After commanding premium valuations during the height of the COVID-19 pandemic, fintech stocks have fallen considerably due to the economic and geopolitical headwinds.
Fintech stocks have faced a fate similar to technology stocks as investors shifted from these high-growth and expensive names amid the rising interest rate environment. This is evident from the ARK Fintech Innovation ETF’s (ARKF) 50.3% decline year-to-date, compared to the S&P 500’s 13% loss.
