|Bid||721.50 x 800|
|Ask||748.00 x 1100|
|Day's Range||721.49 - 747.42|
|52 Week Range||362.51 - 756.48|
|Beta (5Y Monthly)||1.60|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 29, 2020 - May 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Dec 27, 2017|
|1y Target Est||696.32|
Latin American e-commerce platform MercadoLibre said on Thursday it will invest $420 million this year in Mexico, its fastest-growing market, up 46% from 2019. The Argentina-based company will focus its spending in Mexico on logistics, financial services and expanding its brands and products, said MercadoLibre's Mexico chief executive, David Geisen. "Mexico keeps growing far above Latin America as a whole, and it's a key market for MercadoLibre this year," he told reporters at an e-commerce conference hosted by the company.
This article was originally published on ETFTrends.com. The fintech theme is soaring to start 2020 and one of its standouts is the ARK Fintech Innovation ETF (ARKF) , which is higher by nearly 13% year-to-date after vaulting to another record high last Friday. ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs .
(Bloomberg Opinion) -- Who is Cathie Wood?She’s already in the pantheon of top money handlers over any period in the past five years, and has been the most persuasive — and so far prescient — champion of Tesla Inc.Her actively managed Ark Innovation ETF is the best performer among 584 funds with at least $1 billion of assets in the global equity market, crushing the likes of BlackRock with a return of 165% (income plus appreciation) the past three years, and she beat 99% of them since Ark Investment Management LLC became a registered investment adviser in January 2014, according to data compiled by Bloomberg.For all of her success picking winners, the 64-year-old Wood has received relatively little notice during the past three years, aside from being an occasional outlier among investors on CNBC. You won’t find her at the Barron’s Roundtable, which “gathers some of Wall Street’s best minds.” She was included in the Bloomberg 50: The People Who Defined Global Business in 2018. Her focus on innovation, “centered around genome sequencing, robotics, artificial intelligence, energy storage and blockchain technology,” enabled Ark Innovation ETF to increase 127 times, to $2.4 billion from its $15 million grubstake in 2017. In the process, the Ark ETF rewarded its shareholders with more than three times the return of the S&P 500 Index and more than twice the Nasdaq’s bounty. Since its inception, Ark has earned almost 2.4 times more than the S&P 500 and 1.7 times the Nasdaq, according to data compiled by Bloomberg.At a point when money management mostly is a passive, index-driven business, Wood is a discerning stock picker with about $11 billion of assets. Her selection of health-care juggernauts Juno Therapeutics Inc., based in Seattle, and Invitae Corp., in San Francisco, returned 286% and 173%, respectively, in the past three years. Choosing Palo Alto-based Tesla and Buenos Aires-based MercadoLibre Inc. among consumer discretionary companies netted 185% and 269% in her fund, according to data compiled by Bloomberg.“We’re all about finding the next big thing,” said Wood during an initial interview with David Westin on Bloomberg Wall Street Week earlier this month. “Anyone hewing to the benchmarks, which are backwards looking, they’re not about the future. They are about what has worked. We’re all about what is going to work.”Since she graduated summa cum laude in finance and economics from the University of Southern California in 1981, Wood has been assistant economist at the Capital Group; chief economist, analyst, portfolio manager and director at Jennison Associates; co-founder of the hedge fund Tupelo Capital Management, and chief investment officer of global thematic strategies at AllianceBernstein, where she managed more than $5 billion. Her favorite innovator is Copernicus, the Renaissance man who located the sun rather than the Earth at the center of the universe.Soon after launching Ark in 2014, Wood made Tesla her fifth-largest holding. In 2018, she increased it to No. 1, or 10% of the fund, as most analysts soured on the maker of zero-emission, battery-electric vehicles.In 2016, when Tesla plummeted 11%, and 75% of the analyst recommendations opposed any purchases, Wood almost tripled her Tesla position to 5,072 shares. The following year, after Tesla appreciated 46%, and 68% of the analysts remained bearish, she enlarged her stake more than 13 times to 67,653 shares, according to data compiled by Bloomberg. When Tesla rallied 26% last year amid tepid recommendations from 70% of the analysts, she almost doubled her stake to 471,594 shares.Tesla continued climbing this year — 91%, the best performer in the Nasdaq 100 index and No. 1 among the 500 most highly capitalized U.S. companies. Wood was a consistent seller during the rally — reducing her holding to 292,000 shares — solely to keep her Tesla stake at the designated maximum 10% of her fund.