|Bid||0.00 x 1100|
|Ask||0.00 x 1400|
|Day's Range||119.53 - 121.48|
|52 Week Range||74.66 - 121.48|
|Beta (3Y Monthly)||0.86|
|PE Ratio (TTM)||64.74|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||119.61|
The Dow Jones Industrial Average may be a fundamentally flawed index in terms of how it's weighted -- choosing to use price rather than the market cap -- but in terms of what companies are in the index, the Dow Jones can't be beat. Dow Jones stocks represent the "Bedrock of America" and some of the most important companies on the planet. There's a reason why financial media still quotes the close and movements of the Dow Jones Industrial Average.However, some of the thirty Dow Jones stocks are better than others. This is especially true when looking at what names will still be in the index down the road and continuing to lead in the world of business.Some Dow stocks feature very forward-looking businesses models and operations. It's these firms that will still be alive and kicking far into the future. And it's here that investors can score on some future potential and the gains and dividends that come with it. In the end, while the Dow is still important, but some stocks within the index are just better than others.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Monthly Dividend Stocks to Buy to Pay the Bills With all of that said, you might be wondering: Which Dow Jones stocks have the best long-term potential? Here are three of the best stocks to buy from the index. Visa (V)Source: Shutterstock When it comes to long-term bets with the Dow Jones stocks, Visa (NYSE:V) has to be at the top of the list. The firm is one of the biggest plays on the continued shift toward a cashless society. And as one of the oldest and largest names in the space, V continues to dominate as we reach for plastic rather than cash.The reason is Visa's business model. The firm functions as a toll-road and collects fees from merchants, banks and other institutions every time someone uses a credit or debit card. V simply operates a secured payment network and moves money from one account to another. So, despite having a Visa logo on your credit card, V itself isn't issuing credit or lending you money.This middleman position is incredibly important for the future. More transactions continue to hit Visa's network. Over the first three months of the year, Visa processed more than 47 billion transactions. This was a 9% year-over-year jump and it's only growing further. With online commerce and fewer people using cash, Visa will be the dominant force going forward. The firm also continues to make inroads into additional services to keep upstarts like PayPal (NASDAQ:PYPL) at bay.The best part of all of this is that V features very fat margins and amazing cash flow growth. More transactions on its network simply mean bigger profits for the firm. And it continues to share those profits with its investors -- growing its dividend by 850% over the last decade.The future cashless society will run on Visa. That fact makes one of the best Dow stocks to buy for the long haul. Disney (DIS)Source: Shutterstock Let's be honest, as long people have children, Disney (NYSE:DIS) is going to be making money hand over fist. And lately, DIS has plenty of reasons to underscore that fact.For one thing, its buyout of 21st Century Fox created a media powerhouse. This brought many major movie and T.V. franchises under one roof. And if anybody can monetize that content through a variety of channels, it's Disney. And one of those ways will be its new streaming services.Disney has already begun pulling its shows and movies from rival streaming services in order to make them exclusives to its new Disney+ service. That's big because the vast of streaming is kids programming. With the complete Disney, Lucasfilm, Marvel and Pixar movie libraries as plenty of its original programming content from the Disney Channel, Disney+ will be the go-to channel for parents looking for entertainment.When you combine with the firm's new moves in its park and recreation divisions -- such as Star War's Galaxy Edge -- as well as continued movie development from its studios, there's a lot to like about DIS stock for the long haul. And we've already begun to see those results. Just take a look at Disney's record second-quarter earnings. Those great results don't even take into account streaming yet. * 7 ETFs With Oodles of Diversification For investors, DIS stock is a perfect blend of growth for the long haul. Cisco (CSCO)Source: Shutterstock These days, that famous scene in The Graduate wouldn't be about plastics, but about the cloud. Cloud computing, networking, the app economy continues to reshape how businesses and consumers do, well, everything. Which is why Dow Jones stock, Cisco (NASDAQ:CSCO) continues to be an amazing long-term pick.CSCO's bread-n-butter remains networking and communications equipment. It still builds all the switches routers, modems and other guts needed to make modern data centers and the internet/cloud computing function. This isn't a bad business to be in as data center demand continues to grow. Analysts at Jones Lang LaSalle estimate that data center demand will double by 2021 as cloud adoption grows. That will send plenty of money Cisco's way.But the ace up Cisco's sleeve has to be its newfound focus on services and software.The firm now offers plenty of tangential products designed to go along with networking. They can not only build you a network but secure it, offer data analytics and other similar products to look after this equipment. These services often come with long subscription times and very fat margins. It's here, that CSCO has quickly become a cash cow and one of the best dividend stocks in the technology sector.Its approach on both equipment and services sales, coupled with rising overall data center demand, CSCO has the goods to keep growing far into the future.As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Dow Jones Stocks to Buy for the Next Decade appeared first on InvestorPlace.
