Thread by @Biotech2k1

#Fintech upadate:

I went through $SQ, $COIN, $HOOD, $PYPL, $AFRM and $SOFI. I looked at what each company offers as services. I listened to the Q1 calls to see if the management seems to be competent.

My rankings after stage 1 was

1. $SQ
2. $PYPL
3. $COIN
4. $AFRM
5. $SOFI
6. $HOOD

Then I went through the valuation, future potential and risks. I crossed off $PYPL on lack of future growth potential. They are already at $30 billion sales only growing about 13% a year.

I crossed off $COIN based on the risk of having too much crypto since I already have a crypto portfolio of my own. I really liked the management, but I wanted more diversification.

I really liked the $ARFM story and management. They are a bit more expensive then the rest, but they also have more growth than the rest. I moved them up to number 2 after cut $PYPL and $COIN.

I think $SOFI and $HOOD was a bit more difficult. I opted to go with $SOFI as they have only about 5 million accounts when big banks can have upward of 60 million. There is a lot of room for expansion.

I crossed off $HOOD even though it was really cheap. They have a shrinking business right now as all those pandemic traders abandon the market. They may never come back. Their management didn't give me the confidence they would handle the "shrink to grow" strategy.

My 3 picks here are $SQ, $AFRM and $SOFI. I still have to go over the 10Q's to ensure there is no big scary problems hiding in there.