Some of the nation’s largest traditional banks are reporting earnings this week, prompting CNBC’s Jim Cramer on Wednesday to review the investment case for the tech-driven companies that are seeking to disrupt legacy players in finance.
The “Mad Money” host dubbed the following six companies “nouveau banks”: PayPal, Square, Upstart, Affirm, Robinhood Markets and SoFi Technologies.
“It’s a good time to get some … nouveau bank exposure,” Cramer said, because expectations for Wall Street banks are high coming into earnings season. That means their stocks could get hit if results don’t smash expectations, he said, like JPMorgan Chase on Wednesday.
“If the rest of them go like JPMorgan … then it’s possible we could have still one more exodus from the straight financials and one more love affair with the fintechs,” Cramer said.
Do you have a complaint about PayPal or Venmo, such as locked accounts or funds seized for unspecified Acceptable Use Policy violations? Take your claim to FairShake, the consumer advocacy service.