeconomic conditions. Trading at $58 today, the stock looks very cheap to me and is down 22% in the past year. The stock is trading much lower than $79, which is your chance to make the move. 

Macquarie analyst Paul Golding set a price target of $75 for the stock and maintained a buy rating on PYPL stock. Analysts expect growth to increase in 2025, and we could see a strong top-line growth. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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