65.79 +0.04 (0.06%)
After hours: 7:59PM EST
|Bid||65.65 x 1800|
|Ask||65.72 x 800|
|Day's Range||64.88 - 66.07|
|52 Week Range||49.82 - 83.20|
|Beta (3Y Monthly)||3.36|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 25, 2020 - Mar 2, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||73.79|
Barbara Morrison, president of Oakland-based TMC Financing, has worked with thousands of small business owners over the years to help them secure commercial real estate financing backed by the Small Business Administration. Increasingly, she doesn’t like what she sees: More small businesses becoming dependent on convenient but costly merchant cash advances.
Jack Dorsey's plan to live in Africa for 3-6 months in 2020, plus Twitter's stock performance, is prompting calls for him to step down as CEO.
The past decade saw a ton of innovation from incumbent companies — like Amazon, Google, and Facebook. But new companies emerged as well and made their mark.
Instead of providing no-cost meals to employees onsite, Square employees, known as Squares, will be encouraged to patronize nearby restaurants.
Without a doubt, e-commerce marketplace Shopify (NYSE:SHOP) has been a revelation. After a brilliant performance in 2017 and a respectable one in 2018, Shopify stock is simply on fire this year. Despite a general slowdown in momentum in the second half, shares are still up nearly 169% year-to-date. Still, with so much positivity, it's fair to wonder if this rally is sustainable.Source: Paul McKinnon / Shutterstock.com Based on Shopify's disclosure about its holiday sales, the answer is a resounding "yes." From Black Friday to Cyber Monday, SHOP subscribers generated $2.9 billion in revenue. This represents a massive 61% jump from the year-ago results of $1.8 billion. Not surprisingly, SHOP stock jumped over 6% in the markets on the emphatically bullish disclosure.Aside from the growth implications, Shopify stock now has more credibility. Management has set ambitious goals, planning to spend $1 billion over the next five years to bolster its businesses. Primarily, the company sets up e-commerce platforms for small businesses. It also has partnerships with larger enterprises to handle their online payments and shipping services.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNevertheless, it's a tough feat to consecutively generate double- or triple-digit returns. Although SHOP stock is levered to one of the most-powerful revolutions in business (e-commerce), competition is fierce. Furthermore, a challenge for Shopify is that it's an entrepreneurial platform.This contrasts with an organization like Square (NYSE:SQ). Featuring applications that are relevant for both small businesses and non-entrepreneurs (e.g., its Cash App), Square's services have broader appeal. But with Shopify, you must have the entrepreneurial bug to make use of the platform. * 7 Stocks to Buy in December Moving forward, I believe this limited scope makes buying Shopify stock now a risky proposition. Declining Growth in Gross Payment VolumeOne helpful metric to determine the popularity of an e-commerce platform is gross payment volume (GPV). This is the total spend that merchants process minus refunds. Ideally, you'd like to see strong growth in this metric as it lends credibility toward expansionary strategies.For Shopify stock, the interval from the fourth quarter of 2016 through third quarter 2017 witnessed the most-robust year-over-year growth in GPV over a one-year period, averaging 90%. However, the rate has declined noticeably since then. For example, in the last four reported quarters, GPV growth averaged 60.3%. Click to Enlarge Source: Chart by Josh Enomoto Is this slowdown by itself enough to warrant panic on SHOP stock? Probably not. However, if I extrapolate the growth rate out to Q4 2020, using growth rate data from Q4 2016 onward, I calculate an average of 40.7% GPV growth over the next five quarters.Implementing some simple math, I come out with a Q4 2020 GPV haul of $11.4 billion. While that sounds like a lot from where we stand, it's not that impressive contextually. Click to Enlarge Source: Chart by Josh Enomoto For instance, Square's GPV in Q3 2019 was $28.2 billion. And it also made money in the quarter, whereas Shopify's net income losses are expanding. Square's forward price-earnings ratio is 70 times, whereas SHOP stock is at a blistering 417 times.In other words, you're paying an extremely high premium for a platform that appears to be peaking. Slowing Revenue Growth a Concern for Shopify StockAnother factor that gives me pause is top-line sales. Looking at Shopify's numbers quarter to quarter is somewhat misleading. For example, in Q3 2019, the company rang up $390.5 million, which is nearly 45% YOY growth.By itself, this figure is very impressive. However, since Q1 2016, the growth rate has declined for 15 straight quarters. I find this odd because, with quarterly sales of $390 million, you should still have the law of small numbers working in your favor. This is especially the case if your ultimate ambition is to challenge Amazon (NASDAQ:AMZN), which Shopify intends to do. Click to Enlarge Source: Chart by Josh Enomoto Using the above extrapolation method, I forecast average YoY revenue growth over the next five quarters at 35%. That ultimately translates to 2020 revenue of $2.07 billion.If we assume that 2019 revenue hits around $1.6 billion (it's currently tracking for $1.42 billion), this would represent around 29% annual sales growth. It's a respectable number, but it's a far cry from challenging Amazon. * 7 Exciting Biotech Stocks to Buy Now From 2017 to 2018, Shopify revenue jumped 59%. And in the prior-year comparison, sales increased 73%. Thus, the growth rate isn't moving in the right direction. Takeaway on SHOP StockOf course, the immediate counterargument to these forecasts is that they could be well off the mark. And that's a very fair point. However, I'm coming up with my numbers based on available data. What they show consistently is that fundamental momentum is declining. Not good news for SHOP stock investors.Ultimately, though, I'm not here to bash Shopify stock. Rather, I'm cautioning against buying shares at their current market premium. I get the idea that the company provides a fun, intuitive platform for entrepreneurs. However, small businesses fail more often than they succeed.From that perspective, the declining rates in GPV and revenue become even more of a cautionary tale. I like the concept of Shopify stock. I'm just not ready to pay that steep a price.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post Avoid Buyeras Remorse by Avoiding Shopify Stocks for the Near Term appeared first on InvestorPlace.