Facebook Inc.’s controversial Libra cryptocurrency project encountered a blistering reception from the Senate Banking Committee Tuesday morning despite assurances from the social-media giant that it will comply with banking regulations and offer secure transactions.
PayPal’s mobile payments app Xoom hopes to challenge existing blockchain-based platforms as a more convenient alternative.
Properly managed, Libra could replace the dollar as the currency of choice for legitimate international transactions, writes Peter Morici.
PayPal Holdings Inc NASDAQ/NGS:PYPLView full report here! Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for PYPL with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting PYPL. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold PYPL had net inflows of $7.82 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
(Bloomberg) -- Just a few months after leading a funding round for Berlin-based fintech company Elinvar, Goldman Sachs Group Inc. is backing another startup in the German capital.The U.S. lender is investing 25 million euros ($28 million) in Raisin, an internet platform for bank-savings products, in exchange for a low single-digit percentage stake. The new funding brings the total volume of primary investments in the startup firm to 195 million euros. Earlier backers include PayPal Holdings Inc.Raisin intends to use the money to enter two additional European markets and the U.S. It has hired robo adviser Wealthfront’s Paul Knodel to create its American business. “Our goal is to start in the U.S. in 2020, the sooner the better,” Chief Financial Officer Frank Freund said in an interview. Some of the money raised could also be used for acquisitions, he said.Berlin has become a hotspot for ambitious German fintech firms: Peter Thiel-backed smartphone bank N26 is also expanding to the U.S., while banking platform provider Elinvar was set up by former employees of Deutsche Bank AG.Raisin was founded in 2012 by Tamaz Georgadze, who is chief executive officer, Freund and Michael Stephan. So far, the company has brokered 14 billion euros in customers deposits to 80 partner banks. Freund expects that number to increase toward 20 billion euros by the end of this year. On Raisin’s website, financial institutions offer their savings products, mainly competing on interest rates.“Raisin has developed a unique savings marketplace with a solid business model, impressive growth and a loyal customer base,” said Rana Yared, managing director at Goldman Sachs Principal Strategic Investments.Original Story: Goldman Sachs setzt auf Berlin mit weiterer Fintech-Beteiligung(Goldman Sachs quote added in last paragraph)To contact the translation editor responsible for this story: Stephan Kahl at email@example.comReporters on the original story: Stephan Kahl in Frankfurt at firstname.lastname@example.org;Stefan Nicola in Berlin at email@example.comEditors responsible for the original story: Erhard Krasny at firstname.lastname@example.org, Andrew BlackmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
LuxTrust S.A., a leading Digital Trust Services Provider in Luxembourg, and Cambridge Blockchain Inc., a pioneer in digital identity enterprise Software, announced the private beta-testing phase for privacy-protecting European identity platform IDKEEP. The platform provides end users with full control over personal data and over sharing such data with services online, helping digital organizations to effectively manage consent as per GDPR rules and effectively manage validated users’ data, enabling trusted transactions online. In addition, IDKEEP opens a marketplace for data validators who can leverage a network effect of a large customer base, realizing efficiencies and re-use of expensive data validation processes.
Today, PayPal launched Xoom—its international money transfer service—in 32 markets1 across Europe. People in these markets can now use Xoom to quickly send money, pay bills or top up phones to more than 130 markets internationally. Xoom’s expansion to Europe is a significant milestone and another example of PayPal fulfilling its mission to make the movement and management of money more convenient, accessible, secure and affordable.