“If we hadn’t sold, Tesla would probably be well north of 20% in the portfolio,” she said during a phone interview last week. “Last year, we were buying aggressively when analysts were saying Tesla was going to run out of cash and go bankrupt.” Tesla still is “incredibly undervalued,” she said.That’s an opinion considered absurd by most analysts, who insist nothing justifies Tesla’s valuation at almost $150 billion, or 58% more than the market capitalization of global sales leader Volkswagen AG.On the contrary, says Wood, Tesla’s share of EV sales increased a percentage point to 18% when the so-called Tesla killers — from BYD Co. Ltd and BAIC Motor Corp. in China to Nissan Motor Co. in Japan and Volkswagen, Bayerische Motoren Werke AG and Daimler AG in Germany and General Motors Co. and Ford Motor Co. in the U.S — started selling their own battery-electric vehicles. Wood believes the legacy automakers will lose money on their EVs, while Tesla becomes increasingly profitable and remains years ahead of its rivals in battery and chip technology.The company also has 14 billion miles of real-world driving data. Its closest competitor, Waymo, has data on 20 million miles.The investors who have been Tesla naysayers have gotten far more attention than Wood. News articles about Tesla short sellers, including David Einhorn’s Greenlight Capital LLC and Jim Chanos of Kynikos Associates Ltd., are far more numerous on the Bloomberg system. More than 100 stories showcased Einhorn’s disdain for Tesla, and more than 40 similarly featured Chanos, while there were around 20 for Wood during the same period.Investors were similarly dubious about Amazon.com, which appreciated 1,029% during its first five years after the initial public offering in 1997 and 228% during its second five-year period. Tesla has gained 1,018% during the five years after its 2010 IPO and appreciated 206% since 2015, according to data compiled by Bloomberg. “It’s the same idea that analysts hated Amazon during that entire period – not on the bubble but after the tech and telecom bust,” Wood said.In her latest assessment last month, she wrote: “Based on our updated expectations for electric vehicle (EV) cost declines and demand, as well as our estimates for the potential profitability of robotaxis, our 2024 expected value per share for TSLA is $7,000.”That’s a far cry from the $340 in August 2018, when Chief Executive Officer Elon Musk tweeted: “Am considering taking Tesla private at $420. Funding secured.”Musk subsequently received a letter from Wood urging him not to take the company private because she saw Tesla rallying to $4,000 in five years. Before the month ended, he said his plan to take Tesla private wasn’t “the better path.” Even Musk seemed impressed by Wood’s judgment. “The letter was to him and the board, and he did say that he and the board took the letter into consideration and it did influence them,” she said.Tesla said last week that it will sell about $2 billion of new shares and that Musk would purchase as much as $10 million of the offering.“I’m not going to tell you we were the reason,” Wood said. “We were a little peapod back then, and we’re still a little peapod in the scheme of the asset management world.” But, she said, “I think our research is the best in the world on Tesla.”So far at least, she’s been right on the money.\-- With assistance from Shin PeiTo contact the author of this story: Matthew A. Winkler at email@example.comTo contact the editor responsible for this story: Katy Roberts at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Matthew A. Winkler is Co-founder of Bloomberg News (1990) and Editor-in-Chief Emeritus; Bloomberg Opinion Columnist since 2015; Co-founder of Bloomberg Business Journalism Diversity Program in 2017. During his 25 years as Editor-in-Chief, Bloomberg News was a three-time finalist and winner of the Pulitzer Prize for Explanatory Reporting and received numerous George Polk, Gerald Loeb, Overseas Press Club and Society of Professional Journalists and Editors (Sabew) awards.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MercadoLibre's (MELI) fourth-quarter results benefit from solid total payment volume and gross merchandise volume growth. However, increasing expenses remain a woe.
MercadoLibre stock fell 4.4% in pre-market trading as the eBay of Latin America reported a larger-than-expected loss in the fourth quarter due to investment in marketing.