Global Cannabinoids, a bulk and wholesale supplier of U.S. hemp-derived cannabinoids, has officially opened its new online store powered by Shopify Inc (NYSE: SHOP ). B2B customers can now purchase bulk ...
We all want to make the best decisions in our investing, but how do we know where and how to allocate our funds? That’s the big question, and it’s not always easy to answer. With many thousands of stocks available to choose from, we need help.So, we turn to the experts, the Wall Street professionals who make a living by analyzing the market. Stock analysts watch the market for us, tracking the ups and downs of equities but more importantly, the reasons behind stock movements. Some of them are better than others, and they all come the patina of authority; their long experience in the field and institutional backing can make it hard to ignore their word.But there are well over 5,000 professional analysts on the rolls of Wall Street’s banks and investment firms, and it’s difficult for an outsider to decide who to follow. That’s where TipRanks steps in. Using sophisticated natural language algorithms, TipRanks tracks the performance of both the analysts and the stock markets, correlates the two, and makes the data available for investors. Stock and market data are presented as background, while analysts are rated and ranked based on their success and returns possible from following their recommendations. In short, TipRanks makes it possible to know who to trust.The results show that Cantor’s Joseph Foresi stands at the head of the pack, ranked 1 out of more than 5,700 professional financial analysts. (To watch watch Foresi’s track record, click here)Foresi’s proven track record has brought him to the 1 spot in the TipRanks database. He has the expertise we all want to follow – and when points out stocks with high return potential, investors listen. We’ve pulled up three of his recent reviews and examined them closely through the lens of TipRanks’ Stock Screener, to learn just why Foresi sees them as such compelling buys.International Money Express (IMXI)In today’s international economy, moving funds across borders is more important than ever. That can be as true for individuals as it is for large companies and governments. International Money Express (also called Intermex) fills this roll in North America’s personal market, offering fast and reliable money transfer services to customers sending funds outside the United States, primarily to Latin American and the Caribbean, but also to several African nations. The service is aimed at the expat labor force, immigrants to the US who remit their income to family abroad.IMXI is licensed to operate in all 50 states, plus D.C. and Puerto Rico. The service is available online, in person through agents or branches, or via money wires. Customers can also pay recurring bills or process third-party checks with IMXI. These are urgent services, much in demand by a customer population that has less access to traditional banking services. Assistance is available in person, and also online or by telephone.The money transfer industry is cash-rich by definition, and IMXI has shown strong performance in recent months. The company reported impressive 17.7% year-over-year quarterly revenue growth, with a top line of $85.3 million and net income of $4 million. More importantly, Intermex continues to improve market share and saw 19% growth in transactions completed and 21% growth in dollar volume.Foresi was impressed enough by Intermex’s performance to raise his price target on the stock to $17, while reiterating a Buy rating. If everything goes well for IMXI, the stock could soar about 30% from current levels, according to the top analyst.Foresi wrote, after the quarterly release, “We believe the company’s targeted business model, which we view as a competitive advantage, will help it continue to gain market share in Latin America, the fastest-growing US remittance region. We think Intermex can produce high-teens growth with steady margins with an upward bias, resulting in significant annual earnings growth and an improving balance sheet.”Overall, IMXI has five recent analyst reviews, including Foresi’s. Of these, 4 are Buys and 1 is a Hold, giving this stock a Strong Buy consensus rating – a view that solidified after the Q3 report. Shares are priced at $13.00, and the $17.50 average price target indicates confidence in a 35% upside potential. (See IMXI stock analysis on