|Bid||109.64 x 1000|
|Ask||109.98 x 1300|
|Day's Range||109.46 - 111.24|
|52 Week Range||74.66 - 114.66|
|Beta (3Y Monthly)||0.93|
|PE Ratio (TTM)||59.41|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Together with PayPal, Visa and Mastercard look virtually unassailable in the digital-payments market. The stocks, while pricey by traditional price/earnings metrics, show no signs of slowing down.
Google Reacts to Amazon as Facebook Is Called to Tame CEO(Continued from Prior Part)Facebook registers Swiss fintech firmFacebook (FB) appears to be preparing for a fierce contest with PayPal (PYPL) and others for revenue in the technology-based
Paypal (PYPL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
It seems like nothing can stop PayPal (NASDAQ:PYPL). After a brief slowdown during the bear market in late 2018, PayPal stock had returned to its late-summer highs by January.Source: Shutterstock The move higher continued, and now it trades at record highs. Given the growth in the payments industry, PYPL will continue its rise long term. However, the question is not whether to buy PYPL stock, but if investors should choose it over its closest peers.PayPal stock continues to register impressive growth, even as it seeks to address the competitive threat posed by Square (NYSE:SQ). Fueling this is a rising cashless society and a move toward more ecommerce. This bolsters not only PayPal stock and that of Square, but also payment processors such as Visa (NYSE:V) and MasterCard (NYSE:MA).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend This increase continues at a steady but significant pace. According to eMarketer, retail ecommerce sales will rise from $3.453 trillion this year to $4.878 trillion by 2021.PayPal may have also become a force in the banking business itself. Its digital wallet, Venmo, has risen to over 40 million accounts as of the first quarter. Venmo also registered a 73% increase on payments on its platform. This compares well to Bank of America (NYSE:BAC) with 37 million digital accounts and Wells Fargo (NYSE:WFC) who with 29.8 million digital users. PYPL lags only JPMorgan Chase (NYSE:JPM), which claims 51 million active accounts. A Closer Look at PayPal StockGiven this increase, I see ample room for growth for all major players involved. The predicted profit increases in PayPal stock represents the growth well. Analysts expect earnings increases to come in at 23.1% this year and 17.8% next year.This has also brought somewhat higher price-to-earnings (PE) ratios across the industry. PayPal's forward PE now stands at 32.1. While not cheap, that appears inexpensive compared to SQ stock and its 59.3 forward PE ratio. Moreover, the multiples of Visa and Mastercard are somewhat lower, but not by much.But here's the thing.In this sector, multiples tend to rise with rates of profit growth. Square supports a significantly higher PE ratio. However, Wall Street believe SQ's profits will rise by 59.6% this year and 49.3% the next.In 2020, Square's profits will grow at about 2.5 times PayPal's earnings this year. Next year, Square will roughly triple PayPal's growth rate. Given this differential, I see a case for buying SQ when its forward multiple comes in a less than double PayPal's PE ratio.Conversely, investors can pay about 26.4 times forward earnings for Visa. Following what looks like an industry trend, that will buy investors lower but still impressive growth rates. Analysts expect Visa will see a 16.5% earnings increase this year and a 15.6% rate in 2020.Moreover, PYPL has risen more than 46% from its December low. This comes in substantially higher than the 33%-plus growth in SQ over the same period. Given this rapid rise, I cannot rule out a short-term correction. What should investors do?PayPal stock will remain a growth equity for years to come, but it may not outperform a key peer. PYPL trades near record highs. Its massive profit increase justifies its PE ratio in the low 30s. However, one cannot ignore Square stock, which offers almost triple the growth at less than double the valuation.Again, I do not think this negates the bull thesis in PayPal stock. I also believe payment stocks will generally continue to rise long-term. In my view, it comes down to risk tolerance. Investors more comfortable with lower multiples should consider PayPal or maybe Visa. However, for those who will willingly pay a higher PE for more elevated growth levels, Square stock might make a better choice.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post PayPal Stock Will Move Higher, but There Are Way Better Choices appeared first on InvestorPlace.