Shopify (NYSE:SHOP) stock is on fire year-to-date. Shares in the e-commerce platform zoomed 134% from January, with the stock currently trading around $322 per share. While the company's cloud-based SaaS solution for retailers is a game-changer, it is tough to justify a buy at the current valuation levels.Source: Shutterstock But with sales up 50% year-over-year, do the bulls have a point? Read on to see if Shopify stock is worth the sticker price. SHOP Continues to GrowShopify made its bones offering "back-end as a service" for scores of small e-commerce businesses. With that market locked up, SHOP stock needs new growth avenues to move the needle. With the company's move toward large enterprise customers, Shopify has found new ways to scale up the business into a global e-commerce powerhouse.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBased on Q1 2019 results, the growth story continues to play out. Total revenues were $320.5 million, up 50% year-over-year. Subscription revenues were up 40%, as merchants continue to sign up for the platform. The biggest growth was in Merchant Solutions, up 58% YOY. This growth was driven largely by increased merchandise volume among Shopify's third-party merchants.Shopify continues to develop its infrastructure, allowing them to become a global e-commerce powerhouse. The company's payments platform now enables merchants to accept sales in multiple currencies and get paid in their local currency; 40% of eligible merchants now use Shopify's shipping platform. The company's merchant cash advance unit grew 45% YOY.Shopify is to e-commerce what Salesforce is to CRM. The rise of e-commerce continues to be SHOP's strongest catalyst. But as SHOP scales up, will the company stumble along the way?With the Q2 earnings release anticipated to occur in August, within a few weeks, investors will have a clearer picture of Shopify's future growth. But for the time being, Shopify's recent fulfillment center announcement indicates their long-term strategic plans. * 7 Dependable Dividend Stocks to Buy With Fulfillment Center Expansion, Is Shopify the Next Amazon?Shopify surprised Wall Street with their announced plans to build their own fulfillment centers. The move created speculation that SHOP will go toe-to-toe with Amazon (NASDAQ:AMZN) for a bigger piece of the e-commerce pie.But can SHOP become the next AMZN? Building out their infrastructure makes Shopify a stronger partner for third-party retailers. But with the company barely generating $1 billion in sales, how do they expect to finance this massive build-out?Based on CFO Amy Shapero's presentation at Shopify's Investor Day, the company anticipates the fulfillment investment to be spread over the next five years. Shopify expects "incremental revenue to largely offset costs". The company anticipates positive returns on this investment to occur after 2023.The fulfillment build out is a long-term investment. Investors today pay a substantial premium for the expectations of Shopify's game-changing moves. But can this anticipated growth alone justify SHOP stock's current valuation? Valuation: How SHOP Stock Stacks Up to Its PeersWith SHOP continuing to post operating losses as it invests in growth, enterprise-value-to-sales is the best tool to compare SHOP stock's valuation to peers. Shopify currently trades at a EV/Sales ratio of 28.Here are the EV/Sales ratios of Shopify's main publicly traded peers:Amazon: 4.23PayPal Holdings (NASDAQ:PYPL): 8.5Square (NYSE:SQ): 9.4Twilio (NYSE:TWLO): 24.7The Trade Desk (NASDAQ:TTD): 21But given that Shopify is purely a SaaS platform, it is tough to compare valuation against its direct competitors. Amazon, being a full-fledged retailer as well as a marketplace, obviously trades at a lower EV/Sales valuation. PayPal is a fully scaled up operation, with slower growth but high operating margins.Twilio and The Trade Desk operate in different industries, but are similar to Shopify in that both are cloud services providers (cloud communications for Twilio, digital advertising for The Trade Desk).With Shopify stock trading at a premium to fellow B2B service providers TWLO and TTD, SHOP appears richly valued. While the company is making leaps and bounds dominating e-commerce, the stock is not a buy at these valuation levels. * 10 Stocks Driving the Market to All-Time Highs (And Why) Bottom Line: SHOP Stock Not A Buy TodayTen years down the line, Shopify could be a formidable competitor to Amazon. But at the current trading price, SHOP stock is too overvalued for investors to consider.While the company has seen significant growth in revenues, the company has yet to be profitable. While the announced fulfillment expansion is a positive catalyst for future growth, investors need tangible results before putting in a buy order.Short term, SHOP stock is a sell. A massive pullback could signal a buying opportunity to place a bet on SHOP's future prospects. But until then, investors should be cautious before chasing this growth story.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Why Short-Term Investors Should Avoid Shopify Stock appeared first on InvestorPlace.