MercadoLibre (MELI) delivered earnings and revenue surprises of -60.87% and 0.94%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
E-commerce company MercadoLibre reported fourth-quarter results that beat Wall Street estimates on revenue but fell short on earnings. The earnings report came after the market close.
Net Revenues of $674.3 million, up 84.4% YoY on an FX neutral basis $8.7 billion Total Payment Volume, up 98.5% YoY on an FX neutral basis $3.9 billion Gross Merchandise.
MercadoLibre on Monday reported mixed fourth-quarter results after earnings missed estimates as a surge in costs offset revenue growth that topped consensus estimates. MercadoLibre had reported EPS of $-2.96 on revenue of $603.03M in the previous quarter. The miss on the bottom line was partly driven by a fall in a margin to 45.7% from 47.8% in the fourth quarter total operating costs surged 83% for the quarter year-on-year.
For the past decade, tech stocks have been the path to riches and I expect the strength in the sector to continue in 2020, too. One such winner has been Shopify (NYSE:SHOP). If you had invested $1,000 in the shares at the start of July 2015, at $28 on the ground floor when the stock had its IPO, your initial investment would have gone over $16,000. Year to date, Shopify stock is already up about 19%.Source: Burdun Iliya / Shutterstock.com In hindsight, we can say that the market has underpriced the growth potential of the company. The group is expected to report Q4 earnings and full-year results for 2019 on Feb. 12. Therefore, now may be a good time to ask whether it is too late to take advantage of the growth story of SHOP stock. Let's take a closer look. What to Expect From Shopify's Next EarningsWhen the Canada-based ecommerce service provider reported Q3 earnings in October 2019, markets were not fully impressed. Although revenue rose above expectations, the group reported a surprise Q3 loss.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRevenue was $390.6 million, a 45% increase year over year. Operating losses for the third quarter of 2019 were $35.7 million, or 9% of revenue.The company sells out-of-the-box ecommerce solutions. And revenue growth comes from two main segments: Subscription Solutions and Merchant Solutions. When it comes to these segments the following occurred in the Q3 results: * Subscription Solutions revenue grew 37% to $165.6 million. This increase was driven primarily by growth in Monthly Recurring Revenue ("MRR"), as the number of merchants joining the Shopify platform increased. * Merchant Solutions revenue grew 50% to $225.0 million, thanks to the growth in Gross Merchandise Volume ("GMV").As of the end of October, more than a million businesses worldwide have set up an online store with Shopify. In recent quarters, management has also been looking at expanding overseas, especially in non-English-speaking countries. The group is hopeful that it will make money from software subscriptions, payment processing and other merchant services in international markets, too. * 7 Heavily Shorted Stocks That Could Pop on a Short Squeeze Therefore in Q4, analysts are likely to pay attention to whether the company's overseas customer base continued growing.Shopify is a momentum stock. Following the Q3 report, the shares initially declined for about week to a recent low of $282.08. And then the stock took off to hit an all-time high of $482.87 on Jan. 31. Therefore, I'd not be surprised to see if we witness volatility with an initial downward bias following the Q4 report. Long-Term Tailwinds Behind SHOP StockAccording to a recent research piece by investment bank R.W. Baird, the group will soon surpass eBay (NASDAQ:EBAY) to become the second-largest U.S. e-commerce platform behind Amazon (NASDAQ:AMZN) in terms of sales volume generated by merchants using Shopify's services.Many on Wall Street credit the company's success with a wide range of tools that enable store owners to easily manage their businesses. Today, many companies are choosing to bypass brick-and-mortar stores across the board and increasingly selling products directly to the customer online.In the U.S., ecommerce makes up about 12% of total retail sales. U.S. retail e-commerce sales for the third quarter of 2019 totaled $145.7 billion, marking an increase of 4.4% from the second quarter of 2019. According to Shopify, "[i]n 2019, ecommerce share of total global retail sales was 14.1% and analysts only expect it to increase 2% a year through 2023 … Much of ecommerce growth is attributable to Amazon, which is growing at above-market rates and was expected to account for 37.7% of online U.S. sales in 2019."Therefore, in the quarters ahead, we can expect Shopify management to continue the efforts to capture a greater percentage of the total ecommerce pie not only in the U.S., but also globally.The company's market cap is about $55 billion and I'd not bet against it passing over $100 before