TipRanks)PagSeguro Digital (PAGS)Sticking to Latin America, Foresi reviewed PagSeguro. This online e-commerce payment service has become a big name in Brazil’s banking sector. Pag offers service to commercial clients, internationally as well as in Brazil. It is also moving into the digital banking sector for individual accounts.As a region, Latin America has growing importance in the world economic system, and Brazil is considered an important figure among emerging economies. PAGS has built its niche on this regional situation, and while the stock has slipped since September, it is still up 69% this year.PAGS reported clear gains in revenue and income for Q3. Total revenues, at $346.4 million, were up 30% year-over-year, and income, at $92.4, showed an even stronger gain of 34%. In the earnings call, CEO Ricardo Dutra said of his company’s strategy, “…we continue to focus on the long-term market, take advantage of being the first mover, having a complete digital banking ecosystem, the most recognized brand and UOL online distribution, which in our view are unique and unreplicable strengths to operate in long-term markets.”Foresi, covering the stock after the quarterly results went public, maintained his Buy rating – but he was cautious due to economic volatility in Brazil generally and lowered his price target to $46, which still implies plenty of room for growth – 50 % on the upside.Foresi noted, “Numbers came in below expectations, but in line with the recent pre-announcement.” After noting that PAGS’ core online payment services to merchants are slowing down, he also notes the accelerating shift to digital banking as a positive move: “Management notes strong adoption in PagBank, with 1.9mn active users and +53% y/ y growth in Prepaid Card TPV. Brazil currently has 68mn unbanked citizens, with 57% of the population interested in digital banks.”Wall Street generally agrees with Foresi on this call. PAGS has four recent ratings, of which 3 are Buys and 1 a Hold. Overall, the consensus rating is a Strong Buy, while the $43 average price target suggests a 35% upside from the $31.75 current share price. (See PagSeguro stock analysis on TipRanks)Square (SQ)Foresi’s third recent Strong Buy rating is probably familiar to you. Square has emerged as a powerful competitor in the digital payment sphere. It offers an arrange of financial services, including mobile payment, on the merchant end, and the Cash App for peer-to-peer transaction on the customer end.Where Square differentiates itself from the competition is in gadgets. The company doesn’t just offer online payment capability – it also offers hardware to make it possible. The original Square Reader allows smartphones to scan credit cards, and took payment mobile, while the Square Stand turns Apple iPads into cash registers. Money-saving devices and convenient services have made Square popular with small and/or traveling merchants.Square has shown solid growth, with gross payment volume increasing by 25% in both Q2 and Q3 of this year. The recent Q3 showed top and bottom line gains – revenues were up 43% year-over-year, at $1.27 billion, while the EPS almost doubled from 13 cents a year ago to 25 cents in Q3 2019. The EPS also beat the forecast by 25%.It is hard to argue with performance like that. Foresi, writing just after the Q3 release, reiterated both his Buy rating and his $91 price target for Square. He said, to justify his stance, “Square reported results above expectations, updated 2019 guidance, and provided a positive initial outlook on 2020, including clarity on margin expectations. Gross Payment Volumes growth exceeded expectations, while the Cash App continued to perform well… We are attracted to the company’s increasing market penetration in its Seller and Cash Apps business…” Foresi’s price target shows his confidence in a 36% growth potential for SQ shares, well above the consensus.Overall, SQ has a Moderate Buy rating from the analyst consensus. The reflects some caution on the stock, which has been underperforming the S&P 500 average, but also includes no less than 13 recent Buy ratings. Shares are trading at $67.84, and the $73.05 average price target implies a profitable, if unspectacular, upside of nearly 8%. (See Square stock analysis on TipRanks)
Square stock once had a great run. But the fintech's big investments have spooked some investors. Wall Street analysts are divided on it. Here's what could make Square stock a buy again.