It has been very hip to be long Square (NYSE:SQ) stock these past few weeks. Now, however, it's time to consider being less trendy and waiting for a less carefree pullback that's making increasingly good sense off and on the price chart. Let me explain.Source: Shutterstock For bullish investors it has been a wonderful few weeks since I last wrote about SQ stock. Interest rate optimism and lesser U.S. China trade war saber rattling have allowed the broad-based, large cap S&P 500 and tech-heavy Nasdaq indices to climb by 4.5% and 7%, respectively, to marginally fresh highs. But it gets even better for SQ stock investors.Over this same period, Square stock has rocketed higher by 20% while building the right side of a very constructive-looking corrective base on the price chart. It's all good, right? Longer-term, I remain optimistic. But in the short-term, the risks have also increased for bullish investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSQ's earnings are out in two weeks and the last time the company delivered its results, investors were far from happy. A mixed report failed to live up to expectations, which led to shares getting hammered by an immediate 8%, then continuing to outpace the broader markets on the downside during May's broad-based corrective selloff.But following Square stock's rally this past month, shares are nearly 11% above last quarter's post-earnings confessional. Furthermore, what many had viewed as a pricey growth play has become even more expensive with today's forward price-to-earnings ratio of 74 and PEG ratio of 2.24. By comparison, peer PayPal (NASDAQ:PYPL) trades at 34x forward earnings and a PEG ratio of 1.98. * 7 Dependable Dividend Stocks to Buy Today, the price of SQ stock has less margin for error to keep Wall Street happy. And on the price chart, shares are warning investors that pressing the transaction button to buy SQ is likely to come with an undesirable late penalty fee of sorts. SQ Stock Weekly Chart Click to EnlargeI'm a fan of larger constructive bases like Square's generally setting the stage for higher prices. But for timing purposes, a pattern breakout through Square's February mid-pivot high of $84.66 within this particular double-bottom pattern is at increased risk of being a difficult entry point for bullish investors.An overbought daily and weekly chart stochastics indicator and price action outside both SQ chart's Bollinger Bands stresses the heightened likelihood of a pullback or even a failed breakout. In either scenario breakout buyers will be faced with paying too much for shares in the near-term and quite possibly a loss if the pattern entry is managed with a technical exit to minimize exposure.A quick look at a lopsided crop of bullish articles penned recently at InvestorPlace, also gives me reason to think the strong price action in SQ stock won't continue without some challenges. I'm agreeable with most of the optimism, such as Luke Lango's article at InvestorPlace this past week. Still, from a trading vantage point, it's another warning sign shares of Square are more prone to downside risk than otherwise.My suggestion for SQ is to simply wait for a pullback that's strong enough to remove today's rampant bullishness in shares while keeping the integrity of the pattern intact. Technically, I'd like to see $77 hold during a pullback without questioning the durability of this particular base. As such, that's my line in the sand if an opportunity to buy Square stock on weakness unveils itself over the coming couple of weeks. 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 market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Why Itas Less Hip to Be a Square Stock Investor Right Now appeared first on InvestorPlace.
Second-quarter earnings are usually pretty sleepy, with forecasts for the back-to-school and holiday periods tucked away for later review amid summer vacation schedules. You may want to pay attention this year, though.
The old-fashioned name belies some very smart software that makes it a buy. Also, analysts’ views on Align Technology, American Airlines, and Wynn Resorts.
Though eBay is entirely free to use for buyers, the $36 billion company generates significant revenue from its sellers and through advertisements.
