My Favorite Sector Just Got Cheaper

Nov 28, 2021

Digital Wallets are Still Flexing

Last week investor fears surrounding the potential return of COVID-related restrictions and cuts in spending sent payment-related stocks tumbling.

Shares of major payment providers, including PayPal Holdings (PYPL), Square (SQ), Visa (V), and American Express (AMX), are still trading well below levels achieved last month.

Is this short-term haircut an opportunity for long-term investors?

Consumer data suggests yes, but maybe not across the board.

The key is spotting which names are most likely to come out on top.

That’s where LikeFolio data comes into play.

We’re listening in real time to understand what payment providers are most loved and most used by consumers.

In fact, we’ve had our eyes on a major shift in the payment space for months: the rise of digital wallets.

Not only are companies like PayPal and Square benefitting from a consumer preference to manage financial transactions digitally, but both companies are expanding their offerings from cryptocurrency support and peer-to-peer payments to traditional services like payroll and direct deposit.

And consumers are drawing a clear line in the sand when it comes to which providers are serving up the best user experience.

Here’s an updated behind-the-scenes view of data from a MegaTrends report we released months ago…

Can you see the theme?

Digital wallet providers boast the happiest consumers and are being propelled by a major shift in consumer preference.

In fact, we just released an Opportunity Alert to LikeFolio members featuring one of the names on this list…

And three of these names are featured on our Top 10 MegaTrends Active Buy List.

At the end of the day, it helps to have access to real-time consumer data.

While the Street may be spooked, data suggests digital wallet providers have a leg up on the rest of the legacy players.

Keep an eye on this space as consumers continue to shop for the holiday season… As we discussed yesterday, it’s slated to be a BIG one.

Andy Swan,
Founder, LikeFolio