(Bloomberg) -- Twitter Inc. Chief Executive Officer Jack Dorsey has picked a questionable time to spend as much as half a year in Africa.Dorsey wrote in a tweet last week that he planned live on the continent for between three and six months in 2020, news that was largely buried thanks to the Thanksgiving holiday. But investors quickly noted the Twitter chief’s plans will coincide with a presidential election year in the U.S., which is likely to be marked with growing debate over election meddling, online hate speech and the role of tech companies in public discourse.“There’s going to be a bright spotlight on Twitter, Facebook and a lot of other tech platforms,” said Dan Ives, an analyst at Wedbush Securities, adding that Dorsey’s absence from the country could provide fodder to Twitter’s critics. “If the CEO does this, any speed bump is over-magnified.”Dorsey made the announcement about his trip after spending most of the month of November in Africa, where he visited with entrepreneurs and completed a 10-day meditation retreat in South Africa. “Sad to be leaving the continent…for now,” he tweeted. “Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020. Grateful I was able to experience a small part.”The CEO’s trip, assuming it takes place, will happen as Twitter’s most high-profile user, President Donald Trump, runs a presidential campaign while simultaneously running the country on Dorsey’s platform. Inevitably Twitter will have to make tough, quick decisions, and it’s unclear how easy or efficient that will be with a chief executive halfway around the world for an extended period.Twitter’s corporate structure could also compound that problem. The CEO has no obvious No. 2 inside Twitter, and the chief operating officer role, often viewed as second in command, has been vacant since January 2018.But what’s bad news for Twitter could actually benefit the other publicly traded company that Dorsey leads, payments giant Square Inc. Dorsey, who has been CEO of both for four years, suggested that a trip to Africa would help him learn about cryptocurrencies, like Bitcoin -- a personal area of interest for the Dorsey, as well as a potentially big market for Square.Square was one of the first public companies to wade into cryptocurrencies, allowing users to buy and sell Bitcoin on its Cash App in 2017. Dorsey has long been an outspoken proponent of Bitcoin, even hiring a small team at Square to work on cryptocurrency-related projects. The trip could also bring Dorsey closer to Africa’s fast-growing fintech industry, which has been a bright spot for the continent in recent years.Like Twitter, however, Square also has no clear successor to the CEO. Its former CFO Sarah Friar, who had been widely considered to be the company’s No. 2, left to run the neighborhood social network Nextdoor.com Inc. in late 2018.“The key question will be whether Jack installs an interim chief operating officer or president in his absence,” said Lisa Ellis, an analyst at MoffettNathanson. “If he does, I believe the Africa sojourns could be a good thing strategically for Square. If he does not, he is putting the day-to-day operations of Square at risk.” Ellis added that she expects Square’s board will push on this point. Representatives for Square and Twitter declined to comment.The likeliest practical outcome to Dorsey’s globetrotting may be that he simply continues his job from the other side of the world. Inside Twitter, Dorsey and other executives have been promoting the concept of remote work, according to people at the company. Dorsey visited 27 Twitter offices around the world in 2019, and recently referred to remote work as “our future.”Dorsey has long been viewed as a CEO who takes on more projects than most. “Even though he’s kind of been superman as CEO of two public companies, and juggling a lot of balls at the same time, going to Africa for three to six months -- I don’t think that’s something from a shareholder perspective that’s viewed as ideal,” Ives said. Even for Dorsey, the Africa trip would be unusual. Adds Ives: “[In] twenty years covering tech on the street, I’ve never seen a CEO go on a three- to six-month journey to another continent.”To contact the reporters on this story: Kurt Wagner in San Francisco at email@example.com;Julie Verhage in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
There is now an infrastructure for cryptocurrency. But a lack of utility and the 2018 rout has dampened investor enthusiasm.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in […]
(Bloomberg) -- Robinhood Markets Inc. is pulling its application for a banking charter just months after starting the process, underscoring the challenges for startups trying to take on the highly regulated world of finance. The application, filed with the Office of the Comptroller of the Currency, would have allowed the no-fee stock trading company to offer banking products by itself. Right now, Robinhood would need to enter into partnerships with other banks to provide services like debit cards. A company spokesman said it has no plans to resubmit its application.“We are voluntarily withdrawing our OCC application for a national bank charter,” spokesman Dan Mahoney said in a statement. “Robinhood will continue to focus on increasing participation in the financial system and challenging the industry to better serve everyone.”Robinhood has been in regulators’ cross-hairs after a failed checking and savings product launch late in 2018, which it announced without lining up the requisite insurance or approvals. After scrapping the product following regulatory blowback, Robinhood announced a new variation in October, slated to be called Cash Management, but it has yet to officially launch.Robinhood is not the only fintech company to apply for a charter, and fail to win one. Social Finance Inc. eventually pulled its application and Jack Dorsey’s Square Inc. is still waiting to see if it’s granted approval. Without the charter, the startups typically must pair up with existing, licensed banks in order to offer bank-like services on their platforms, for example checking accounts and