Seven months ago, global financial markets were in disarray. Rates were rushing higher as the Federal Reserve was tightening monetary policy against the backdrop of record-high corporate debt levels and slowing economic expansion. Trade tensions were running high. The yield curve had inverted. Recession fears were everywhere. Stocks were in free fall. The S&P 500 dropped 20% in a matter of months, and dipped below 2,350.Today, everything has changed.The Fed has considered going into rate-cut mode. Economic expansion globally has stabilized. Trade tensions have cooled. The all-important 10-2 spread on the yield curve remains positive. Recession fears have disappeared. Stocks are in rally mode. Year-to-date, the S&P 500 is up almost 21%, and for the first time ever in early July, the index peaked above 3,000.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's a long and impressive journey from the 2,350 low on Christmas Eve 2018. It's worth taking a closer look at to understand just exactly what is going to happen to stocks going forward.One way to take a closer look: examine the stocks driving this big market rally, and see if they have sufficient firepower to keep the rally alive for the next several months. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond With that in mind, let's take a look at 10 $100 billion-plus market cap stocks which are all up more than 35% year-to-date, and see where these red hot large cap stocks are going next. Hot Stocks Driving The Market Higher: Facebook (FB)Source: Shutterstock Market Cap: $575 BillionYTD Gain: 49.8%How It Got Here: Social media giant Facebook (NASDAQ:FB) shook off data privacy concerns in 2019, and it reported continued robust user and digital ad revenue growth. At the same time, margins are starting to stabilize as big initial investments in data security are phasing out. Facebook is also pivoting into commerce, and in so doing, unlocking an entirely new revenue stream which could potentially become as big as the digital ad revenue stream. Net net, the growth narrative here has improved dramatically in 2019, and in response, FB stock has rallied around 50% year-to-date.Where It's Going Next: Facebook stock will stay in rally mode for the foreseeable future. The valuation remains reasonable at 22 times forward earnings for what is projected as 20%-plus revenue growth over the next several years. Further, the commerce growth catalyst has yet to even materialize, and won't until 2020. Ahead of that catalyst -- which is arguably the biggest catalyst for this stock ever -- investors will continue to bid up FB stock to much more aggressive valuation levels. Mastercard (MA)Source: Shutterstock Market Cap: $280 BillionYTD Gain: 49.2%How It Got Here: Payments processing giant Mastercard (NYSE:MA) has surged 49% higher so far in 2019 thanks to a more favorable economic backdrop powering continued strong volume, revenue and profit growth. Specifically, as rates have gone down and U.S. consumer confidence has rebounded, consumer spending has picked up. As that has happened, Mastercard's volume and revenue growth rates have likewise rebounded. At the same time, management has exercised disciplined cost control, margins have expanded and profit growth has remained robust. This has powered MA stock to new highs. * 10 Stocks to Sell for an Economic Slowdown Where It's Going Next: MA stock should head higher from here into the end of 2019. That's mostly because the consumer economic backdrop (low rates, low unemployment, big wage gains, etc) lends itself to continued robust volume, revenue, and profit growth at Mastercard. But gains going forward should also be more muted, thanks to what has become a stretched valuation. It sits at 36.5 times forward earnings, versus a five-year average forward multiple of 26.3. Thus, while MA stock will stay in rally mode, future gains will be muted relative to historical gains. PayPal (PYPL)Source: Shutterstock Market Cap: $141 BillionYTD Gain: 42%How It Got Here: Alongside Mastercard, peer payments processor PayPal (NASDAQ:PYPL) has also risen more than 40% in 2019 on the back of favorable economic fundamentals and growth trends. Broadly speaking, low rates and a strong labor market have supported strong consumer spending over the past several quarters. A bunch of that spend is being directed into the online channel thanks to the secular shift towards e-commerce. Of that online consumer spending pie, a healthy portion is being processed through PayPal. The platform's volume, account and revenue growth rates have consequently remained robust. Profit growth has similarly remained robust, and that sustained growth has pushed PYPL stock to new highs in 2019.Where It's Going Next: Much like MA stock, PYPL stock should head higher into the end of 2019, but at a more muted pace. Growth trends here should remain favorable thanks to the supportive consumer economic backdrop. But, valuation is