The financial services sector is in the middle of a massive, overwhelmingly-positive transformation, with changes so impactful that they resonate on a historic level. Is it driving force? Financial technology, also known as fintech. Companies are increasingly using technology to deliver new-look financial services – banking apps, peer-to-peer lending, crowdfunding, and blockchain-based cryptocurrencies – that are bypassing traditional infrastructure and reshaping the financial sector in major ways. Global fintech investment has continued its steady, upwards trajectory over the past half-decade, signaling future prosperity to come. So why is the fintech revolution happening now? And is it here to stay?
Lessons from 2007-2008
2007-2008’s devastating financial crisis caught traditional companies by surprise. New regulations imposed after the dust settled meant energy and resources were spent adapting to sanctions and updating existing structures to fit the new landscape. Innovation was an afterthought as companies worked to bring themselves up to speed. New technologies were left behind.
At the same time, technology and software were influencing previously-unseen changes in new sectors – Uber and Lyft with taxis, Airbnb with hotels, Tesla with the first mass produced, luxurious electric vehicle. In each instance, deeply-entrenched institutions were disrupted by technology. Today and moving ahead, fintech firms are poised to take advantage of the lull brought on by the Great Recession to do the same, but this time with banks and financial services companies.
What Changes are We Seeing?
The modern age is about convenience. Clients want personal service, instant access, simplicity, and transparency; the internet, phones, and computers make these things possible for larger amounts of people than ever before. These tools also mean previously-neglected people are no longer denied access to financial services simply because they live in remote areas or are victim of entrenched biases by traditional financial firms.
Fintech is also providing financial advice and education for groups who were formerly underserved – traditional advisory firms are increasingly the province of the wealthy. Now investors just starting out can receive the full benefit of financial advice, via robo-advisors. Algorithms can help an investor diversify a portfolio and rebalance as it grows.
The benefits even extend to businesses; fintech helps companies cut costs, comply with regulations, and improve the client experience, building trust with their customers. From creating online portals where a client can manage their portfolios and even chat with representatives when the need for help arises, to transferring money to family and friends easily through apps – managing financial lives is being made easier by the day with technology.
Rapid growth brings unique challenges. Fintech companies need to learn how to anticipate and address the same shifting compliance targets that precipitated their rise in the first place – or risk the same fate. But even as they work to stay ahead of the curb, fintech is creating a world where more people than ever have access to financial services. The benefits are here, and they cannot be denied.
At its heart, Tickeron is part of the fintech revolution. It has build algorithms that can help investors build diversified portfolios, and it gives retail investors access to Artificial Intelligence to navigate the markets by finding patterns and trends. It is giving sophisticated tools to everyday investors, which is the essence of the fintech revolution. Learn more about the investment tools Tickeron has to offer on tickeron.com.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where TSLA declined for three days, in of 268 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for TSLA moved out of overbought territory on April 30, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
TSLA broke above its upper Bollinger Band on April 29, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TSLA entered a downward trend on April 26, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on April 29, 2024. You may want to consider a long position or call options on TSLA as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on April 25, 2024. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
TSLA moved above its 50-day moving average on April 29, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.905) is normal, around the industry mean (6.005). P/E Ratio (40.726) is within average values for comparable stocks, (18.064). Projected Growth (PEG Ratio) (2.067) is also within normal values, averaging (5.553). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (6.305) is also within normal values, averaging (74.209).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of electric sports cars
Industry MotorVehicles