Close menu




March 9th, 2021 | 10:56 CET

Square, Marble Financial, Commerzbank - Now the banking and finance stocks are going

  • Investments
Photo credits: pixabay.com

When bull market movements persist and tech and hype topics have all run back and forth, one likes to remember an often neglected stock market segment: banking and financial stocks. These stocks are mostly called late cyclicals because, in a typical upswing scenario, the banks' original growth financing takes place first under high risks. Only when the economy does well again does the transaction volume increase on both the credit and asset sides. Of course, companies that participate in payment transactions always exist. Let's see which financial stocks are currently convincing.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: US8522341036 , CA5660551097 , DE000CBK1001

Table of contents:


    Square - Music streaming and payment services under one roof

    Rapper Jay-Z's music streaming service Tidal is getting a new owner. Twitter CEO Jack Dorsey's mobile payments Company Square is taking a majority stake for USD 297 million. According to the payment service, Jay-Z is expected to join Square's board of directors as part of the deal. Dorsey had founded Square during a hiatus at Twitter and now heads both companies. He raised the obvious question of how a streaming service and a financial services company fit together in a series of tweets. He also answered himself: It's about new ways for musicians to make money from their work, he said.

    Indeed, Square has created new opportunities for small merchants with its smartphone and tablet checkout system "CASH" - and the experience could also be useful in the music industry. As Jack Dorsey has since announced via Twitter, he wants to expand the ecosystem with this investment. What happens for merchants and customers in the payment service provider segment should also become possible for artists in the future. Tidal, though, is not considered incredibly successful or innovative as far as the streaming market is concerned. It could become a cash burner for Square.

    The Square share initially went on a dive with the news and fell back to EUR 160. Yesterday it cost EUR 182 again - the high from February was EUR 232. Even with Tidal, the stock remains one of the hottest high-tech stocks on the Nasdaq. There is still a lot of innovation coming to light here that investors have not yet thought about.

    Marble Financial - The financial platform for private households

    Interest rates have been rising more sharply in the US of late. In times like these, that also means that the creditworthiness of borrowers is back in the spotlight. Banks are becoming more restrictive in their lending and people with more complicated financial circumstances are gaining less access to credit. Debt trends in the US can mostly be extrapolated to neighboring Canada. According to Stats Can, Canada's national statistics office, household debt as a share of disposable income rose to 171% by the end of 2020.

    The trend toward ever greater household debt has led to a significant increase among Canadian debtors, who are permanently underfunded and must first slowly rebuild their financial status. The so-called scorecard is deposited with banks and leads to a deterioration of future lending conditions if the debtor cannot improve his score by his own means. This fact has recently been exacerbated because of the expiring government aid programs in connection with Covid-19.

    Marble Financial from Canada has dedicated itself to the segment of lower credit scores and is available to around 12 million Canadians with its service offering. With its 'MyMarble' platform, the Company offers an affordable and sustainable solution for Canadian customers to regain their "financial fitness" via data analysis of household circumstances. The system works with data algorithms and AI technology to provide the right guidance for necessary financial decisions, but most importantly, it brings personal goals into a suitable framework. Especially in these difficult times, Marble Financial offers a great opportunity to structure a struggling personal balance sheet.

    Marble has been building its system since 2016, and thousands of consumers are already using it to put their financial future on a new footing. Marble Financial is only valued at around CAD 16 million, despite its high technological penetration, and banks and financial service providers are just getting ready to jump in. Be sure to take a closer look at this attractive small-cap.

    Commerzbank - light at the end of the tunnel

    Commerzbank seems to be coming off its lowest prices. Since 2008, the value had lost around 95%. The short-term view shows a good doubling from the 52-week low at EUR 2.81 to EUR 5.81 yesterday. For years, the Company attracted new customers with compensation checks. This strategy is now being discontinued because it does not need any expensive current account customers but wants to get to the wealthy clientele. Innovative ideas are required for this. Only recently, the very successful direct bank subsidiary Comdirect was reintegrated into the Group.

    Commerzbank is an interest rate bet, but at the same time, it is also an increasingly transparent corporate story. If interest rates rise, the margin increases! On the cost side, in addition to the well-known cuts in the branch network in Germany, we also see an adjustment abroad, with 15 international locations being closed. None of these locations had so far made a significant profit or contributed positively to the Group's earnings. This measure is expected to reduce the essential fixed cost block by 10-12 percentage points, which means several 100 million EUR of additional income per year. The income statement will then also be much more relaxed.

    In chart terms, a breakout above the EUR 6 mark could lead to a storm for the stock. The slightly rising interest rate level is an elixir for banks because margins in the lending business improve daily as a result. Keep the stock on the watchlist - in trend following and continue to add above EUR 6.00.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by Juliane Zielonka on February 11th, 2025 | 08:40 CET

    Palantir, Credissential, Deutsche Bank – AI separates winners from losers

    • Investments
    • Banking
    • Software
    • AI
    • Technology

    AI is revolutionizing the business world and, for good reason, transforming entire industries. Palantir is setting new standards in data analysis by integrating Grok, the AI chatbot developed by Elon Musk for his X platform. The Canadian tech company Credissential is also pursuing a platform approach. Here, the AI-supported solution is developing a comprehensive package for buying used cars online in the US market. In addition to the vehicle, the software is being developed and marketed to a predominantly young audience and Credissential is building its software to offer appropriate insurance, transfer costs, and other relevant add-ons. Once implemented, the company expects an improved conversion rate by connecting to the digital marketplace. Deutsche Bank is currently facing a fine of EUR 10 million. Employees sold financial derivatives to small and medium-sized companies in Spain, whose risks was largely not communicated.

    Read

    Commented by Armin Schulz on February 6th, 2025 | 07:00 CET

    Deutsche Bank, Globex Mining, Rheinmetall – High-flying stocks for good reason

    • Mining
    • Commodities
    • Banking
    • Investments
    • Defense

    Amid geopolitical tensions, the looming trade war, and interest rate cuts by the ECB, there are still stocks that are not deterred by all the challenges and continue to rise. These high-flyers have either structured their business well or are taking advantage of megatrends such as commodities, which could be at the beginning of a supercycle, or the supply of defense equipment, which is in high demand given the tensions in the world. Investors who identify emerging trends early can make a lot of money, but those who enter the market later can still profit. The prerequisite for this is always a look at the fundamentals.

    Read

    Commented by Mario Hose on January 16th, 2025 | 11:23 CET

    Trading suspension of European Lithium Limited shares in Australia

    • Investments

    The shares of European Lithium Limited have been temporarily suspended from trading on the Australian home exchange ASX. Such trading suspensions often occur when exceptional market movements in price and volume are observed. In the current case, the process appears to be related to an above-average price increase and a significant increase in trading volume.

    Read