also extended, at 40-times forward earnings, versus a five-year average forward multiple of 29. Thus, valuation and growth will be in a tug-of-war over the next several months, and that ultimately means that PYPL stock will grind higher at a tepid pace. Netflix (NFLX)Source: Shutterstock Market Cap: $164 BillionYTD Gain: 47%How It Got Here: Another large-cap winner in 2019 has been streaming giant Netflix (NASDAQ:NFLX). NFLX stock is up more than 40% year-to-date on the back of three things. One, the over-the-top (OTT) streaming growth narrative has remained vigorous in 2019. Consumers globally continue to pivot into the OTT channel. Two, Netflix has continued to develop quality original content with high perceived value. That strong original content portfolio has enabled Netflix to continue to win over the lion's share of global OTT subs. And three, the economics continue to grow more favorable as more subscribers join the platform. NFLX stock margins are marching higher, powering doubly robust profit growth. * 7 Retail Stocks to Buy for the Second Half of 2019 Where It's Going Next: The three tailwinds which have driven big gains in NFLX stock year-to-date, should persist into the back half of the year. That should keep NFLX stock on a winning trajectory. The global OTT sub market will continue to grow. Netflix will maintain its market leadership position thanks to its original content portfolio. And margins will stay on an uptrend as scale drives positive operating leverage. Valuation will become more of an issue in the back half of the year, but the growth potential for NFLX stock is so big long-term that, with rates depressed, it should continue to run higher for the foreseeable future regardless of near-term valuation friction. Lockheed Martin (LMT)Market Cap: $104 BillionYTD Gain: 41%How It Got Here: For shares of global aerospace and defense giant Lockheed Martin (NYSE:LMT), 2019 has been year of steady and consistent gains. LMT stock has benefited from cooling U.S.-China trade tensions, stabilizing global growth trends, continued robust government defense spending, a few sizable contract wins, strong quarterly numbers, a healthy full-year 2019 guide and a plunge in fixed-income yields. That last has made the 2.3% yield on LMT stock that much more attractive.Where It's Going Next: LMT stock should be able to head higher in the back half of 2019, mostly because all of those aforementioned tailwinds will remain in play. But the magnitude of the gains will be substantially lower than what the stock experienced in the first half. That's mostly because the yield and forward earnings multiple are now back to historically normal levels, so further upside through multiple expansion is unlikely. Starbucks (SBUX)Source: Shutterstock Market Cap: $108 BillionYTD Gain: 41%How It Got Here: Global coffee retail giant Starbucks (NASDAQ:SBUX) has rallied to all-time highs in 2019 for three big reasons. First, the China growth narrative has gained momentum as China's economy has shown signs of stabilizing in 2019. Second, the U.S. growth narrative is rebounding thanks to improving traffic trends. Third, margins have remained relatively stable on improving top-line trends. Put together, those three factors have sparked a 41% year-to-date rally in SBUX stock. * 10 Best Stocks for 2019: A Volatile First Half Where It's Going Next: It's tough to see SBUX stock rallying much further from here. Growth trends still aren't great. Traffic trends have been largely negative for several quarters, and remain negative today, implying that indie coffee shop competition is continuing to pressure Starbucks. Further, margins aren't moving higher. They are just flat. Thus, you have a slowing-top-line-growth company with flattish margins. That's not a great growth profile. But, at an above-average 29-times forward multiple, SBUX stock is priced for great growth. This discrepancy could ultimately short-circuit the big 2019 rally in SBUX stock. Citigroup (C)Source: Shutterstock Market Cap: $166 BillionYTD Gain: 39%How It Got Here: Although a flat yield curve and low rates typically aren't good things for bank stocks, shares of major U.S. bank Citigroup (NYSE:C) have nonetheless rallied in a big way (up 39% year-to-date) due to a flurry of other tailwinds. Namely, consumer confidence and spending have both remained healthy in the U.S. Citigroup's numbers have consequently remained healthy. C stock also passed the most recent stress test, and in response, hiked its dividend, which now seems especially attractive next to a depressed 10-Year Treasury yield.Where It's Going Next: It's tough to see Citigroup stock rallying much further into the end of 2019. The valuation is at historically normal levels, while growth trends going forward should be below-normal given low interest rates and a flattish yield curve. A rate cut will help the yield curve situation, some, but not enough to give C stock more