Investing in high-growth fintech stocks, such as Square (SQ) and PayPal (NASDAQ:PYPL), has been a profitable endeavor for investors in recent years. The two companies continue to expand their suite of products and solutions and are betting big on cryptocurrency trading which will be a key revenue driver in 2022 and beyond.Fintech giants such as Square (SQ) and PayPal (PYPL) have generated massive wealth for investors. Square was listed on the NYSE in November 2015 and has surged a monstrous 1,300% in just over six years. PayPal went public in July 2015 and has since gained 433%.
The two stocks have easily outpaced the broader markets and command multi-billion-dollar valuations. The COVID-19 pandemic acted as a tailwind for fintech companies as the demand for digitally-powered solutions increased rapidly in the last 20 months.
Alternatively, the growth rates for both Square and PayPal have decelerated in 2021 and the two stocks are now down 35% and 38% respectively from all-time highs. Today I’ll analyze both stocks to try and determine which is currently a better buy for investors in 2022.