debit cards.CNBC earlier reported news of the withdrawal.To contact the reporter on this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Mark Milian at email@example.com, Anne VanderMey, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Despite all of its growth, PayPal (NASDAQ:PYPL) has a slight problem. It used to have the digital wallet and online payment market all to itself. But these days, PYPL is facing some pretty big competition from a variety of start-ups and even traditional banks. Getting its mojo back and fighting off that competition are its main concerns.That is why PayPal's acquisition of Honey is a pretty sweet deal for PayPal.While Honey may not be well-known to many investors, its user base is constantly growing and it fills an important niche in PayPal's ecosystem. That is, Honey, which enables its customers to find deals, will enable PayPal to interact with consumers before they process their payments, As a result, PayPal will be able to hook them in early and funnel them into its system.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Honey acquisition makes a ton of sense for PayPal stock because it will enable the company to fight off much of the competition that's now eating away at PYPL's market share and revenue, thereby undermining PYPL stock. In the end, PayPal's biggest acquisition to date is going to be one honey of a deal. * 7 Stocks to Buy in December PayPal's Growing ProblemsCompanies know they're doing well when everyone starts copying them and offering similar services. That's been the case for PayPal. It basically designed the online digital wallet and peer-to-peer payment markets. That first-mover status has been wonderful for PayPal's bottom line for years now. Perhaps it's been too good.These days, competition runs deep in the digital payment space. Companies like Stripes and Square (NYSE:SQ) have moved into payment processing and peer-to-peer payments, while companies like Apple (NASDAQ:AAPL) have built digital wallets directly into their hardware.And threats continue to mount for PayPal stock.Social media giant Facebook (NASDAQ:FB) recently unveiled its new Facebook Pay application. Facebook Pay allows users to directly pay individuals and businesses across FB's entire ecosystem.Facebook users who see something they like on Facebook Marketplace can now instantly buy it from a seller. And with Instagram now basically becoming a shopping app, integrating direct payments eliminates a step in the buying process.All of this is a huge problem for PYPL stock, as PayPal was traditionally the facilitator of all of these transactions. And while its revenues and volumes haven't been hurt just yet, some cracks in PayPal's armor are starting to emerge. For example, on Apple's last conference call, Apple CEO Tim Cook mentioned that the number of Apple Pay transactions exceeded PayPal's and that Apple Pay was growing nearly four times as fast as PayPal. Honey to The RescueWith mobile payments being such a huge part of its current and future revenues, PayPal had to do something to keep its leadership position entrenched. So, it turned to a relatively unknown start-up , Honey,to do just that.Honey's basic M.O. is helping consumers save money on various e-commerce transactions. It offers a suite of price-tracking tools, coupon codes and a rewards program called Honey Gold. The rewards program provides cash back to Honey's users. All of that is done via mobile devices, the traditional web or automatically through a Chrome browser extension.Here's where it gets interesting for PayPal. By buying Honey, PYPL can basically move ahead of the line and into the deal discovery stage of shopping. And once consumers find those deals, their default choice for paying for them will be PayPal's system.That could be particularly lucrative for PayPal, since a main feature of Honey's mobile app allows consumers to load a shopping cart with multiple retailers' items and pay for them all at once. By using PayPal's OneTouch authorization or its Venmo payment system, consumers would be able to pay for the products offered by Honey very easily.On the flip side, Honey will help PayPal's merchant partners as well. Those 24 million merchants now will have the ability to publicize targeted, more personalized promotions and incentives to Honey's users, enabling the businesses to attract more consumers. That could be a great way to increase their sales. Meanwhile, PayPal will get a cut of both the advertising/promotion charge and the payment processing fees.And when looking at PayPal's user base of nearly 300 million, the acquisition makes a ton of sense. Right now, Honey has only 17 million users. By increasing its size and making it available to all PYPL users, PayPal will create a cycle of more deals,higher payment volumes and continued growth for itself.Most importantly, Honey gives PayPal an edge over its rivals and creates an enclosed shopping ecosystem and a huge competitive advantage that will help it prevent further market share losses. The Honey Acquisition Will Be Great for PayPal StockLooking at the digital payment environment, one thing is clear: Every firm is trying to offer a closed system that locks in users. By buying Honey, PayPal is now essentially doing that. Honey's app will allow PYPL to jump into the front of the line, hook consumers in with deals, facilitate payments and reward them for their shopping. That will keep them coming back for more discounts and keep them in PayPal's system.For the owners of PayPal stock, that is wonderful news because the deal will help PYPL fight some of the rising competition that it now faces.Ultimately, the $4 billion price tag may seem like a drop in the bucket over the long haul as Honey is integrated and the cycle gets cooking. So the deal gives investors a new reason to be bullish on PayPal stock.At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy in December * 7 Unsteady Stocks Investors Should Consider Selling Before 2020 * 7 Entertainment Stocks to Buy to Escape Holiday Blues The post PayPalas Sweet Deal Will Lift PayPal Stock appeared first on InvestorPlace.
