Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

This Invisible Company Powers Almost the Entire Finance Industry

Companies / Tech Stocks Nov 20, 2019 - 04:44 PM GMT

By: Stephen_McBride

Companies

Justin Spittler : The days of going to a bank are coming to an end.

In the past 10 years, 15,000 bank branches have shut their doors for good. And foot traffic to banks has fallen by 50%. Bank branches are shutting down left and right for a simple reason... They’re useless!

These days, you can deposit a check by taking a photo with your phone. You can open a bank account or order a new credit card in five minutes over the internet. You can even take out a mortgage without ever seeing a human banker, thanks to disruptive services like Quicken Loans.

And it’s not just banks. Digital disruption is eating away at every “old” business model in finance. Everyone from stockbrokers to financial planners is under assault.


What Is “Money” These Days?

Money used to represent a claim on a “real” asset like gold, silver, or land. Then money became paper. Paper money has no ties to anything “real”... but at least you can see it and touch it.

Now even paper cash is fading away. How often do you pay with cash? If you’re like most Americans, probably not very often.

More and more, money is just digital entries in computers. There’s no physical trace... it’s going 100% digital.

The “business” of money is going the same way. Banks are closing their doors… stockbrokers are dying off... even hedge fund managers are losing their jobs to computers.

The digitization of everything money is an unstoppable, “carved-in-granite” trend. One that’s already minted a lot of millionaires... and is going to mint a whole lot more.

In this article, I’ll tell you about a tiny company that makes the financial “plumbing” of the internet. It’s growing like crazy... you likely use its service without knowing it... and you’ve probably never heard of it.

The Transformation of Finance Has Already Made Many Investors Fortunes

For example, Intuit (INTU) has gained 849% since it went public:



Intuit (INTU) owns Quicken Loans—America’s largest mortgage lender. It’s the fastest growing company in its industry… and it’s achieved all this without any physical branches! Everything is done online or over the phone.

Square (SQ) disrupted cash registers and gained 674% in under four years.  



If you don’t know Square, it’s a godsend for small business owners. It makes the little white boxes that plug into your phone to swipe a credit card. Square also owns the popular CashApp, which lets you send money instantly—similar to PayPal or Venmo.  

These are staggering returns. But they’re just a taste of what’s to come...

There’s a Huge Pipeline of “Fintech” Companies About to Go Public…

Today, 414 private companies are worth more than $1 billion. And get this… 52 of them are fintech!

Venture capitalist (VC) investors have poured capital into fintech startups for a simple reason: huge profits are a stake.

The global financial services industry is one of the biggest on the planet. It’s poised to be worth nearly $27 trillion by 2020. That’s far more than the annual economic output of the United States!

No serious investor can afford to ignore the exciting things happening in fintech.

I’ve studied practically every private fintech company. Several are promising, but my research keeps leading me back to a company called Plaid.

Plaid is far from a household name. You won’t find it in the “app store.” Unlike more famous fintech “unicorn” Robinhood, you won’t see commercials for Plaid on TV.

But Plaid Has Its “Hooks” in 10,000 Banks and Counting

…including giants like Bank of America, JP Morgan, and Wells Fargo.

Plaid serves as a bridge between banks and thousands of apps that involve transferring, spending, or investing money. In short, it built out the digital “plumbing” of fintech.

Plaid’s reach is incredible. According to the company, nearly one out four Americans use Plaid through one app or another.

For example, Plaid allows you to buy bitcoin from your checking account through the app Coinbase. It allows you to trade stocks on Robinhood. It powers popular apps like Venmo and CashApp.

Plaid’s business is booming. Its revenues quadrupled between 2016 and 2018. And it’s reportedly close to producing positive cash flow.

Importantly, Plaid is building a lasting business model... unlike many “hot” private companies that seek “growth at all costs.”

The titans of financial services are betting on Plaid too. Visa (V) and American Express (AXP) invested in Plaid recently. Goldman Sachs (GS) and Citi Group (C) have also backed the company through their venture arms.

Plaid Is Private, and I Can’t Tell You When It Will Go Public Yet...

The company hasn’t yet filed its “S-1,” which companies must file before they go public.

Because of its “boring” business, Plaid probably won’t get a ton of hype heading into its IPO.

It will slide under most investors’ radar. As regular RiskHedge readers know, these are exactly the type of overlooked IPOs that often dish out the biggest gains.

Take Stitch Fix (SFIX) – an online personal styling platform. Heading into its November 2017 IPO, Stitch Fix was valued at just $1.4 billion. There wasn’t much hype around it.

SFIX surged 246% in its first 11 months as a publicly traded company.

Cardlytics (CDLX), which helps banks run reward programs, has zoomed 280% since its February 2018 IPO.

Carvana (CVNA)—an online platform for selling used cars—also had a monster IPO. Since going public at a modest $2 billion valuation in April 2017, CVNA has skyrocketed 703%!

Keep in mind, any individual investor could have bagged these returns. All you had to do was buy these stocks shortly after IPO.

I’ll update you as Plaid moves closer to IPO.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get our latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Justin Spittler

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules