Financial technology companies received a lot of hype over the past several years. Some were calling for these small companies to pose a very real threat to traditional banks. However, larger firms have adapted and are ramping up offerings that are competitive with the low fees and perks offered by start ups.
Today we are going to look at two fintech companies that dipped their toes into the cryptocurrency market when it was red hot early last year.
GoldMoney (TSX:XAU) is a Toronto-based fintech company that operates a gold based financial services platform. In late 2017 GoldMoney began to sell more bitcoin on its platforms than precious metals. The platform still offers trading in bitcoin and Ethereum. In the third quarter of fiscal 2019 GoldMoney reported consolidated revenues of $84 million which was up 21% from the previous quarter.
GoldMoney stock has dropped 7.5% in 2019 as of close on February 21. At an RSI of 45 shares are in neutral territory in late February. The stock has plunged 60% year-over-year and does not look worth the gamble right now.
Mogo Finance (TSX:MOGO)(NASDAQ:MOGO) is a Vancouver-based fintech which offers platforms geared towards the millennial demographic.
Shares have dropped 4.7% in 2019 and are down 35% year over year. Mogo opened more than 200,000 new members accounts in 2018 and has reported solid increases in subscription and services revenue in recent quarters.
The company is set to release its fourth-quarter and full-year results in early March. The stock is not technically oversold, but if the stock drops below the $3 mark in late February investors should think about pulling the trigger ahead of its next earnings release.
