|Bid||672.50 x 800|
|Ask||678.40 x 1200|
|Day's Range||661.77 - 675.00|
|52 Week Range||322.82 - 698.98|
|Beta (5Y Monthly)||1.59|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 23, 2020 - Feb 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Dec 26, 2017|
|1y Target Est||669.29|
As stock performances go, PayPal's (NASDAQ:PYPL) gains in 2019 were probably a disappointment for shareholders.Source: JHVEPhoto / Shutterstock.com Normally, a 29% return on any stock, let alone one of the world's leading payment processors, would be considered a success.But 2019 wasn't just any year. The S&P 500 delivered its second-best performance of the decade, up 28.9%. Furthermore, while PayPal stock gained almost 30%, it lagged the S&P 500 Data Processing & Outsourced Services Index by 15 percentage points.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn 2020, with expectations much lower for the S&P 500 and markets in general, if PYPL were to deliver a repeat performance, the stock price would close the year around $140.Here are three things PayPal needs to do in the next 12 months to ensure PYPL stock hits $140. Partnerships Have to Reap RewardsOn Dec. 30, PayPal CEO Dan Schulman announced the company was expanding its partnership with Latin America's biggest e-commerce marketplace, Mercadolibre (NASDAQ:MELI), a stock I've long favored. * 8 of the Strangest Stocks Worth Your Time In March 2019, as part of a $1.8 billion equity offering by Mercadolibre to expand and grow its e-commerce business, PayPal invested $750 million in the Argentinian company. "Digital commerce in Latin America is experiencing tremendous growth and MercadoLibre is well-positioned for continued leadership," Schulman said at the time. "We've been impressed with the digital commerce and payments ecosystem Marcos [Galperin, MELI CEO] and his team have built."However, that was just an investment.2019's end-of-the-year announcement expands the relationship to include PayPal as a payment option for online checkout via Mercado Pago in Brazil and Mexico. In addition, PayPal will be accepted in the MercadoLibre marketplace in Brazil and Mexico for cross-border purchases.As a result, PayPal's 300 million customers can now use the payment processor to buy stuff online in two of Latin America's largest commercial markets.I said in November that if you could afford to buy both PYPL and MELI, you should. Based off December's announcement, I would double down on that sentiment.In the year ahead, I want to see tangible progress from this partnership. If we do, PayPal's valuation multiples could start to creep higher, a necessity if PYPL stock is to hit $140, let alone $200. Additional Revenue Streams for PYPLPayPal announced Jan. 6 that it had completed the $4 billion purchase of Honey, a Los Angeles-based digital shopping and rewards platform."The addition of Honey to our platform enables a significant step forward in our commitment to provide powerful services and tools for merchants and consumers, move beyond our core checkout proposition and significantly enhance the shopping experience for our 300 million consumers and merchants," Schulman stated in a company release. Whether we're talking about PayPal, Square (NYSE:SQ), Shopify (NYSE:SHOP), or any of the other fintech companies participating in and around e-commerce, they all want to offer as many products or services to merchants and customers as they possibly can.The Holy Grail of e-commerce is to become a one-stop shop for merchants and buyers alike. We're not there quite yet, but moves like acquiring Honey bring PayPal that much closer. Business Insider contributor Mike Jaconi said it best in a Jan. 7 opinion piece:"When it comes to loyalty, every company, from multi-billion-dollar businesses like Amazon to your favorite mom-and-pop coffee shop, wants to do the same thing: Convince you to come to them first -- and not their competitors -- as frequently as possible."Honey's entire business model is built on driving commerce. Now, not only can Honey influence what people buy, but it can also influence how they buy those products.That's huge. In 2020, I'll be watching Honey's overall effect on PayPal stock. Continue to Monetize VenmoOne of the things Sanford Bernstein analyst Harshita Rawat would like to see from PayPal in 2020 is further monetization of Venmo, its peer-to-peer payment system. Toward the end of 2019, reports surfaced that Venmo was losing users to Square's Cash App, a sign that the stakes might be higher for PayPal in 2020. According to Macquarie analyst Dan Dolev, Cash App is doing well in Venmo strongholds such as New York, California and Massachusetts. Up until now, Venmo's owned the markets on both coasts, with Cash App ruling in the South and Midwest. However, with new features being introduced such as commission-free stock trading, Cash App is getting the attention of new user demographics, forcing Venmo to keep pace.In the year ahead, I'm not so concerned with the monetization of Venmo as I am about user base losses. Square is catching up, and while I like both stocks, that ought to be a big concern for PYPL shareholders. The Bottom Line on PayPal StockIn 2019, Square stock was soundly beaten by PayPal. In 2020, I think the battle between the two payment processors is going to be a lot closer. Who will win? I couldn't tell you. Long-term, I like PYPL stock. But if PayPal takes care of these three issues, I think it's got a shot at hitting $140.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Three Things PayPal Stock Needs to Do to Hit $140 in 2020 appeared first on InvestorPlace.
Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before last year's Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the […]
MercadoLibre (MELI) is currently plagued with rising expenses, which makes it an unsuitable investment pick. Instead investors can consider these three e-commerce stocks with strong fundamentals.
2019 has been a banner year for U.S. stocks with the Nasdaq Composite Index gaining about 34%. The rally was mainly driven by trade optimism and a dovish Fed.
Mohawk Group Holdings, Inc. Uses Algorithms to Design Products Such as the hOmeLabs Beverage Refrigerator and Cooler Mohawk Group Targets Consumer Product Categories Where Rating Trumps Brand Mohawk Uses AI to Improve Products, Market and Price Them Optimally Mohawk Only Months Away from Positive EBITDA Mohawk Trades at Deep Discount to High-Growth Technology Companies By […]
We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can...
We are still in an overall bull market and many stocks that smart money investors were piling into surged through November 22nd. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 52% and 49% respectively. Hedge funds' top 3 stock picks returned 39.1% this year and beat the S&P […]
Yaniv Sarig, President and CEO of Mohawk Group Holdings, Inc. By Yaniv Sarig For any retail executive, a simple glance at sales trend reports can cause massive handwringing about the state of the retail industry. And for sure, there is reason for some of this doom-and-gloom. On the surface, the statistics can be daunting. In […]
Which stocks are investors thankful for? The answer is clear: massive growth stocks. This is because these names demonstrate the potential for plenty of share price growth. We don’t just mean in the short-term. No, we’re talking over the course of the next few years. However, no one said finding these stocks with stellar growth prospects was going to be easy. At the end of the day, any investment is accompanied by some degree of risk, with no sure-fire way to predict which names will come out on top. So what’s an investor supposed to do?One option is to take advantage of TipRanks.com. The platform’s wealth of market data arms investors with the information they need to see the bigger picture. During our own search, we used the platform to zero in on 3 stocks primed to outperform the market in the coming year and beyond.Let’s dive right in. Mercadolibre, Inc. (MELI)Mercadolibre was developed as an online marketplace for consumers in Latin American countries, with it now expanding its services to cater to the region’s under-banked community through its digital payments system, Mercado Pago. Given that $13.4 billion worth of goods are sold on the marketplace as well as its 93% year-to-date climb, it’s no wonder Wall Street is intrigued. After its third quarter earnings release, its growth story sounds even more promising. In terms of total payment volume (TPV), MELI flew past the $7.2 billion consensus estimate, with the figure coming in at $7.6 billion. In local currency, this amounts to a 190% increase for off-platform and a whopping 300% gain for digital wallet. On top of this, the company was able to add 1.6 million active payers. That being said, the postal strike in Brazil did take a toll on gross merchandise volume (GMV) by $35 million. In spite of this obstacle, GMV still gained 37%, up from 33% in Q2. While some expressed concern regarding its realized EBITDA margins of -9%, J.P. Morgan analyst Andre Baggio notes that this is a result of MELI’s investment back into the business. “Most of the year-over-year pressure came from a 9pp increase in branding initiatives inside marketing expenditure, which is not used to boost short-term results but rather to help build a stronger brand for the future. On top of marketing, MELI is also investing more in fulfillment and credit,” he commented.The four-star analyst added, “We see MELI as very well positioned in the Latin American e-commerce and Fintech environments.” To this end, he kept his Overweight rating while reducing the price target from $750 to $700. Even at this lower target, Baggio thinks shares could surge 24% over the next twelve months. (To watch Baggio’s track record, click here)Similarly, other Wall Street analysts have been impressed by MELI. It earns a ‘Strong Buy’ consensus rating thanks to the 7 Buys and 1 Hold assigned in the last three months. In addition, the average price target of $692 implies 22% upside potential. (See Mercadolibre stock