Square (NYSE:SQ) has recently given back a lot of its gains from last year. After briefly topping $100 per square, SQ stock has sharply reversed. SQ stock now trades for just $65, and has failed to recover, even as the stock market has roared back from its December lows.Source: Chris Harrison via Flickr (Modified)It's not hard to see why SQ stock has underwhelmed so far in 2019. The valuation of Square stock reached outrageous levels when the shares hit $100. At that point, the market was pricing in both huge growth by SQ and a sharp upturn in its profitability. Unfortunately, Square's first-quarter results, unveiled on May 1, did little to support either tenet of the bulls' thesis. * 5 Safe Stocks to Buy This Summer Earnings Were Fine But Not EnoughSquare's Q1 results were a mixed bag. If expectations for the company had been lower, investors probably would have been fine with the results. But given the high price of SQ stock, blowout results were needed to sustain its upward trend.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSQ reported non-GAAP earnings per share of 11 cents, which topped analysts' consensus outlook of 8 cents. On a GAAP basis, the company continues to lose money. On the revenue side, it topped consensus expectations, but not by much. Its $489 million top line only modestly exceeded analysts' consensus outlook of $480 million.Some bulls pointed to the company's escalating year=over-year revenue growth rate as a positive point. But, excluding the impact of Square's recent acquisitions, its growth rate has been declining in recent quarters. Furthermore, analysts expect SQ's growth to fall off sharply, from something in the high fifties now to closer to 40% next year. Obviously, 40% annual revenue growth is still great, but when the company is still only, at most, marginally profitable, the owners of Square stock will want its CEO, Jack Dorsey, to produce better results. SQ Stock Still Has a High ValuationEven after dropping 35% from its high of last year, SQ stock is really expensive compared with its peers. Square stock is trading around 7.5 times its 2018 sales and nearly 60 times analysts' average 2019 earnings estimate.Those numbers are much higher than the valuations of other payment tech companies. Maybe the current valuation of Square stock would make sense if SQ had recently carried out its IPO and was still early in its maturation process. But Square has been around long enough to start backing up its valuation. PayPal (NASDAQ:PYPL) stock is trading closer to six times its sales and 30 times its earnings.Both WorldPay (NYSE:WP) and Global Payments (NYSE:GPN) look even cheaper than PayPal on the basis of these metrics, to say nothing of Square. The owners of Square stock have to ask themselves what makes SQ stand out from its competitors. Square dominates its niche of the smallest of businesses, but has struggled to gain traction with larger companies. As businesses' volumes rise, Square's fees tend to become less competitive. Jack Dorsey has to find a way to change that situationBut SQ has some other irons in the fire. Its Cash App, for example, has had a strong run, though it appears that PayPal's Venmo is catching up. Some of Cash App's features, such as Bitcoin trading, could cause some users' interest in SQ to rise, but that probably won't be enough to drive SQ stock back to its old highs. Jack Dorsey needs something bigger, which brings us to… Square's Quest for a Banking LicenseThe one thing that could really turn things around for SQ stock in a hurry would be a banking license. Square originally filed paperwork for a license in September 2017. It intended to become a Utah-based bank that would focus on small business.However, after regulators expressed concerns about its application, SQ withdrew it. However, SQ refiled its application late last year. Why is Square so intent on obtaining a banking license? In theory, an FDIC-insured Square Bank would give SQ a large amount of disruptive power. Right now, SQ has to operate using its customers' banks, which adds fees and friction. Square Bank would allow its small business customers to open their own accounts directly with Square, cutting out the middleman.Obtaining a banking license would help Square make more loans to its small-business customers. SQ arguably has better data than traditional banks, as it can see a huge portion of its customers' transaction data in real time. Additionally, SQ could obtain payments on its loans directly from the recipients' transactions, rather than waiting for the businesses to choose to make payments.In theory, SQ stock should surge after it receives a banking license. But the license may never be granted. For one, the FDIC tends to be fairly cautious about granting banking licenses to more aggressive firms. I've been skeptical about whether Square's small-business lending will earn high enough returns to offset the large credit risk of lending to tiny businesses. Its business model looks good during boom economic times but what happens during a recession? Perhaps regulators are wondering the same thing. Jack Dorsey will have to convince regulators that SQ's business model will remain sound during economic downturns. The Verdict on SQ StockIf Square gets its banking license soon, all bets are off. But for now, SQ stock is likely to continue to struggle compared with other tech stocks.Its last earnings report was underwhelming. With its valuation still far above that of industry rivals, Jack Dorsey needs to put up dazzling results to get its stock price moving again. Another earnings report that just barely tops expectations, let alone a miss, could send SQ stock lower in a hurry.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Square Stock Is No Bargain Yet appeared first on InvestorPlace.
Facebook needs to work on its timing. and payments service before the scandal has been put to rest. Spending on Mastercard and Visa credit, debit, and prepaid cards in the US alone was $6tn last year, according to The Nilson Report, an industry newsletter.
If any company can take a cryptocurrency mainstream, it is Facebook. Facebook’s answer, according to several people familiar with its secretive “Libra” project, will be to try to launch a “stablecoin”, a digital currency pegged to the dollar. If successful, the Facebook coin could not only allow payments and transfers within the Facebook empire, but could also be stored on digital wallets and spent in shops, or exchanged into traditional currencies.
Facebook’s vaulting ambition to create a new global digital currency has led it to hold talks with some of America’s largest trading houses and cryptocurrency exchanges, including one founded by Mark Zuckerberg’s sworn enemies — the Winklevoss twins. A secretive unit of the social media company has been working for more than a year to create a currency that its 2bn users can use to send money to each other, and to buy things not just on Facebook, Instagram and WhatsApp but across the internet and in the real world.
William O'Neil protege David Ryan joined the podcast this week to talk about how he finds top stocks to buy, and it comes down to "buying what you know."
In a market that's near its all-time highs, there are a number of stocks like Adobe (NASDAQ:ADBE). There's little doubt that Adobe has an attractive business with excellent growth prospects. The argument comes down to what ADBE stock price should be.Source: Shutterstock ADBE stock isn't cheap. The company's guidance, which it updated after its strong Q1 earnings report, indicates that the price-earnings ratio of Adobe stock, based on expected fiscal 2019 adjusted earnings per share, is 35. Among 56 U.S.-listed stocks with a market cap over $125 billion, only three - PayPal (NASDAQ:PYPL), Netflix (NASDAQ:NFLX), and Amazon.com (NASDAQ:AMZN) - have a forward P/E ratio that's higher than ADBE's 28.4. * 6 Stocks to Buy for This Decade's Massive Megatrend But Adobe almost certainly belongs in that group. And in the context of its current growth and its opportunities, ADBE stock price actually doesn't seem excessive at this point. I've been a fan of Adobe stock for a long time, and ADBE stock has continued to rise for years. Right now, it doesn't look like that will change.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why ADBE Stock Price Is Cheap EnoughOne simple comparison highlights why Adobe stock is, at worst, cheap enough to consider. Again, ADBE trades at 35 times this year's expected EPS, and 28 times analysts' average 2020 EPS estimate. For a large-cap software play, that's simply not that expensive.Indeed, look at Microsoft (NASDAQ:MSFT), an Adobe cloud partner and a long-rumored potential buyer of the company. Microsoft - even excluding its almost $8 per share in net cash - trades at 26 times analysts' average fiscal 2019 EPS estimate and over 23 times their FY20 consensus EPS estimate.Should Adobe stock be trading at a higher valuation than Microsoft stock? Absolutely. ADBE's growth going forward should be far more impressive. Adobe's adjusted earnings per share, according to analysts' average projections, should rise 23% next year, more than double Microsoft's anticipated increase. Both companies have benefited from the shift to cloud-based services, but Adobe has much lower exposure to flattish consumer PC revenue.This data doesn't mean ADBE stock price is cheap. Indeed, I was skeptical toward Microsoft stock for some time before turning bullish on it last year. The recent run of Microsoft stock to a near-trillion-dollar market cap makes MSFT once again somewhat dicey from a valuation standpoint.But the valuation gap between MSFT and ADBE stock is, at worst, reasonable. If Adobe 's EPS continues to rise at a 20%+ annual rate, that gap will disappear in just a few years. Put another way, 35 times this year's earnings for ADBE stock might sound expensive. But Adobe's EPS looks poised to reach $12 by 2021. At current levels, ADBE stock is trading around 23 times $12. A multiple of 23 times for ADBE stock sounds close to cheap. Growth Drivers for Adobe StockThe ADBE stock price is, at worst, in a range that will enable Adobe to grow into its valuation and then rise further. ADBE is not quite priced for perfection, as some may believe.If ADBE's growth continues, Adobe stock should rise and outpace the market. And there are plenty of reasons to expect that ADBE's growth will continue. Creative Cloud demand is only going to grow as creative jobs multiply amid the growth of streaming media and small businesses, i.e the customers of Shopify (NYSE:SHOP) and Etsy (NASDAQ:ETSY).ADBE's Experience Cloud - boosted by the acquisitions of Marketo and Magento last year - will continue to expand its addressable market and benefit from the increasing importance of