U.S. stocks once again closed at an all-time high on Tuesday. As has been the case for most of the past few months, the gains weren't exactly torrid, with the three major indices increasing roughly two-tenths of a percentage point. Still, optimism reigns heading into the holidays.Source: Shutterstock But not every stock has joined in the rally. Wednesday's big stock charts highlight three of those names. All three sit well off 52-week highs, and actually have weakened in recent months while the rest of the market has gained. * 7 Stocks to Buy in December A reversal isn't guaranteed, or necessarily likely, for each of these stocks. But should positive market sentiment hold, they could be targets for investors looking for value in an increasingly expensive market. At the very least, these big stock charts suggest potentially big moves at the end of the year and into 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips PayPal Holdings (PYPL)Source: Provided by Finviz One curious aspect of the recent rally is that payment stocks like PayPal (NASDAQ:PYPL) have been mostly left out. But that may change. The first of Wednesday's big stock charts shows a recent bounce that sets up a potential breakout: * PYPL stock has exited its downtrend and made a bullish reversal out of a descending narrowing wedge. The 20- and 50-day moving averages have been cleared. And volume has picked up in recent sessions. The 200-day moving average is the last potential source of resistance to a breakout; that aside, the chart here looks exceedingly bullish from a near-term standpoint. * Again, PYPL stock hasn't been alone in underperforming. Payment stocks have been among the market's best the last few years: PayPal stock, for instance, has nearly tripled in the last five years. More recent trading has been softer. Visa (NYSE:V) and Mastercard (NYSE:MA) have traded sideways for the past few months. Square (NYSE:SQ) bounced along its lows. There are signs of life, however. SQ stock has rallied and MA stock is challenging all-time highs reached in early September. * It wouldn't be surprising to see PYPL stock (and potentially V stock) follow those peers. The sector should in theory do well in a bull market, as it has for the past decade. A 30x forward earnings multiple for PayPal stock isn't cheap, but it's reasonable in the context of the 14% profit growth expected next year. Certainly, there are stocks posting lower growth with higher multiples, as Tuesday's big stock charts showed. In that context, the case for a breakout in PYPL looks even stronger. Macy's (M)Source: Provided by Finviz Intrepid investors have been willing to step into the steep decline in Macy's (NYSE:M) stock in recent months. Support has held on several occasions above $14. M stock has rallied in recent sessions after selling off last week following disappointing earnings from rival Kohl's (NYSE:KSS) and its own subpar third quarter release. But the second of Wednesday's big stock charts shows that support is getting weaker: * The multiple bottom in M stock usually would be considered bullish, as support has held repeatedly. But the lower highs create a descending triangle, which creates an increased risk that Macy's stock will break through that support. The long-term chart is even weaker, showing a steady and concerning pattern of lower highs and lower lows, at least until the last few months. * To be sure, Macy's stock seems almost absurdly cheap, at less than 6x this year's consensus earnings per share estimate. A nearly 10% dividend yield seems to add to the value case. But Q3 earnings were notably weak, and included the company's second guidance cut this year. Commentary on the Q3 earnings call seemed to imply that the payout could be cut. If earnings are headed for a permanent decline, even a multiple under 6x isn't cheap enough. After all, Macy's stock has looked cheap for years, but touched a post-crisis low in August. * And so the case for M stock seems to come down to its real estate. A partnership with Brookfield Asset Management (NYSE:BAM) sparked optimism earlier this year. Hedge fund Starboard Value pushed for real estate joint ventures in early 2016 before exiting its position the following year. If investors see value in the real estate, have trust in management, and stay as bullish as they've been of late, perhaps M stock finally can rally. That does seem like quite a few 'ifs,' however. Iron Mountain (IRM)Source: Provided by Finviz Fundamentally, data storage real estate investment trust Iron Mountain (NYSE:IRM) looks like a steal. 2019 guidance for adjusted funds from operations (AFFO), a common measurement of REIT profits, suggests a roughly 11x P/AFFO multiple. A 7.5% dividend yield looks attractive as well.But the third of our big stock charts does suggest near-term weakness, and looking closer there are fundamental concerns: * Tuesday's decline pushes the stock out of an ascending narrowing wedge -- a classically bearish signal. IRM stock also broke through its moving averages, which leaves little in the way of near-term support. With resistance holding at $34, there's not much case for jumping in just yet. * Fundamentally, it's true that IRM stock is cheap. But there are real risks here. Increasing digital storage limits the demand for Iron Mountain's services. A plan to pivot to data centers has moved slower than hoped. Ian Bezek last month called IRM stock a potential dividend trap, and he makes a good case. * And so there's clear downside risk. A bull market might give IRM stock a reprieve, and better news on the data center front could change the narrative. Still, at the very least, investors might want to wait for a better entry point.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy in December * 7 Unsteady Stocks Investors Should Consider Selling Before 2020 * 7 Entertainment Stocks to Buy to Escape Holiday Blues The post 3 Big Stock Charts for Wednesday: PayPal, Macy's, and Iron Mountain appeared first on InvestorPlace.