analysis on TipRanks) JD.com, Inc. (JD)The Chinese e-commerce company just posted an earnings beat of monster proportions. As a result, several members of the Street believe that now is the time to add JD (up 53% year-to-date) to your shopping cart.To kick off its third quarter earnings announcement, JD reported that revenue had grown at its fastest rate since Q2 2018, up 29% year-over-year. Not to mention even with the intense competition it faces in the space, annual active users increased by 13 million, with the new total landing at 334 million, and monthly active users were up 36%. Credit Suisse’s Tina Long argues that JD’s focus on gaining users from “lower-tier” cities could drive this figure to further accelerate. She cites the fact that “(1) 70% of new users are from lower-tier cities; (2) Order and GMV growth in lower-tier cities was the highest in the past six quarters; (3) It performed particularly strongly in large ticket sized items like electronics & home appliances. Avg. ticket size in lower-tier cities was Rmb200, higher than peers” to back up this conclusion. As a result, she maintained her bullish call and bumped up the price target from $41.40 to $43.50, suggesting 36% upside potential. (To watch Long’s track record, click here)Meanwhile, Alex Yao of J.P. Morgan reminds investors that the year-over-year decline in GPM and weak net margin guidance don’t impact the strong profit growth outlook. “We suggest investors focus on profit growth: 1) the GPM YoY decline in 3Q19 didn’t affect the solid OPM YoY improvement (2.2% from 0.6%); 2) higher revenue growth can also lead to solid profit growth even if JD sacrifices discretionary profit; and 3) acquiring more new buyers is positive for longer-term upside,” he explained. This prompted the four-star analyst to stay with the bulls, boosting the price target by $1 to $43. (To watch Yao’s track record, click here)When it comes to the rest of the Street, the consensus is split right down the middle. 3 Buys and 3 Holds add up to a ‘Moderate Buy’. Based on the $39 average price target, the potential twelve-month gain is 23%. (See JD.com stock analysis on TipRanks) Yandex N.V. (YNDX)Yandex is a Russian internet and technology company that operates a popular search engine. On the heels of its announcement that it will be updating its corporate governance, some analysts are standing firmly behind YNDX, stating that the company’s 48% year-to-date growth is just the beginning. In order to align its corporate governance with country interests, the Priority Share, which is currently held by Sberbank, will get more rights and will be held by the Public Interest Foundation (PIF). The PIF is set to be governed by a board of 11 directors, including members from the five top Russian universities, three non-governmental institutions and the company’s three representatives. These new rights include the option to prevent a single entity from accumulating economic or voting interests in Yandex of 10% or more, down from the current 25% level, to make binding nominations for two members of the board, to temporarily replace the General Director of the Russian subsidiary and appoint the Interim General Director in special cases and Class A shareholders will be assigned with additional rights, including a requirement to get an approval from them for certain material transactions. Founder and CEO Arkady Volozh will also see his stake be moved to a family trust, with shares no longer being converted into Class A upon his death.UBS analyst Ulyana Lenvalskaya sees the changes as a good thing for YNDX shares. “We think the proposed changes i) address the single-man risk/outline a clear succession plan and ii) create a new layer of Russian IP and data protection; as a result recently intensified regulatory pressure on Yandex is likely to diminish, we believe,” she noted. Bearing this in mind, she reiterated her Buy rating and $54.30 price target. This conveys her confidence in YNDX’s ability to rise 34% in the next twelve months. (To watch Lenvalskaya’s track record, click here) Looking at the consensus breakdown, 2 Buys published in the last three months compared to no Holds or Sells amount to a ‘Moderate Buy’. Its $52 average price target also implies 29% upside potential. (See Yandex stock analysis on TipRanks)
MercadoLibre's (MELI) third-quarter results benefit from solid total payment volume growth and strong momentum across all the regions. However, increasing expenses remain a woe.