data analytics and the increasing breadth of marketing channels, including digital marketing.Adobe should benefit from many of the trends that have driven tech stocks, in particular, to their current valuations. The shift to cloud? Check. Digital advertising growth? Check. Big data? Check . If an investor is going to pay up for exposure to those trends, ADBE stock is a logical choice for him or her. Watch the MarketThe biggest risk to ADBE, in fact, seems to be external. At some point, investors may bring stock valuations down across the board. (But I'd note that risk has been seemingly ever-present for the past decade,.) The ADBE stock price dropped by more than 25% in the market-wide swoon late last year, so it's not immune to broad market weakness.But any investor owning pretty much any tech stock at the moment is taking some sort of valuation risk. And there doesn't appear to be many tech stocks as appealing as ADBE. Adobe stock isn't cheap, but it shouldn't be, at least not yet. And if it keeps doing what it has been doing, $267 will seem cheap in retrospect.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Adobe Stock Should Keep Moving Higher appeared first on InvestorPlace.
Now it's time to check out three tech stocks that came through our screen today that growth investors might want to consider buying right now.
Another jittery week seems to be upon the markets as news headlines highlight that the U.S.-China trade negotiations may be at an impasse. Trade is not a zero-sum game and tariff tiffs will likely affect many companies, countries, and consumers at different levels. Understandably many investors are beginning to get nervous as to where stocks in their portfolios may be headed next. Therefore, today I'd like to discuss the short and long-term outlook for Square (NYSE:SQ), the mobile-payments company.Source: Via SquareFintech is an evolving and growing industry. And the global economy is gradually shifting from cash to cash-less payments. With its strong small business focus and proactive management, Square stock is likely to weather the long-term ebbs and flows of the industry. However, there might be further weakness in the SQ stock price -- after losing 9.2% in the past month -- in the near-term that potential investors should anticipate. Square's Growing EcosystemAlthough it started as a payments company, Square has in recent quarters introduced a range of software, hardware and apps to service small businesses, individual clients and act more like a traditional bank. Its most recent earnings report released on May 1 and accompanying shareholder letter provide a good overview of the growth in service offerings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSquare's ecosystem combines software with hardware to especially enable sellers to turn their mobile devices into point-of-sale (POS) solutions. In other words, through various growth initiatives, SQ management is now aiming to make the company a major player in the fintech apps sphere as well as a small business platform that offers a wide range of services.For example, SQ's peer-to-peer mobile payments Cash App has more than 15 million monthly active customers. Square charges 2.75% per transaction to businesses that accept Cash App payments. It also makes money through individuals using the app. * 6 Chinese Stocks That Could Pop On a Trade Deal Management would like to see the Cash App become more like a traditional bank whose core customers are small businesses as well as individuals. As the younger generations especially are making a drastic shift to using electronic payments, Square would like to capture that growth.In October 2018, the group announced Square Installments, which lets customers pay in monthly installments. Previously, Square had also launched Square Capital, which provides short-term loans to small businesses that use its service to process credit card payments.Clearly, Square is expanding its services and merchant ecosystem across different channels and many growth investors are bullish long term on Square stock. However, they would need to pay special attention to how each business that Square is now chasing contributes to the bottom line.While Square currently enjoys a head start in serving small businesses, Wall Street has some questions as to whether the group can maintain a sustained growth quarter after quarter. What Could Derail Square Stock Fundamentally?The global payments industry is a $100 trillion plus market. And the fintech apps revolution is fast changing the way traditional banks, credit card issuers and mobile-payments companies work with businesses as well as retail customers.Such a big industry inevitably attracts both domestic and global competition. Square faces competition from many well-capitalized companies, including the global online payments group PayPal Holdings (NASDAQ:PYPL), transaction processing leader Visa (NYSE:V) and Fiserv (NASDAQ:FISV), which is shaping up to become a global payments giant.To be sure, not every area Square expands into will necessarily translate into easy money. Unless Square increases its revenue base, Wall Street may not be too forgiving about the SQ stock price. Therefore, from a valuation point of view, I'd urge long-term investors to exercise caution with the current price levels.For example, many analysts are expressing doubts over Square's expansion into the loan business and questioning whether the company is taking on too much risk.Another are of potential concern would be declining growth in transaction fees, which still provide the majority of revenues. Square's shifts toward subscription and services revenues may not be enough to make up for the decline in transaction fees.The May 1 earnings report showed that the group's gross payment volume (GPV) grew to $22.6 billion, at a relatively modest rate 27%. Yet Wall Street was concerned about this growth rate.In other words, shareholders would need to decide whether the company has potentially diversified way too much and away from its core business of payment processing. Therefore, they'd need to regularly re-assess their views based on company and sector developments as well as earnings statements. Where is Square Stock Price Now?Let us briefly remember how SQ stock price has acted over the years.Following its initial public offering (IPO) in late 2015, the price of SQ stock surged from $9 to an all-time high of $101.15 in October 2018 as the company became a darling among long-term investors.With such high return on initial investments, many investors look at the future through rose-colored glasses as they tend to assume growth rates will accelerate for many years. That's how recent IPOs usually become momentum stocks. However, if growth decelerates, then the stock price usually suffers. In other words, a momentum stock like Square trades in line with revenue growth trends and expectations.Despite the euphoria in the first three years, SQ stock price has been exhibiting price weakness since all-time high on Oct. 1, 2018. This year, although the stock is so far up 16%, April and May have not been good months for shareholders. The weak Q2 guidance issued during the Q1 conference call triggered the recent downtrend.If you are looking for an entry signal to buy SQ shares, from a technical chart perspective, I am not expecting the stock to make a significant leg up any time soon. Square stock will need to stabilize and build a base again before a long-term sustained leg up can occur.And, I do not expect the SQ stock price to reach the $100 level any time soon; the market may be starting to price the stock with a more realistic and fair view.The daily volatility of Square stock is high, giving it a broad trading range, so short-term traders should proceed with caution. Expect nearer-term trading in SQ to be choppy at best. So Should You Buy SQ Stock in May?I believe the volatility and selling in the markets will continue in May as well as in June. Like many momentum plays, SQ stock is likely to be a battleground between two camps: investors and traders.Depending on news headlines, Square stock may trade sideways for several days, only to continue to pullback toward the low-$60's level, where it is likely to find initial support.If the support around $60 level does not hold, then it may fall further to $50 level, where I'd expect SQ stock to start to stabilize and then trade sideways until the next earnings release, expected in late July. * 7 High-Yield REITs to Buy (Even When the Market Tanks) Indeed, Square stock may become one of the first momentum stocks to test the lows it saw between $49-50 in December 2018, hence making a double bottom in technical charts. Only then the twice-touched low may become a more reliable long-term support level.In other words, I'd not rush to buy Square stock yet. However, I'd get ready to initiate a position as the price declines further, toward $50. I'd also consider buying covered calls in conjunction with going long on SQ shares.If you already own the shares, you might want to stay the course and hold your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3-5% below the current price point, to protect your profits to date. Bottom Line on Square StockStocks suffer during times of uncertainty and the current political and economic fundamentals offer plenty of questions. Therefore, I'd encourage potential new investors to wait for a few weeks until the smoke clears from the markets and until buyers are definitively back in control in Square shares.Until that time, Square is likely to be a one-step forward, two-steps back kind of stock until it reaches low $50's level. On a final note, if the SQ stock price declines further amid a subdued earnings season, the company could very well become a takeover target.As of this writing, the Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Hot Fintech Market Has Investors Eyeing Rebound in Depressed Square Stock appeared first on InvestorPlace.
Raisin GmbH, which claims to be “first and only pan-European deposit marketplace,” has hired Wealthfront’s Paul Knodel to create its U.S. business. “We had initial discussions with potential American partner banks,” Chief Executive Officer Tamaz Georgadze said in an interview. Raisin was founded by Georgadze, Frank Freund and Michael Stephan in 2012 and has raised almost $200 million in funding.
: "PayPal is up a lot," noted Jim Cramer. In this daily bar chart of PYPL, below, we can see a strong rally from late December. Trading volume looks like it has been shrinking since February, but the daily On-Balance-Volume (OBV) line shows a rise from October and should support the bull case with its signal of aggressive buying.
PayPal Holdings (NASDAQ:PYPL) may have established the digital-payments industry, but there's no denying that its rival, Square (NYSE:SQ) has won the war of publicity since the start of 2018.There's a secret that only owners of PayPal stock know, however, or at least realize. That is, after crushing it in 2017 and holding its ground in 2018, PayPal stock price is crushing it again this year. * 7 Stocks to Buy for Over 20% Upside Potential This may not be the absolute most opportune time to buy PayPal stock if you haven't done so yet; given the frothiness of PayPal stock price, PYPL stock is ripe for some profit-taking. But, there's a reason PayPal stock price is still climbing as if PYPL was a new, high-growth company.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Still Chugging AlongIf you want a number, it's 35%. That's how much PayPal stock price is up since the end of 2018, versus the S&P 500's 15% advance.Even more remarkable is that the big gain took shape at a time when few thought it would, or even could. Early last year eBay revealed it would begin featuring PaPal's Dutch rival, Adyen. In the meantime, Square found a way to facilitate peer-to-peer payments every way except the primary way that PayPal serves consumers and small businesses. PYPL wasn't (and still isn't) interested in handling cryptocurrencies at a time when cryptocurrencies were all the rage. As of late-December, the consensus price target on PayPal stock was just under $100 per share.None of it really mattered, though. As it turns out, PayPal is even better when it's left alone and allowed to do its own thing without anyone standing over its shoulder.The numbers tell the tale. PayPal's revenue surged 13% last year,. and its non-GAAP earnings per share jumped 26%.After, blasting past the consensus price target in April, PayPal stock closed yesterday at $112.15. The Outlook of PayPal StockThis year is expected to be even better for PayPal. Analysts are calling for more than 16% revenue growth in 2019, followed by more than 17% growth next year. Its EPS is expected to reach $2.98 this year and hit $3.51 in 2020.That leaves little to complain about. The acquisition of Venmo and better cultivation of its Merchant Services arm -- which is a stab right at Square -- have been worth the expense and effort. In Q4, Merchant Services' revenue jumped 29% year-over-year. After PayPal works to improve the integration of iZettle, which it acquired last year, the subsidiary should continue to grow by double-digit percentage levels.The key for PayPal stock has been, according to BTIG analyst Mark Palmer, size that others like Square can't match.Palmer also notes that Venmo is nearing profitability, which could prove to be a major catalyst for PayPal stock. ""PayPal's progress toward monetization of Venmo has accelerated," noted the analyst earlier this month. He adds, "The app had 40 million users at the end of 1Q19 and at that point had an annual revenue run-rate of more than $300 million, a sizeable jump from the annual revenue run-rate for the app of more than $200 million that management had announced in January."All told, Palmer now thinks PayPal stock is worth $130 per share. Not YetWhile the rest of the analyst community isn't quite as enthused, given the consensus price target of $116, their unwillingness to raise their targets may have more to do with this year's bullish surge and less to do with a lack of value.That crowd still has a point. The steep rally, while not unlike 2017's big move, has pushed PYPL stock to prices that will be difficult to hold onto. This week's snapback rally into new-record territory is exciting, but also uncomfortably hot.Where any pullback may finally stop and reverse is difficult to say. There's a major support level near $80. A selloff of that scope seems unlikely given the company's outlook, however. More plausibly, a retreat to one of the moving average lines around $100 or $93 will stop any bleeding of PayPal stock.The toughest part of trading is being patient when waiting to buy stocks, and mustering the willingness to pull that trigger in the midst of a pullback. Don't shoot for perfect timing, and don't sweat it if you wade in too early. PYPL is a long-term trade driven by fundamentals that have remained surprisingly solid.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post PayPal Is Impressive, But It's the Wrong Time to Buy PayPal Stock appeared first on InvestorPlace.
Square (NYSE:SQ) continues its slide. The San Francisco-based payment services company has moved lower even as its peers continue to see their stocks go higher. Despite a steady decline, analysts have mostly held to their price targets on Square stock. Although SQ may remain range-bound for some time to come, investors now have an opportunity to make a trade. Source: Chris Harrison via Flickr (Modified) Given Square's recent trading activity, where it goes from here remains in question. The stock has fallen steadily since its 2019 peak of $82.78 per share in late February. The company provided weak guidance in its quarterly report on May 1. Hence, earnings and revenue beats for the most recent quarter failed to stem the tide. As a result, SQ trades near the $65 per share level.What makes this more confusing is that our increasingly cashless society will require Square's services. This trend has benefitted peers such as PayPal (NASDAQ:PYPL) over the last year. Consequently, PayPal and peers such as Visa (NYSE:V), Mastercard (NYSE:MA), and American Express (NYSE:AXP) have exhibited remarkably similar trading patterns over the last year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Not Square.I had taken a bearish position on Square stock in recent months. Even with an improving outlook, I thought SQ would face short-term pain back in March. However, with a further 15%, I have recently begun to hold a more bullish outlook. Square Stock Should Clear TargetsAnalysts appear to agree. The average price target on SQ currently stands at $83.50 per share, very close to the stock's 2019 high. On the low end, one analyst set a $30 per share price target. I could see such a price in a recession. However, with a growing economy and a predicted earnings growth rate of 59.6% this year, I do not think such an outcome will occur.The highest current price target comes in at $101 per share, near the level of its 52-week high. Hence, barring a recession, SQ stock should remain in its range for now.The good news for SQ bulls is that the stock price can rise even if Square remains range-bound. Although profit growth will fall modestly, Wall Street predicts that earnings will still grow at an average rate of 45.47% per year over the next five years. Currently, SQ also supports a forward price-to-earnings (PE) ratio of about 57. With its current level of profit growth, I do not see the PE ratio falling significantly in the near term. Square Stock and ExpansionFor investors who want to look beyond the short term, Square also continues to bolster its ecosystem with new products and initiatives. One example involves its Square Online store.After acquiring Weebly, it was able to offer clients a more comprehensive online store. This now makes Square a competitor of Shopify (NYSE:SHOP) and expands its reach in the fast-growing e-commerce industry. Now, with its recent alliance with Postmates, the reach of its ecosystem expands further.Financial services has also become a focus. Square already makes business loans. In recent months, it has also attempted to expand on its Cash App and break into banking itself. However, this move to gain FDIC approval and become an industrial loan company still needs to pass regulatory hurdles.Moreover, Square has only scratched the surface of its potential reach. Currently, the company only operates in the U.S., Canada, Japan, Australia, and the U.K. Though it has not announced plans to move into other countries, it holds tremendous potential offshore.All of these factors should eventually translate into growth for SQ stock, even if the equity remains range-bound for some time to come. The Bottom Line on Square StockThanks to the falling price, traders have an improved opportunity for short-term gain as the long-term outlook improves for investors. A falling stock price continues to take SQ toward the lower end of its current range.Analysts have held to their $83.50 per share price target. Further, Square continues to expand its ecosystem as they add e-commerce storefronts, small business loans, and delivery. The company also offers a bright future to investors with likely moves into banking and other foreign markets.Whether one wants to make a short-term trade or build a long-term investment, SQ stock has fallen to a level where both types of investors can likely swipe in profits.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post With $83 on the Horizon, Square Stock Finally Is Cheap Enough to Buy appeared first on InvestorPlace.
German fintech Raisin, a savings and investment marketplace backed by Paypal, said on Tuesday it plans to launch in the U.S. market as it seeks to attract savers to higher-yielding deposits offered by its banking partners. Founded in Berlin in 2013, Raisin has brokered 13 billion euros ($14.5 billion) in deposits for banks that include Germany's Commerzbank and N26, and recently launched an investment fund product in partnership with Vanguard. Raisin said it had hired Paul Knodel, a veteran of Citigroup and Merrill Lynch, to lead its U.S. push.
Fintech leader and Visa rival Mastercard stock is testing the upper limits of a new buy zone after already making a 23% gain from a Jan. 31 breakout.
Companies with an LGBT-inclusive workspace have a better chance of attracting and retaining better talent, according to the U.S. Chamber of Commerce Foundation. The organization spoke with 48 Fortune 500 businesses across the country as part of its "Business Success and Growth Through LGBT—Inclusive Culture" report, including during its Inclusion Inc. Florida Regional Forum held on May 17 at the Crowne Plaza in downtown Orlando. The foundation found that 93 percent of those surveyed firms had some sort of inclusive policy for employees.
PayPal (NASDAQ:PYPL) has been ringing the register for shareholders in 2019. And off and on the chart, that looks set to continue in PayPal stock. Let me explain.Source: Official Leweb Photos Via FlickrDoes the U.S. and China's trade war and its potential implications on consumers and businesses have you concerned? In Friday's trading, it certainly had Wall Street's attention.The S&P 500 fell by roughly 0.50%, while PayPal stock found itself under even more duress -- shedding about 1%. Peer-mobile payments play Square (NYSE:SQ) is off 1.25%. But the potential real losers are companies like Apple (NASDAQ:AAPL) which is down a bit more than 2% or the 4.5% bashing in Deere (NYSE:DE).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Behind the market's U-turn is the optimism of the past couple days that the world's two largest economies could find a quick fix quickly faded after Chinese state media deferred expectations for a deal at next month's G-20 summit meeting in Japan. But don't think for a second this is what really matters for PayPal stock.Despite persistent and nagging uncertainties, it's important to focus on the big picture for PayPal stock and not quick-to-flip, daily-market-based, back-and-forth cheers and jeers. And bottom, top and squiggly price lines -- following last month's supportive quarterly confessional led by the company's sizzling digital wallet Venmo business and an equally beneficial price chart showing more than just hopeful promise, it's time to consider going long PayPal stock. PayPal Stock Weekly Price Chart Click to EnlargeIt's been a good year for PayPal stock. Shares are up 32% for 2019 and have captured 20% since breaking out of PYPL stock's year-long, base-on-base pattern in late January. So, what next? I see more upside potential.I believe technically shares can match the gains of the prior bullish leg from April 2017's breakout near $45 to the high of 2018's year-long congestive base. Some investors refer to this type of continuation action as a mirror move or two-step pattern. And in this instance, should it play out that way, PayPal stock should rally towards $140-$150.There's no guarantees of course. And PYPL stock's weekly stochastics are currently overbought. Still, if price and volume matter most, Thursday's relative strength breakout on increased volume to fresh highs from a short two plus week flat base does look compelling.For like-minded investors I'd recommend buying PayPal stock above $115.39. This entry is 1.5% through the pattern high and about .5% north of Thursday's high of $114.66.The purchase obviously sacrifices a tiny bit of upside. But if we're correct about the PYPL's trajectory, it's well worth the cost as this strategy looks to avoid buying a false breakout after the broader market's quick snap back from its trade war panic.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post PayPal Stock Will Continue to Ring the Register for Investors appeared first on InvestorPlace.
Why PayPal Invested in Happy Returns, Uber, and Others(Continued from Prior Part)PayPal secures provisional clearance for iZettle transaction in the United KingdomThe United Kingdom’s antitrust regulator recently provisionally cleared PayPal’s
Why PayPal Invested in Happy Returns, Uber, and Others(Continued from Prior Part)PayPal launches OneTouch as Amazon adds peer-to-peer paymentThe race to dominate India’s fast-growing digital payment market is heating up, and PayPal (PYPL) and