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Although the Fintech space has benefited dramatically since the onset of the pandemic, it faces intense competition from traditional banks. 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.
Given this backdrop, we think it could be wise to avoid fintech stocks Affirm Holdings, Inc. (AFRM), SoFi Technologies, Inc. (SOFI), and Futu Holdings Limited (FUTU). They look overvalued at the current price level.