firepower. As such, it looks like the best of the Citi rally may be over. Visa (V)Source: Shutterstock Market Cap: $392 BillionYTD Gain: 37%How It Got Here: The third payments stock on this list is Visa (NYSE:V). Much like the other two payment stocks, Visa finds itself up big year-to-date because of favorable market conditions and growth trends. Low rates and continued strong consumer economic conditions have led to sustained strong consumer spending. At the same time, the pivot to non-cash transactions has gained momentum, so most of this consumer spending is happening through card transactions. The king of card transactions? Visa. As such, Visa's numbers in the first half of 2019 have been really good from a volume growth and margin expansion perspective. Those really good numbers have propelled Visa stock higher. * 7 A-Rated Stocks to Buy for the Rest of 2019 Where It's Going Next: At the risk of sounding like a broken record, Visa stock's go-forward growth prospects are nearly identical to those of the other two payments stocks on this list. That is to say, the stock will stay on an uptrend into the end of the year because the underlying growth trends will remain favorable. But, the slope of that uptrend will flatten out because Visa stock is already priced for greatness -- 29 times forward earnings, versus a five-year average forward multiple of 25). Microsoft (MSFT)Source: Shutterstock Market Cap: $1.06 TrillionYTD Gain: 38%How It Got Here: Technology giant Microsoft (NASDAQ:MSFT) has surged 38% higher in 2019 -- and shot to a market cap above $1 trillion -- because the company's core cloud businesses have bounced back in a big way. Ever since Satya Nadella took over the reins in 2014, Microsoft's growth narrative has been all about developing and scaling cloud solutions. Those cloud solutions have been on a secular uptrend ever since. So has MSFT stock. But cloud growth rates dropped in late 2018 as macroeconomic uncertainty weighed on global cloud capex, and depressed Microsoft cloud demand. That uncertainty didn't last very long. By early 2019, as trade tensions cooled and global economic trends stabilized, cloud capex accelerated higher. So did Microsoft's cloud businesses. That growth re-acceleration has driven MSFT stock substantially higher year-to-date.Where It's Going Next: MSFT stock will stay on a healthy medium-to-long-term uptrend so long as the company's cloud businesses continue to grow at robust rate. For the foreseeable future, this is exactly how things should play out. Robust cloud spend is supported by multiple tailwinds, ranging from the fact the data is only becoming more valuable and more abundant, to the fact that global economic conditions are improving. Low rates will also help support what has become a stretched valuation in MSFT stock. As such, Microsoft's cloud businesses project to remain healthy in the back half of 2019. Thus, MSFT stock projects to keep moving higher. Adobe (ADBE)Market Cap: $150 BillionYTD Gain: 38%How It Got Here: Cloud giant Adobe (NASDAQ:ADBE) has soared 38% higher in 2019 as strong numbers have reaffirmed the company's secular growth narrative, against the backdrop of a low rate environment which has supported a richer valuation for ADBE stock. On the first point, Adobe is a visual cloud giant positioned for huge growth as: 1) consumers and enterprises continue to adopt cloud solutions, and 2) consumer and enterprise interactions continue to become more centered around visuals than ever before. Adobe's first half 2019 numbers were very good, and supported the notion that this secular growth narrative remains on track. On the second point, a plunge in the 10-year yield from 2.8% to 2% in 2019 has helped support substantial multiple expansion for ADBE stock from 28 times, to 40 times forward earnings. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Where It's Going Next: ADBE stock should continue to move higher in the back half of 2019 so long as two things remain true. First, Adobe needs to keep reporting strong quarterly numbers which reaffirm the secular bull thesis. That should happen, given healthy economic conditions and strong tailwinds supporting visual cloud solution adoption. Second, rates need to remain low to support ADBE's now bigger-than-normal valuation. This, too, should happen, since the Fed appears poised to cut rates, and such cuts should keep rates depressed for the foreseeable future.As of this writing, Luke Lango was long FB, PYPL, NFLX, and ADBE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post 10 Stocks Driving the Market to All-Time Highs (And Why) appeared first on InvestorPlace.
Late Thursday, Trump hurled three tweet bombs at cryptocurrencies, specifically naming Bitcoin and Facebook’s (FB) Libra.
Startup investor Greg Kidd sees Facebook Libra taking a page from Apple's playbook in bringing established players into the tent as both companies push deeper into payments.
