Tech stocks have faced challenges lately, and fintech companies have been hit particularly hard. On March 10, CNBC reported that the Nasdaq experienced its biggest drop since 2022 with financial technology companies being some of the biggest losers. These companies included stock trading apps and cryptocurrency exchanges, which suffered due to a drop in Bitcoin prices. Bitcoin declined by nearly 5%, continuing a downward trend. The leading cryptocurrency has fallen 19% over the past month.
Beyond crypto, other fintech sectors like online lenders and payments companies also suffered. These companies also declined more than the broader market.
Fintech analysts point to declining consumer confidence as a potential challenge, especially for companies that rely on consumer spending. In February, the Conference Board’s consumer confidence index fell to 98.3, falling by nearly 7%. This decline marked the largest monthly drop since August 2021. According to CNBC, analysts noted that while fintech companies had performed relatively well since the election, sentiment has recently turned sour due to declining consumer confidence and signs of slowing discretionary spending.
The current fintech sell-off came after a strong rally in the fourth quarter of 2024, which was driven by expectations of Fed rate cuts and hopes for a more favorable regulatory environment under the Trump administration.
Despite a challenging time, fintech companies continue to invest in new technologies. This is leading to significant innovation and disruption in financial services. Additionally, recent declines could present a buying opportunity as certain fintech companies are setting themselves to perform well in the future.
Methodology
To compile our list of the 20 best fintech stocks to buy according to billionaires, we looked for the biggest fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks. Next, we focused on the top 20 fintech stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 20 best fintech stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Intuit Inc. (INTU) The Best Fintech Stock to Buy According to Billionaires?
A professional tax preparer, using a laptop to complete an income tax return.
Intuit Inc. (NASDAQ:INTU) is an American multinational business software company that is primarily focused on financial technology and software. The company offers a range of products and services such as TurboTax for tax preparation, QuickBooks for small business accounting, Credit Karma for credit monitoring and personal finance, and Mailchimp for email marketing. Intuit Inc. (NASDAQ:INTU) is one of the best fintech stocks to buy according to billionaires.
On February 26, BMO Capital analyst Daniel Jester set a price target of $714 for Intuit Inc. (NASDAQ:INTU) and maintained a “Buy” rating based on a combination of factors that highlight INTU’s strong performance and promising growth prospects. The company’s Q2 fiscal 2025 results were solid, with notable growth in QuickBooks Online (QBO) and Credit Karma. This helped Intuit Inc. (INTU) drive a 14% increase in EPS for the first half of fiscal 2025. Jester highlighted the company’s effective execution in the tax segment as a key short-term catalyst, while AI investments and the middle-market QuickBooks segment offer medium-term opportunities to support sustained growth. Despite challenges in Mailchimp’s target market, QuickBooks Online revenue grew significantly. The consumer segment shows promise with a positive start to the tax season, with robust growth in Credit Karma expected to boost TurboTax adoption. Additionally, investments in AI continue to improve efficiency and margins. This presents modest upside potential for Intuit Inc.
Overall, INTU ranks 9th on our list of the best fintech stocks to buy according to billionaires. While we acknowledge the potential of INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