too long. In comparison, eBay's and Amazon's market caps are around $29 billion and $1 trillion, respectively.But I'm no advocate of buying stocks at any price. Therefore, long-term investors should do due diligence on SHOP stock before taking the plunge. What Could Derail Shopify Stock Short-Term?Many investors are concerned that the stocks's valuations might have gone above and beyond what's deemed as reasonable, even for growth stocks in the tech sector.One of the metrics I pay attention to is the stocks's price-to-sales (P/S) ratio, which stands at about 37x. To put the metric into perspective, the S&P 500's average price-sales ratio is 2.3x.Another way to look at this number is to compare the company's current P/S ratio with its P/S ratios over time. Since going public, SHOP stock's lowest and highest P/S level have been 6.86x and 37x, respectively. That essentially means that the owners of Shopify stock are paying a lot more for the stock now than they were when the P/S ratio was 6.8x. So it is at the highest level it has ever seen.Another way to analyze the P/S ratio is to compare it with the ratios of companies in similar sectors. Alibaba's (NYSE:BABA) P/S ratio stands at 8.9x. MercadoLibre (NASDAQ:MELI) stock's P/S is 15.6x and the P/S ratio of Amazon is 3.6x.Although the P/S ratio of the stock is very high, investors should also remember that it is only one of many valuation metrics. Moreover, it does not take into account the profitability or costs of Shopify.Experienced investors know that it is not quite possible for a stock to defy the laws of gravity forever. However, timing the exact tops and bottoms is also not easy at all.If you are an investor who also pays attention to technical charts, you may also be interested to know that many short-term indicators would urge investors and traders to exercise caution. I'd not be surprised to see Shopify stock fall toward $400 level in the coming weeks. So Should Long-Term Investors Buy the Stock Now?Over the past decade, Shopify has become a giant in a very promising sector. And I expect the Ontario-based success story to continue to reward investors going forward. Its moat in the small- and medium-sized enterprise (SME) e-commerce space will increase not only in North America, but globally, too.Yet, Shopify stock is fundamentally expensive and its short-term technical charts point to an extremely overbought picture. So it'll likely take a breather and slip possibly double digits in the coming months. And earnings seasons, especially in a month when broader markets are themselves volatile, can be the perfect time for such a drop.If your risk/return profile enables you to weather any potential volatility in SHOP stock in the coming weeks, you may want to hold on to your position.Alternatively you may want to hedge your position with a covered call, if you are experienced with hedging via options. For example, an ATM or slightly ITM covered call that expires on Feb. 21 would give you some downside protection. It would also enable you to participate in a potential up move. And in the meantime, you'd have enough time to analyze the earnings report in detail.Any new investment into SHOP stock should possibly come with the caveat that much of the potential good news for now has already been priced into the share price.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post Can Shopify Stock Keep Up the Pace in February With Q4 Earnings? appeared first on InvestorPlace.
MercadoLibre's (MELI) fourth-quarter results are likely to have benefited from its fintech and logistics offerings. However, rising expenses remained a concern.
MercadoLibre, Inc. (MELI) (http://www.mercadolibre.com) intends to release financial results for its fourth fiscal quarter ended December 31st, 2019 on February 10th, 2020 after the close of the day's trading. The Company will host a conference call and audio webcast on February 10th, at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID 5176529) and requesting inclusion in the call for MercadoLibre.
PayPal's (PYPL) fourth-quarter results benefit from investment contributions, increasing net new active accounts, and solid contributions from Venmo and One Touch.
Global technology platform and digital payments leader PayPal Holdings, Inc. (NASDAQ: PYPL) today announced fourth quarter and full year results for the period ended December 31, 2019.
Wracked by political volatility, Argentine stocks and the Global X MSCI Argentina ETF (ARGT) tumbled last year. Stocks in South America's second-largest economy rallied in the fourth quarter, but couldn't recoup all of the 2019 losses and the market is again being tested to start 2020, prompting market observers to speculate on what to expect from Argentine markets under the newly elected Alberto Fernández. There are concerns that Fernandez is cut of the same cloth as former President Cristina Fernández de Kirchner (CFK), but indications are to the contrary.