MercadoLibre (MELI) delivered earnings and revenue surprises of -9800.00% and -0.31%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Investing.com - MercadoLibre (NASDAQ:MELI) reported third quarter earnings that missed analysts' expectations on Thursday and revenue that topped forecasts.
Net Revenues of $603.0 million, up 90.5% YoY on an FX neutral basis$7.6 billion Total Payment Volume, up 94.5% YoY on an FX neutral basis$3.6 billion Gross Merchandise Volume,.
We’re at the height of the earnings season, and the reports are coming in think and thin. Watch closely, because markets will react quickly should a company report unexpected results. And those surprises don’t have to hurt, either. So far, about half of the S&P 500 firms have reported quarterly results, and so far, those results are about 2% above the estimates. It’s good news, considering investors had expected a slow season.You can keep track of your favorite stocks using TipRanks Earnings Calendar. This handy tool offers a convenient calendar showing exact reporting dates for over 5,500 stocks. Click on the one you like, and you’ll get the nitty-gritty details – the consensus EPS forecast, the period covered, the year-ago results, plus a clear chart showing the last two years’ actual results.We’ve opened up the calendar and found a "strong buy" stock reporting earnings today after market close. MercadoLibre (MELI)So much attention goes to the American tech companies that it’s easy to overlook other markets. Which is too bad, because there are plenty of great stocks in the foreign markets. MercadoLibre, a leader in the Latin American e-commerce industry, is one of those. This Argentine company incorporated in the US and trades on the New York Stock Exchange. This year marks its twentieth year in business.It’s been good business, too. MercadoLibre boasts over 175 million users, and brings in over $1.2 billion in annual revenues. The company operates five divisions, including an e-commerce platform, an advertising platform, and financial services. MercadoLibre processes more than 140 million annual transactions and handles both the seller and customer ends of e-commerce.Putting pressure on the company are the results of Argentina’s recent election. The defeat of the business friendly Macri government raises fears that the new government may push anti-capitalist policies and restrict growth. Still, the forecast for Q3 is strong, and MercadoLibre has resources to weather a storm. Analysts expect to see over $604 million in quarterly revenue, or 70% year-over-year growth. Even better, the 2-cent EPS forecast will effectively cancel last Q3’s 23-cent loss.4-star analyst Andre Baggio, of JPMorgan, sees MELI as a growth prospect. He writes, “We are Overweight on MercadoLibre, as the company presents a unique combination of leadership on e-commerce coupled with accelerating growth on FinTech. Moreover, MELI showed impressive resilience to macroeconomics slowdown, being able to sustain growth even in unfavorable conditions.” Baggio’s $750 price target suggests an impressive 38% upside for the stock. (To watch Baggio's track record, click here)The Street largely seems to echo Baggio’s positive sentiment, considering TipRanks analytics showcase MELI as a Strong Buy. Out of 11 analysts polled by TipRanks in the last 3 months, 9 are bullish on MercadoLibre stock, while 2 remain sidelined. With a potential upside of about 31%, the stock’s consensus target price stands at $700. (See MercadoLibre stock analysis on TipRanks)To find good ideas for technology stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy tool, a newly launched feature that unites all of TipRanks’ equity insights.
Dorsal Capital Management was launched in 2009 by Ryan David Frick and Oliver Evans. Mr Frick is the fund’s Chief Investment Officer, while Mr. Evans retired in 2014. Ryan David Frick holds a MBA from Stanford University. Prior to launching Dorsal Capital Management, he gained rich experience working as an Analyst at Credit Suisse First […]
MercadoLibre, Inc. (MELI) (http://www.mercadolibre.com) intends to release financial results for its third fiscal quarter ended September 30th, 2019 on October 31th, 2019 after the close of the day's trading. The Company will host a conference call and audio webcast on October 31st, at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID 1183947) and requesting inclusion in the call for Mercado Libre.
PayPal's (PYPL) third-quarter results reflect an uptick in net new active accounts, strengthening customer engagement on its platform and portfolio strength.