Is your goal to make more money for yourself or maybe you are trying to be the next Warren Buffet. The first step to making money is by investing it, so if you are ready to take the first step, it’s time for you to learn how to invest in stocks on cash app.
The following article will help you understand how to invest in stocks on Cash App. We all know how important it is to have financial discipline when making investment decisions. The following steps provide you with a sound way to investing in stocks with minimal risks.
This platform is a good fit for: Beginning investors may see the most value, both from the lack of commissions and ability to invest small amounts via fractional share purchases. Investors wanting to use Cash App for IRAs and other investments (for example, options and mutual funds) will want to look elsewhere. We’ll be keeping an eye on these additional features, since the app may become a more robust investing platform in coming months and years.
Pros
- No commissions
- Great for beginning investors with fractional share investing
- Cash management features
Cons
- Limited investment options
- Limited account types
Top perks
Easy to use
Investing with Cash App is designed to be as easy to use as possible. One of the biggest obstacles non-investors complain about is they “don’t know how to get started.” With Cash App Investing, it’s easy. Simply open the Cash App, decide how much you want to invest in a particular stock, and make a purchase. The app needs to collect some legally required information such as your Social Security number, but it’s a quick and easy process.
No commissions
Like many brokerages, Cash App Investing doesn’t charge commissions for stock transactions.
Fractional shares investing
Cash App Investing is one of the few options for investors who want the ability to buy fractional shares of stock. For example, to buy one share of Amazon.com, you’ll need more than $3,120 as of mid-January 2021. With Cash App Investing, you can buy a piece of your favorite stocks for as little as $1.
Cash App integration
To trade stocks using Cash App Investing, you don’t need a separate app. You can trade stocks, send and receive money from other Cash App users, buy and sell bitcoin, and more.
What could be improved
Nothing but stocks
Cash App Investing allows investors to buy and sell stocks (and bitcoin, elsewhere in the Cash App), but does not support mutual funds, stock options, or bonds. While these and other types of investments may eventually be offered, Cash App Investing is not an excellent option for people who want to invest in pretty much anything other than stocks and ETFs.
Tools and research
Cash App Investing offers some tools for beginning investors, such as its “my first stock” tutorial, but it doesn’t offer access to stock research or thorough educational tools. The platform is designed for beginning investors and those who just want to dip their toes into the stock market. Investors who want to learn more or take a more analytical approach to choosing stocks may be better served with another brokerage.
IRAs or other account types
The only account type offered by Cash App Investing is standard, taxable, self-directed brokerage accounts. You can’t open a joint account, and the platform doesn’t support IRAs, solo 401(k)s, trusts, educational accounts, UTMA accounts, or any other type offered by other brokerages.
No margin
To be clear, at The Ascent we generally discourage investors from trading on margin, which essentially means buying stocks with borrowed money. However, there are some cases where it can make sense, and many active investors like having margin access. At this point, Cash App Investing doesn’t support margin trading.
Is Cash App the right investment app for you?
Cash App Investing could be a good fit for existing Cash App customers who want to actively invest and place trades at no cost. If you don’t currently have a Cash App account, you can still sign up and take advantage of the company’s investment offerings.
Just note that you won’t be able to invest in any other securities beyond stocks, ETFs, and Bitcoin. If you’re looking to invest in mutual funds, bonds, options, real estate, or any other investments, you’ll need to consider other investment apps like Merrill Edge, Fidelity, and Vanguard.
Cash App investing probably isn’t a good option for hands-off investors who are looking for the guidance of a human financial advisor or the help of an automated investment app. If you’re looking for advisors that can help you make smart decisions, you should consider other apps like Betterment and Ellevest.
It’s also worth noting that Cash App recently faced backlash from users after its clearing broker, Axos, temporarily halted trading on Gamestop (GME) and several other stocks that skyrocketed due to a Reddit-influenced price surge. Other apps like Robinhood and Webull also temporarily restricted trading on multiple hot stocks, though they have all since lifted the pause on trades. If this gives you pause, consider other options from our list of the best investment apps.
Best Cash App Stocks to Invest In
10. Fiserv, Inc. (NASDAQ: FISV)
Number of Hedge Fund Holders: 75
We start our list of the 10 best cash app stocks to invest in with Fiserv, Inc. (NASDAQ: FISV). The Wisconsin-based fintech company provides digital commerce services, digital banking, and credit and debit card processing. Fiserv, Inc. (NASDAQ: FISV) offers over 100 million banking users worldwide digital financial services.