Thanks to the positive sentiment surrounding the U.S. and China signing a "phase one" trade agreement, several tech stocks have skyrocketed recently. That's not surprising considering that China is both a massive and still growing market for technological innovations. Nevertheless, investors may want to limit their exposure to the domestic space in favor of international names.For one thing, the U.S. equity sector has broadly and consistently outperformed its global counterparts over the last several years. Of course, this is not a guarantee that foreign companies will start beating out American competitors. However, markets generally move cyclically. Purely from a probability standpoint, it might make sense to consider international tech stocks.Furthermore, U.S. tech stocks exposed to geopolitical risks in a magnitude that you don't usually find with international counterparts. Let's face it: We're the world's sole superpower. And like it or not, it's our duty to support the cause of freedom wherever possible. But because of this moral mandate, we are necessarily involved in controversies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLong story short, our companies can be on the receiving end of unfavorable treatment, like in the U.S.-China trade war. However, some international tech stocks might avoid such geopolitically motivated troubles.Finally, international tech stocks have home field advantage. Although U.S. blue chips always have their eyes set on global expansion, international organizations best understand the nuances of their market or region. * 7 Healthcare Stocks With 100% Street Support So, if you're ready to step outside your comfort zone, here are seven international tech stocks to put on your radar. Mercadolibre (MELI)Source: Shutterstock E-commerce firm Mercadolibre (NASDAQ:MELI) is what I would call a time-capsule investment among international tech stocks to buy. Based in Argentina, Mercadolibre is actually the largest e-commerce platform in Latin America. Moreover, it leads in market share in the countries where it has a presence. In other words, MELI stock is beating out Amazon (NASDAQ:AMZN) in several emerging market nations.Because of its similarity to our homegrown e-commerce stalwart, most folks refer to Mercadolibre as the Amazon of Latin America. Personally, I think it's a fair comparison. However, MELI stock is a name you want to watch closely because the underlying organization is pushing beyond that title. The company sells merchandise, offers a merchant network platform, and has a payment processing service.Best of all, e-commerce adoption in Latin America is growing rapidly. Therefore, MELI stock is a long-term investment where patience can net huge returns. Embraer (ERJ)Source: Shutterstock When people think about aviation tech stocks, typically Boeing (NYSE:BA) and Airbus (OTCMKTS:EADSY) come quickly to mind. However, Brazilian firm Embraer (NYSE:ERJ) should also be on your list of publicly traded firms to watch closely. Perhaps most famous for its line of gorgeous executive airplanes, ERJ stock also has exposure to the lucrative defense market.But what makes Embraer stand out among international tech stocks is its innovative, envelope-pushing projects. Currently, the company has a partnership with Uber Technologies (NYSE:UBER) to develop aircraft for the transportation needs of tomorrow. While Uber has essentially catalyzed the ride-sharing phenomenon, it's not done: it wants to dominate the skies as well. That's a compelling reason to buy ERJ stock. * 7 Earnings Reports to Watch Next Week Want another reason? Historically, ERJ stock is undervalued. Since July of 2000, shares are actually down a bit. Basically, ERJ hasn't moved for 20 years. But a compelling partnership with Uber might change that. ASML (ASMLF)Source: Shutterstock I'm not really sure if you'd call ASML (OTCMKTS:ASMLF) a household name. But within the arena of international tech stocks, ASML is a true powerhouse. Headquartered in Veldhoven, Netherlands, the semiconductor firm has multiple corporate clients throughout the world. Chances are, if you used any modern digital device, you've used ASML products. Due to the organization's importance to the sector, having some exposure to ASMLF stock is likely a wise bet.A key driver for ASML is its innovations in lithography. This term describes "printing" unique patterns on silicon wafers via an advanced projection system. Furthermore, ASML is the world's sole tech firm that utilizes extreme ultraviolet light. Essentially, the company's next-generation technology allows it to imbue semiconductors with ever-increasing data capacities. And with multiple tech industries ranging from PCs to mobile devices clamoring for higher capacities, ASML stock is indefinitely relevant. Adyen (ADYEY)Source: Shutterstock Launched in the over-the-counter exchange early October of last year, Adyen (OTCMKTS:ADYEY) is by default one of the riskiest international tech