Walmart (NYSE:WMT) stock keeps hitting new all-time highs. Meanwhile Amazon.com (NASDAQ:AMZN) just reclaimed the $2,000 per share level for the first time this year. Amazon stock is only a stone's throw away from breaking its own all-time high at $2,050 per share.Source: Shutterstock With both retailers are seeing their shares prices skyrocket, which is the better play for investors? Is Walmart, the king of physical retail, or Amazon, the king of online, doing better? Here's what investors need to know. Walmart: Ecommerce Suffering Sizable LossesA recent article in Recode reported that Walmart's ecommerce division is losing at least $1 billion per year. That's on sales of roughly $21 billion annually, suggesting that Walmart's online sales have at least a negative five percent profit margin.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond This makes Amazon, whose retail is marginally profitable, look great by comparison. Several years after Walmart's big Jet.com acquisition, it still hasn't gotten much closer to making money online.The Recode article suggests that some of Walmart's management team is losing patience with the company's online efforts. If so, that could offer a huge boost for Amazon stock. If Walmart pulls back on its online efforts, it will be a massive win for Amazon in its home market. Amazon: Rivals Making Big Payments PlaysOne area of potential weakness for Amazon is with payments. Amazon has the best check-out experience online on its own website, and Amazon Pay has achieved some success.But it never built something like eBay (NASDAQ:EBAY) did with PayPal (NASDAQ:PYPL) gathering huge fees and revenue streams from outside its own platform.Other online retailers, by contrast, have been able to develop huge businesses in this area. Alibaba's (NYSE:BABA) Alipay is one big example.MercadoLibre (NASDAQ:MELI) has its thriving MercadoPago platform as well. Other independent emerging markets payment companies such as PagSeguro (NASDAQ:PAGS) have been racking up strong valuations as well.Meanwhile, Amazon's hold on the best checkout technology is also under attack. Startup Bolt just raised a bunch of money to expand its checkout platform which allows smaller retailers to compete more effectively with Amazon.Bolt helps give small websites faster checkouts, fraud protection, and so on, making it easier for firms to compete with Amazon in user experience. Walmart Score Big in IndiaAnd it looks like Walmart scored a big entry into this market as well. That's through its Indian Flipkart acquisition.At the time, analysts criticized Walmart for overpaying; Flipkart was supposed to have many obstacles in that market. And while the ecommerce part of Flipkart has arguably underperformed expectations, Walmart got a huge bonus.Flipkart has a mobile payments division called PhonePe (pronounced as Phone Pay). Though it was just founded in 2015, PhonePe has already taken off.The Indian government cracked down on cash a couple years ago. It aimed to reduce tax evasion. In doing so, it set the stage for digital payments. PhonePe's business has absolutely exploded since then.PhonePe is now aiming to raise $1 billion of funding at a $10 billion valuation. At least one analyst thinks the firm is worth 50% more than even that gaudy figure.Given that Walmart only paid $16 billion for Flipkart, they may have gotten a steal. If the payments arm alone is worth $10 billion+, the core Flipkart retail business was a bargain. Amazon: Not Winning at GroceryIn theory, Amazon's blockbuster move to buy Whole Foods was supposed to shake up food retail forever. So far, Amazon's actual results have fallen far shorter of consumers' expectations.Some of this is on Amazon for its messaging. Amazon started off with seemingly aggressive price cuts, giving folks the expectations that Whole Foods would be more reasonably priced. Perhaps Whole Foods would finally lose the "Whole Paychecks" nickname.But it wasn't to be. Bloomberg reported that the price of a constant basket of roughly $400 of food at Whole Foods has dropped by only $10 - or a mere 3 percent - since Amazon took over.This figure is based on analysis from Gordon Haskett Research Associates. That firm has priced out the same group of goods at one New Jersey Whole Foods location nine times over the past two years.It has found that Whole Foods did cut prices heavily in one area: produce. The cost of Whole Foods' produce has fallen more than 15% since 2017. Dairy has also dropped a few percent. But frozen goods, dry goods, and beverages have all been about flat.Meanwhile, the price of bakery items and of snack foods have gone up significantly since Amazon took over. On net, the average consumer has saved hardly anything unless they only shop at Whole Foods for produce.This could be a major problem for Amazon stock going forward as it faces off with its biggest rival in grocery: Walmart. Say what you will about Walmart's e-commerce efforts, they are the best of the national retail chains at logistics, hands down.That's how Walmart has maintained such low prices over the decades, and it's how Walmart is able to compete with Amazon on one and two-day shipping now.If Amazon can't figure out how to lower grocery prices and still make money, Walmart will eat its lunch in this all-important sector of the retail economy. Amazon Stock VerdictAmazon stock and WMT stock are rising for different reasons. Amazon Web Services continues to perform phenomenally. As a result, investors are delighted to own Amazon stock.With all the SaaS and cloud stocks soaring, it makes sense that Amazon is powering to new highs.But in its core retail business, Amazon is showing some vulnerability. It's really underwhelmed with its Whole Foods rollout in particular.If Walmart is willing to keep taking losses in ecommerce for the time being, it may gain further ground on Amazon as the physical and ecommerce channels continue to integrate.If Amazon can't do better in grocery, Walmart has a huge opportunity to reclaim market share online.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 * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Walmart Is More of a Threat to Amazon Stock Than You Might Think appeared first on InvestorPlace.
The digital payments giant is building for long-term growth with its partnership strategy and new initiatives. But with the recent stock price increase, the valuation provides little room for error.