At beginning of 2020 a16z declared ‘Every Company Would Be A Fintech Company‘. Have a read.
The essay is great, the thesis on point, but for fintech PUBLIC companies the top was near.
‘Modern’ (web 2.0) fintech stocks (Coinbase, Robinhood, Square, Marqueta, Paypal, SOFI, ARKF, Lemonade) have been in a nasty bear market/pullback/correction the last THREE months. During that time the old fintech companies (banks, brokerages and credit card companies) we all had agreed we hated are doing very well (of course this comes on the heels of a legendary run in private and public markets for all of these same companies the last FIVE years).
Let me share a few graphs you can click on to enlarge to give you some context (I use Koyfin a portfolio company).
First the 1 year graphs:
Here are the three year graphs:
If every company is indeed a fintech company it makes sense that margins for this last batch of fintech companies are suffering.
The key is what happens next and I will dive into that over the weekend and next week.