stocks. Therefore, I'll warn you upfront and early that ADYEY stock is not for the faint of heart. Indeed, the disappointing environment surrounding much-hyped international public offerings should give you some pause.At the same time, ADYEY stock is undeniably compelling. Adyen started life as an idea to bring payments transactions for businesses under one cohesive umbrella. Given that Adyen is headquartered in the heart of western Europe, I can see why the founders got this concept. * 10 Recession-Resistant Services Stocks to Buy Later, the company evolved into an e-commerce, business solutions and data analytics platform. Basically, it's the European version of Square (NYSE:SQ). Now, I like Square's growth prospects in the U.S. and certain international markets. But Adyen may offer an understanding of the European business environment that gives it a distinct advantage. Therefore, a speculative but measured shot on ADYEY stock isn't a bad idea. Momo (MOMO)Source: Shutterstock Almost always, one of the justifications for buying China-based publicly traded companies is the underlying country's population size. At roughly 1.4 billion, China technically has the world's biggest addressable market for everything. But in my opinion, only few companies like Momo (NASDAQ:MOMO) can use this population statistic to its benefit.Momo is a video and social networking app. That said, investors know MOMO stock as the Tinder of China. Most people use Tinder as a dating service, and so it is with Momo despite it being a more broad-usage social app.Now, you understand why I think population size matters for MOMO stock. Demographically, the underlying company has hit a home run: approximately 80% of the app's users are between 19 to 32 years old. Many of these individuals will be interested in using its services to socialize and set up dates. Sony (SNE)Source: Shutterstock In many ways, Sony (NYSE:SNE) was the dominant consumer electronics player before Apple (NASDAQ:AAPL) ruined everything. First, Apple's iPod obliterated Sony's iconic Walkman, which by then turned into a physically hulking device. Later, the iPhone and iPad separated the two companies by several lightyears, leaving SNE stock as a sad shell of its former self.However, one look at the technical charts will confirm that Sony has found its way. In my view, one of the most compelling drivers for SNE stock is the Japanese tech firm's sensor technology. Featured in multiple smartphone brands, including the current-generation iPhone, Sony has impressed millions of mobile users across the globe. And it's set to do it again with even bigger, more powerful sensors for Apple's future iPhone 12. * 10 Stocks to Buy as the 2020 Presidential Election Approaches Lastly, you should consider SNE stock among your international tech stocks to buy for Sony's unfailing PlayStation business unit. Yes, over the last several years, the Japanese icon attracted much scorn. However, its PlayStation unit is a different animal. And with the PS5 console coming out later this year, SNE is a strong opportunity. Jumia Technologies (JMIA)Source: Shutterstock At the top of this list of international tech stocks to buy, I mentioned Mercadolibre, the Amazon of Latin America. I'm going to take it full circle with Jumia Technologies (NYSE:JMIA), which many people regard as the Amazon of Africa.Similar to Mercadolibre, JMIA stock has an extraordinarily fascinating broad-view narrative. Indeed, the African continent may represent the most compelling narrative. According to data compiled by Quartz Africa, the continent's "consumer e-commerce market, valued at $5.7 billion in 2017, is less than 0.5% of the continent's GDP, far below the global average of 4%."If you want to talk about an addressable market, Jumia Technologies has ridiculous upside potential. But will this translate to strong returns for JMIA stock?It might due to many efforts to bring African populations into the financial system. If and when they become banked, their access to e-commerce platforms will logically increase.However, the African market is largely a frontier one. Thus, a short-seller made sharp, though unverified accusations of fraud against JMIA stock. One thing is for sure: If you're going to gamble here, do so carefully.As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy as the 2020 Presidential Election Approaches * 5 Dividend Stocks With Low Payout Ratios and High Yields * 4 Post-Holiday Retail Stocks Still Worth a Look The post 7 Exciting Tech Stocks With International Flair appeared first on InvestorPlace.
PayPal stock has rebounded ahead of earnings due out late Jan. 29. Analysts expect updated 2020 guidance to include the $4 billion acquisition of consumer app Honey and Venmo services.
Stock Of The Day: MercadoLibre is near a buy point after big gains in 2019. The Latin America e-commerce and payments giant has booming revenue growth — and losses.
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 […]