Why did bitcoin's price drop this month? Can you pass the turkey? Quartz answers all the questions your family will ask about cryptocurrency during Thanksgiving weekend.
There are now more than 80 million Millennials, born between 1982 and 2000 and ranging in age from their early 20s to their late-30s. This generation is the largest in history – bigger than even the Baby Boomers. According to our research, Millennials currently account for 24% of total U.S income – some $2.9 trillion in direct annual purchasing power, mostly representing older Millennials established in their work and families. The intersection of several trends – sustainability, healthier living, and an entrepreneurial spirit – has resulted in the emergence and growth of numerous companies well-suited to the millennial generation. The Argus Millennial Generation portfolio consists of 30 stocks that fit many of these themes.
The awareness of the Cash App relative to competitors, particularly PayPal Holdings Inc's (NASDAQ: PYPL) Venmo, is growing, according to what people are searching for on the internet, Dolev said. The bullish coverage follows strong gross payment volume growth in the third quarter and rising sales and marketing efficiency, which contribute to the positive outlook.
The trend of financial technology roll-ups that hit credit card processors is now hitting brokers, as Charles Schwab (NYSE:SCHW) makes a bid for TD Ameritrade (NASDAQ:AMTD).Source: Isabelle OHara / Shutterstock.com The bid, for a reported $26 billion, sent TD Ameritrade shares up 17%, slightly over the bid price. It means Schwab itself, with a market capitalization of $61.7 billion, could be in the crosshairs.The catalyst is said to be Schwab's move to eliminate commissions on common stock trades. The October decision sent TD Ameritrade stock down by nearly one-third. The bid price is near where AMTD stood prior to slashing commissions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the Schwab bid didn't come out of the blue. It was prompted by competition from a smaller fintech, Robinhood. It launched no-fee trading in 2013 and was valued at $7.6 billion in its latest funding round. The Debt, The Debt, The DebtThe problem for Charles Schwab and for all brokers is technology debt, the same force driving credit card processors together to compete with Square (NYSE:SQ).Once a technological solution is put in place, a company immediately starts accumulating technology debt, as new and cheaper solutions become possible. Robinhood is built on the Amazon (NASDAQ:AMZN) AWS cloud, while older brokerages were built on mainframes.Assuming the deal gets done, Schwab and Ameritrade face the task of integrating disparate hardware operations, software teams and tools. Only their larger scales will let them do this. Schwab has also been gearing up to allow the purchase of fractional shares, which is expected to be a challenge to the mutual fund industry.Schwab's elimination of trading fees brought it 142,000 new accounts in October alone. Another big surge is expected early next year, when Schwab takes on 11 million brokerage accounts from USAA, a privately owned organization. That deal also brings $7 billion of cash on which Schwab will pay much less than USAA was offering. It's small spreads on cash balances, and other fees earned from just handling money, that make up for the elimination of commissions. Should You Buy Schwab Stock?Schwab was founded in 1971 and TD Ameritrade four years later. Schwab spent a reported $313 million in advertising last year. TD Ameritrade was reported to be spending $62 million per quarter on ads three years ago. Together they probably represent $2 billion in ad billings. Some of that money, along with management savings, can help offset system integration costs.Schwab brings in $10 billion of revenue each year and Ameritrade about $5.8 billion. Together they reported net income of $5.8 billion last year. This may be why Schwab stock also popped, by over 7%, once its bid was announced. E*Trade (NASDAQ:ETFC), on the other hand, dropped by 9%.Consolidation could continue if larger financial players decide to come in. The big banks, Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C), all do brokerage, and their systems are now as automated as the discounters. The merger mania, in other words, may have just begun. The Bottom Line on Charles Schwab and TD AmeritradeThe cost of bringing financial transaction processing from the mainframe era into the cloud era is enormous. For companies to survive, they must do it at scale, so the costs are spread out across giant balances and transaction volumes.That's why the rise of fintech has caused a merger mania across the financial landscape. Robinhood has been trying to obtain a bank charter, but various technology missteps have so far kept it out.Once it does get such a charter, expect banks to start merging the way the credit card processors and brokerages are.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in SCHW, AMZN and JPM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post What the Fintech Merger Mania Means for Charles Schwab Stock appeared first on InvestorPlace.
After falling sharply in early August and into September, Square (NYSE:SQ) stock has made a slight rebound. Shares have climbed above the $60 price level, and closed yesterday at $67.42 a share. As SQ stock inches closer to the $70 price level, is now the time to buy?Source: Shutterstock Maybe not. True, the company's Nov. 6 earning releasecame in better than expected. But with shares trading at a rich valuation and competitors stepping up their game, it's important to note that Square stock is rife with risks. However, with last summer's beat-down of the share price, upside is also a possibility.Let's take a closer look, and see why all bets are off with SQ stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Square Stock is Starting to Feel RivalsFor the quarter ending Sept. 30, 2019, SQ sales were up 44% year-over-year, to $1.27 billion. But, this was only a slight boost from the prior quarter ($1.17 billion). Adjusted EBITDA came in at $131 million, up 85% from the prior year's quarter. Square reported adjusted revenue figures, but after an SEC comment letter, will discontinue using this non-GAAP metric. That adjusted revenue number consisted of revenue net of transaction and bitcoin expenses. The company used this figure to make it easier to compare results to peers. * 5 Lottery Stocks With Triple-Digit Upside The company's Seller Ecosystem continues to grow, albeit at a slower clip. Sales were up 27% YoY. Square built its reputation by offering a seamless payment platform for small businesses. But now, other major payment players are looking to offer compelling alternatives to Square's Seller Ecosystem products.Fiserv's (NASDAQ:FISV) Clover Payment System is an example. With increased competition, Square's sales and marketing costs are projected to rise 48% this year. As a result, this competitive pressure could hurt margins, and make it tougher for Square stock to deliver prior rates of growth.But on the business-to-customer (B2C) side, SQ stock may have a catalyst in play. Square's growth driver this quarter was the Cash App platform. Cash App revenue grew 115% year-over-year, to $123 million. But Cash App also faces heavy competition from deep-pocketed peers. PayPal's (NASDAQ:PYPL) Venmo is Cash App's main competitor. Facebook's (NASDAQ:FB) recent launch of its Facebook Pay application could also impact Cash App's growth.Analysts are mixed whether Facebook Pay is a threat. RBC analyst Dan Perlin sees it as a negative for PayPal and Square stock. But MoffettNathanson analyst Lisa Ellis views it differently, seeing Facebook Pay as a facilitator of e-commerce, rather than a "neobank" like Cash App. SQ Stock Remains Richly Priced to Payment Processing PeersThe jury's out whether the emerging competition will hinder SQ sales growth. Analysts project sales of $2.85 billion in 2020, up from $2.24 billion in 2019. That means approximately 27% growth for the coming year.High growth is required to justify the valuation of Square stock. Shares continue to trade at a substantial premium to peers. Square's forward non-GAAP price-to-earnings ratio (non-GAAP forward P/E ratio) is 86.1. In contrast, competitor PayPal has a forward non-GAAP P/E ratio of 34.1. Square's EV/EBITDA ratio is a staggering 360.7, compared to just 36.2 for PayPal.Looking at traditional payment processors, the valuation premium for Square stock is more substantial. Visa (NYSE:V) trades at 29.2x forward non-GAAP earnings. Its EV/EBITDA ratio is 25.5. Mastercard (NYSE:MA) trades for 37.1x forward earnings, and has an EV/EBITDA ratio of 30. Stay on the Square Stock SidelinesEven with challenges to its business, Square stock remains overvalued. While the company's growth somewhat justifies a high valuation, compared to peers the stock is irrationally priced. * 9 Tantalizing Dividend Stocks for 2020 How long can SQ stock trade at such a premium? I see one of two things happening to the shares in the coming months. Either the company takes another dive on missed expectations and greater competition. Or shares remain stagnant, as the company attempts to "grow into its valuation".Either way, there's limited upside with SQ stock. But the company could surprise me. The success of Cash App shows Square can move from one success to another. Perhaps the company can innovate again, create another next-level financial service the moves the needle. Cash App is making big moves into commission-free trading, startup Robinhood's turf.It's tough to predict whether Square can parlay its payments processing success into becoming a fintech financial supermarket. But at the current valuation, I'm not willing to take that risk. All bets are off where Square stock will trade in 2020. Therefore, I prefer to stay on the sidelines.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 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post All Bets Are Off With Square Stock as Rivals Heat Up Payments Competition appeared first on InvestorPlace.
Square, Inc., (SQ) in partnership with the National Christmas Tree Association, released a Christmas Tree Calculator and data report, based on Square sales from thousands of Christmas tree farmers and sellers across the country. Using price fluctuations throughout the holiday season, the calculator helps consumers strategically select the best day to buy their tree, based on their region, how long they plan to keep it, and desired budget. According to Square sales data, the report shows that Christmas tree prices increased 23% from 2015 to 2018, with the average price rising from $62 to $76.