Jim Cramer reveals a surprising fintech play that could be worth considering.
"Ever since Facebook rolled out the concept of Libra in a really boring white paper, it's become the big cap stock to beat in this market. On good days it soars. On bad days it's unchanged," the
host said. "Welcome to the world of fin-tech Facebook. You don't have to like it, but you shouldn't let hating Facebook get in the way of owning its stock."in its plan to launch its own cryptocurrency. Facebook's reputation has taken blows, Cramer noted, for its privacy practices along with its inability to eradicate misinformation spread on its platform.
"Fortunately, this made-up currency is cordoned off from the rest of Facebook and backed by a consortium of 27 partners including Facebook, but I think it's helping to change the entire narrative for this ne'er-do-well business," he said. "Imagine if Facebook can get a piece of the payments space, it would be huge — and it will be."
While Libra will be operated as a separate entity by the nonprofit Switzerland-based Libra Association when it launches in 2020, it can be exchanged on Facebook's messaging service. That can potentially connect the Libra coin to billions of people across the world, Cramer said. "For the legislators who're worried about Facebook misusing your data, the idea that they're going to muscle their way into the payments processing [space] it might be alarming," he said. "But if you care about the earnings per share, that sounds like a pretty good story, especially in a market that can't get enough fintech.
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