In this article, we will be looking at the 5 best digital money stocks to invest in. To see our detailed analysis of the digital payments sector, you can go directly to the 10 Best Digital Money Stocks to Invest In.
5. MercadoLibre, Inc. (NASDAQ: MELI)
Number of Hedge Fund Holders: 69
MercadoLibre, Inc. (NASDAQ: MELI) is an operator of online commerce platforms in Latin America and owns Mercado Libre Marketplace, an automated online commerce platform alongside Mercado Pago FinTech, a fintech solutions platform. The company ranks 5th on our list of the best digital money stocks to invest in.
Morgan Stanley is bullish on MercadoLibre, Inc. (NASDAQ: MELI) with an Overweight rating and a $2,260 price target, versus the Street’s $1,902.29 price target. This May, MercadoLibre, Inc. (NASDAQ: MELI) also announced its purchase of $7.8 million worth of bitcoin to be added to its balance sheet.
This June, Citigroup also raised its price target on MercadoLibre, Inc. (NASDAQ: MELI) to $2,250 with a Buy rating. Stifel has a Buy rating on the stock with a $1,800 price target, while Credit Suisse has an Outperform rating on the stock, as of this May. In the first quarter of 2021, MercadoLibre, Inc. (NASDAQ: MELI) had an EPS of -$0.63, missing estimates by -$0.64. The company’s revenue was $1.38 billion, up 111.39% year over year, and beating estimates by $215.14 million. The company has a gross profit margin of 49.22% and the stock has gained 55.62% in the past year.
As of the end of the first quarter of 2021, 69 hedge funds out of the 866 tracked by Insider Monkey held stakes in MercadoLibre, Inc. (NASDAQ: MELI), worth roughly $5.22 billion. This is compared to 79 hedge funds in the previous quarter, with a total stake value of about $8.76 billion.
Baron Funds, an asset management firm, mentioned MercadoLibre, Inc. (NASDAQ: MELI) in its first-quarter 2021 investor letter. Here’s what they said:
“MercadoLibre, Inc., a Latin American e-commerce and FinTech platform, declined in the quarter despite reporting very strong fourth quarter results. MercadoLibre falls into a category of businesses that were net beneficiaries of last year’s lockdowns and reduced consumer gatherings that fell out of favor this quarter as investors looked toward economic reopening and normalization. We are confident in MercadoLibre’s ability to create substantial long-term value as it grows into a regional powerhouse across e-commerce and financial services.”
4. Square, Inc. (NYSE: SQ)
Number of Hedge Fund Holders: 92
Square, Inc. (NYSE: SQ) is a creator of tools to enable sellers to accept card payments and provides reporting and analytics alongside next-day settlement. The company’s hardware products such as the Magstripe reader enable swiped transactions of magnetic strip cards, and it offers a range of related products and services. It ranks 4th on our list of the best digital money stocks to invest in.
Wells Fargo has commented this June that the eWallet growth in recent years will lead to companies like Square, Inc. (NYSE: SQ) gaining the most, especially as Square, Inc. (NYSE: SQ) itself has its own proprietary wallet app. The stock has also received a Buy rating and a $275 price target from D.A. Davidson, with analyst Christopher Brendler calling Square, Inc. (NYSE: SQ) the best fintech disruption.
Square, Inc. (NYSE: SQ) CEO Jack Dorsey has also mentioned that the company might be making a hardware wallet for bitcoin, resulting in a rise in the stock’s popularity this June. In the first quarter of 2021, Square, Inc. (NYSE: SQ) had an EPS of $0.41, beating estimates by $0.25. The company’s revenue was $5.06 billion, up 266.17% year over year and beating estimates by $1.71 billion, and it has a gross profit margin of 24.07%. The stock has gained 5.48% in the past 6 months and 14.22% year to date.
As of the end of the first quarter of 2021, 92 hedge funds out of the 866 tracked by Insider Monkey held stakes in Square, Inc. (NYSE: SQ), worth roughly $9.202 billion. This is compared to 89 hedge funds in the previous quarter, with a total stake value of about $8.81 billion.
3. JPMorgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE: JPM) is a financial services company operating worldwide. The company, despite not being a traditional digital money player, ranks 3rd on our list of the best digital money stocks to invest in because of its recent moves into the digital payments and fintech sector with its acquisition of OpenInvest, for instance, which is a fintech company, and 55ip, another fintech company.
