5 Best Fintech Stocks to Buy After the Selloff

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In this article, we discuss 5 best fintech stocks to buy after the selloff. If you want to read about some more fintech stocks, go directly to 12 Best Fintech Stocks to Buy After the Selloff.

5. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 65    

Sea Limited (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial service businesses. It is one of the best fintech stocks to invest in. Media reports indicate that the company is preparing to let go 3% of Shopee employees in Indonesia. The move is part of a broader wave of regional job cuts intended to curb ballooning losses and win back investors.  

On August 17, Citi analyst Alicia Yap maintained a Buy rating on Sea Limited  (NYSE:SE) stock and lowered the price to $129 from $145, highlighting that the suspension of e-commerce fiscal 2022 revenue guidance raised concerns on the growth prospects for the firm beyond macro and currency headwinds. 

At the end of the second quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Sea Limited (NYSE:SE), compared to 77 in the previous quarter worth $5.1 billion.

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:

“Sea Limited (NYSE:SE), a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”

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