Fiserv, Inc. (NASDAQ: FISV) saw its stock gain 1.5% on July 13 after the New York Fed published its Survey of Consumer Expectations, revealing that consumers expect mean household expenditure to rise by 5.2% in June. On July 16, Ivan Feinseth of Tigress Financial maintained a Buy rating on Fiserv, Inc. (NASDAQ: FISV) and set a 12-month price target of $148 per share. The fintech firm is well-positioned to capitalize from e-payments and post-pandemic operations, according to the analyst.
The company has a market cap of $72 billion. In the second quarter of 2021, Fiserv, Inc. (NASDAQ: FISV) reported an EPS of $1.37, beating estimates by $0.09. In the second quarter, the company’s revenue grew 17% year over year to $4.05 billion and beating revenue estimates by $141.3 million. The stock has gained 9% in the last twelve months.
At the end of the first quarter of 2021, 75 hedge funds in the database of Insider Monkey held stakes worth $2.75 billion in Fiserv, Inc. (NASDAQ: FISV), down from 98 in the previous quarter worth $5.18 billion.
Just like Alphabet Inc. (NASDAQ: GOOGL), Apple Inc. (NASDAQ: AAPL), Square, Inc. (NYSE: SQ), Sea Limited (NYSE: SE), and PayPal Holdings, Inc. (NASDAQ: PYPL), Fiserv, Inc. (NASDAQ: FISV) is a good cash app stock to invest in according to market analysts.
Square, Inc. (NYSE: SQ)
Number of Hedge Fund Holders: 92
Digital payment solutions provider Square, Inc. (NYSE: SQ) is ranked eighth on the list of 10 best cash app stocks to invest in. The San Francisco-based fintech company provides e-commerce and banking financial solutions. Square, Inc. (NYSE: SQ) also operates the peer-to-peer money transfer app Cash App, launched in 2013. As of June 2021, Cash App provided access to over 40 million monthly transacting active customers to the stock market.
On August 3, Canaccord analyst Joseph Vafi maintained a Buy rating on Square, Inc. (NYSE: SQ) and increased the firm’s target to $310 per share from the previous $280, highlighting the Afterpay Limited (OTC: AFTPY) acquisition will accelerate Cash App’s buy now, pay later feature.
In the second quarter of 2021, Square, Inc.’s (NYSE: SQ) total net revenue grew 143% year over year to $4.68 billion. Meanwhile, Cash App generated a gross profit of $546 million, up 98% year over year. The company reported an EPS of $0.66, beating estimates by $0.35. The stock has gained 29% year to date.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Square, Inc. (NYSE: SQ) 1,502,742 shares worth more than $366.3 million.
Just like Alphabet Inc. (NASDAQ: GOOGL), Apple Inc. (NASDAQ: AAPL), Sea Limited (NYSE: SE) and PayPal Holdings, Inc. (NASDAQ: PYPL), Square, Inc. (NYSE: SQ) is a good cash app stock to invest in according to market analysts.
Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 127
Apple Inc. (NASDAQ: AAPL) is ranked sixth on the list of 10 best cash app stocks to invest in, with Apple Pay being accepted as a digital payment option at 90% of retail outlets in the US. Apple Pay is the mobile payment platform used by 43.9 million people in the United States.
According to Bloomberg, Apple Inc. (NASDAQ: AAPL) is in collaboration with Affirm Holdings, Inc.’s (NASDAQ: AFRM) PayBright to launch a Buy Now, Pay Later (BNPL) service for Apple items in Canada beginning August 11.
In the third quarter of 2021, Apple Inc. (NASDAQ: AAPL) recorded an EPS of $1.30, beating estimates by $0.29. The company’s third-quarter revenue was $81.43 billion, increasing 36% year over year, beating revenue estimates by $8.09 billion. The company’s service segment, which includes Apple Pay, Apple TV+, and App Store, saw a 28% jump in revenue to $17.5 billion, up from $13.7 billion in the same period in 2020.
Ananda Baruah of Loop Capital maintained a Buy rating on Apple Inc. (NASDAQ: AAPL) on July 29 and increased the firm’s price target to $165 per share from $150. Shares of Apple Inc. (NASDAQ: AAPL) climbed 15% in the last three months.
At the end of the first quarter of 2021, 127 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ: AAPL), worth roughly $130.9 billion.
Conclusion
Nowadays, it’s difficult to make money on the stock market, but Cash App has become one of the most popular ways that people are making their investment dreams come true. You can invest in stocks directly through Cash App. It’s an awesome way to invest because if you put the time into really research the companies that you’re investing in, you can make a lot of money.