This July, JPMorgan Chase & Co. (NYSE: JPM) was given a Market Perform rating and a $167 price target at Keefe Bruyette. The stock was also dubbed one of the top stock picks in the financials sector this June and raised its dividend after the Federal Reserve’s stress test to about $1 per share, making it a good choice for income investors.
The company is also acquiring a 40% stake in C6 Bank in Brazil, as of June 28th. In the first quarter of 2021, JPMorgan Chase & Co. (NYSE: JPM) had an EPS of $4.59, beating estimates by $1.53. The company’s revenue was $32.27 billion, up 14.21% year over year and beating estimates by $1.96 billion. The stock has a forward PE ratio of 11.64 and has gained 12.9% in the past 6 months and 21.87% year to date.
As of the end of the first quarter of 2021, 111 hedge funds out of the 866 tracked by Insider Monkey held stakes in JPMorgan Chase & Co. (NYSE: JPM), worth roughly $5.25 billion. This is compared to 112 hedge funds in the previous quarter, with a total stake value of about $6.96 billion.
2. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ: PYPL) is a technology platform and digital payments company that works to enable digital and mobile payments for consumers and merchants across the world. The company’s payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, and iZettle. It ranks 2nd on our list of the best digital money stocks to invest in.
On June 30th, PayPal Holdings, Inc. (NASDAQ: PYPL) launched its new digital solution for smaller businesses in the US, by the name of PayPal Zettle. The same month, the stock received a Buy rating from D.A. Davidson alongside a $325 price target, and Credit Suisse also kept its Outperform rating on the stock with a $315 price target.
The company also invested about $300 million alongside Visa Inc. (NYSE: VISA) in Blockchain Capital, in a bid to make digital currencies accessible to all. Bank of America also has a Buy rating on PayPal Holdings, Inc. (NASDAQ: PYPL) with a $323 price target, and commented that the recent pricing changes announced by the company that raised the prices of PayPal transactions by 3.49% are another reason to be bullish on the stock.
In the first quarter of 2021, PayPal Holdings, Inc. (NASDAQ: PYPL) had an EPS of $1.22, beating estimates by $0.20. The company’s revenue was $6.03 billion, up 30.64% year over year and beating estimates by $128.36 million, and it has a gross profit margin of 48.4%. The stock has gained 25.83% in the past 6 months and 27.52% year to date.
As of the end of the first quarter of 2021, 143 hedge funds out of the 866 tracked by Insider Monkey held stakes in PayPal Holdings, Inc. (NASDAQ: PYPL) worth roughly $14.71 billion. This is compared to 147 hedge funds in the previous quarter, with a total stake value of about $15.96 billion.
1. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 164
Visa Inc. (NYSE: V) is a payments technology company operating worldwide. It facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It ranks 1st on our list of the best digital money stocks to invest in.
This June, Visa Inc. (NYSE: V) was among the contributors in the $300 million raised by Blockchain Capital to make digital money more accessible, and it also announced its acquisitions of the fintech startup Tink for about $2.1 billion. CFRA also mentioned Visa Inc. (NYSE: V) in its list of best buys in the information technology sector. In the same month, Credit Suisse raised its price target on Visa Inc. (NYSE: V) to $285, while keeping its Outperform rating on the stock. Piper Sandler also has an Overweight rating on Visa Inc. (NYSE: V) with a $260 price target.
In the fiscal second quarter of 2021, Visa Inc. (NYSE: V) had an EPS of $1.38, beating estimates by $0.11. The company’s revenue was $5.73 billion, beating estimates by $175.03 million, and it has a gross profit margin of 96.6%. The stock has gained 12.08% in the past 6 months and 10.05% year to date.
As of the end of the first quarter of 2021, 164 hedge funds out of the 866 tracked by Insider Monkey held stakes in Visa Inc. (NYSE: V), worth roughly $26.5 billion. This is compared to 166 hedge funds in the previous quarter, with a total stake value of about $23.5 billion.
ClearBridge Investments, an investment management firm, mentioned Visa Inc. (NYSE: V) in its first-quarter 2021 investor letter. Here’s what they said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
You can also take a look at 17 Largest Fintech Companies in the World and 15 Fastest-Growing Fintech Companies.
