Welcome to Extreme Investor Network, where we provide you with expert insights and analysis on the latest trends in the world of investing. Today, we are discussing how this earnings season could be a game-changer for the often overlooked fintech sector.
According to Wolfe Research’s technical analyst Rob Ginsberg, the Global X FinTech ETF (FINX) is starting to look attractive after a period of underperformance compared to the broader market. With many fintech and financial service companies set to announce their earnings in the coming weeks, there is a potential for a resurgence in this sector.
The FINX ETF, with over $300 million in assets, has shown signs of a rebound in 2024 after a sharp decline in late 2021. Despite challenges, it has delivered a total return of over 7% in the past three months. With top holdings like Paypal yet to announce their earnings, there is still room for growth in this fund.
Ginsberg highlighted some positive technical signals for the ETF, such as an uptrend since October and strong trendline support. However, it is essential to note that earnings reports can also be a downside catalyst for financial technology stocks and the fund, so investors should proceed with caution.
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