|Bid||69.35 x 800|
|Ask||69.38 x 900|
|Day's Range||69.19 - 70.30|
|52 Week Range||54.41 - 83.20|
|Beta (5Y Monthly)||3.29|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 24, 2020 - Mar 01, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||73.33|
Musk (TSLA)has more than 30 million followers on Twitter, where he has stirred plenty of controversy of his own over the past few years. Dorsey spoke to Musk via a video call from a company meeting in Houston with Twitter employees watching.
When the U.S. launched a missile strike that killed top Iranian general Qasem Soleimani, people around the world freaked out, claiming that this was the beginning of World War III. Investors freaked out, too, and markets around the globe tumbled the day after the missile strike.But my reaction to the missile strike was completely the opposite -- I saw it as a big plus for the U.S. stock market, and an even bigger plus for growth stocks.No matter which way you slice it, higher interest rates are the number one enemy of the stock market and the economy. Long story short, after a decade of next-to-zero interest rates, the market and economy have become addicted to and heavily dependent upon those low interest rates. A hike in interest rates would put tremendous pressure on companies' heavily-levered balance sheets and stocks' aggressively extended valuations. But, so long as interest rates remain low and a cataclysmic Black Swan event doesn't emerge, the economy and stocks will continue to push higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom this perspective, the U.S. missile strike on Iran is exactly what the stock market needed to head higher in 2020. This event sustains the Goldilocks global economy which propelled stocks way higher in 2019. That is, it creates enough worry to keep investors on their toes and keep interest rates depressed. But it doesn't create enough worry to meaningfully slow economic activity globally. * The Top 15 Stocks to Buy in 2020 That's a great combination which means that growth stocks -- which are big winners in low rate environments -- will head doubly higher. With that in mind, let's take a look at five growth stocks to buy as the Goldilocks economy persists. The Trade Desk (TTD)Source: Shutterstock/ Bella Melo Programmatic advertising leader The Trade Desk (NASDAQ:TTD) has been one of the best-performing growth stocks in recent memory. Over the past three years, TTD stock is up more than 900%, as the company has become a bigger and more important player in the global digital ad landscape.Long story short, programmatic advertising has turned into the future of digital advertising. As opposed to leveraging humans and guess-and-check processes to run ad campaigns, advertisers around the world are increasingly automating ad transaction processes using data and algorithms. This programmatic advertising pivot will persist in 2020, as automation tech gains more traction and digital ad spending trends remain strong.As it does, The Trade Desk -- which is widely considered the world's best and most robust demand-side programmatic ad platform -- will continue to attract more clients and grow ad spend per client. Revenue growth trends will remain robust. Profit margins will improve with scale as the company relies more on ad spend per client growth, and less on marketing spend. Profits will continue to roar higher.At this point, it seems like the only thing that can stop TTD stock is valuation friction. Indeed, up at almost 75-times forward earnings, TTD stock does seem richly valued.But low interest rates support this extended valuation. So long as interest rates remain low and the company maintains growth momentum, TTD stock will push higher. Both of those things will happen in 2020. As such, the big multi-year rally in TTD stock won't end this year. Beyond Meat (BYND)Source: calimedia / Shutterstock.com During the first half of 2019, plant-based meat maker Beyond Meat (NASDAQ:BYND) was one of the market's best performing growth stocks. During the second half, it was one of the market's worst performing growth stocks. In 2020, BYND stock appears well positioned to regain the winning streak it had during the first half of 2019.As Bill Gates once said, people tend to overestimate what can be accomplished in a year, and underestimate what can be accomplished in a decade. Beyond Meat is a living illustration of this. In 2019, everyone expected Beyond Meat and the plant-based meat trend to take over the world right away. Investors overestimated how much the company could accomplish in a year. The stock price reflected this, and as the company delivered numbers that were below expectations, the stock collapsed.Now, on the heels of this stock price collapse, investors are underestimating how much the company can accomplish over the next decade. During that stretch, plant-based meat will become the norm, thanks to health, cost, and resource conservation advantages. Beyond Meat will maintain its status as "the brand name" in the plant-based space. The company will turn into a global meats giant worth tens of billions of dollars. * 7 Stocks That Are Screaming Buys Right Now The Beyond Meat stock price today does not reflect this reality. Consequently, the company will deliver numbers in 2020 and beyond that exceed expectations. As it does, the stock will rebound from this big sell-off, especially against the back-drop of low interest rates. Square (SQ)Source: Jonathan Weiss / Shutterstock.com The 2020 bull thesis on payments processor Square (NYSE:SQ) boils down to four components.First, Square is a growth stock with a growth valuation. Interest rates project to remain low in 2020, and therefore project to remain supportive of growth stocks and growth valuations. Sustained low rates will consequently provide support for SQ stock over the next few months.Second, Square's adjusted revenue growth rates will stabilize and potentially even improve in 2020, thanks to rebounding economic activity, which should lead to upped consumer spending and heavier spend through the Square ecosystem. At the same time, new product launches like Cash App will continue to gain meaningful traction in this healthy consumer spending environment, providing more lift to Square's adjusted revenue growth rates. That's important, because when Square's adjusted revenue growth trajectory is improving, SQ stock tends to do very well.Third, Square's profit margins will continue to improve because the company's higher-margin services businesses will become bigger revenue contributors in 2020, thereby putting upward pressure on gross margins. Sustained big revenue growth should also drive bigger positive operating leverage.Fourth, at 72-times forward earnings for 30%-plus revenue growth and even bigger profit growth, SQ stock is one of the more attractively valued growth stocks in the market. Thus, favorable fundamental developments coupled with low rates have the potential to push SQ stock meaningfully higher from today's relatively depressed base. Canopy Growth (CGC)Source: Shutterstock Pot stocks had a rough go in 2019. Pot stock poster child Canopy Growth (NYSE:CGC) was no exception. Shares presently trade more than 60% off their early 2019 highs. But the whole cannabis sector -- led by CGC -- could stage a big rebound in 2020.The rebound thesis on CGC stock is fairly straightforward. All the things that went wrong for Canopy Growth in 2019 will go right in 2020. Falling revenue growth rates will turn into rising revenue growth rates, as demand trends in Canada stabilize thanks to the introduction of vapes and edibles products into the legal market, as well as more aggressive retail store expansion.Compressing margins will turn into expanding margins, as black market pricing pressures ease with improving demand trends and as the pace of production capacity expansion slows. Snail-like progress on the U.S. legislation front will pick up speed in 2020 as the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act makes its way through Washington.Canopy's 2019 headwinds will turn into 2020 tailwinds. Those 2020 tailwinds will converge on what has become a hugely depressed CGC stock with a record low valuation, to spark a big rebound in shares. * 10 2019 Winners That Will Be 2020 Losers Of course, low interest rates won't hurt, either. Canopy Growth -- like all pot stocks -- is still richly valued relative to the rest of the market. Low interest rates will help provide support for this extended valuation, especially as the growth narrative regains momentum. Snap (SNAP)Source: Ink Drop / Shutterstock.com Digital ad stocks are positioned to have a strong 2020, because the strength of ad market is closely tied to the strength of the overall economy (i.e. when the economy is firing on all cylinders, companies are more comfortable spending big on advertising). As such, the likes of Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOG), Pinterest (NYSE:PINS), and others will move higher in 2020.One digital ad stock which could out-perform peers in a big way in 2020 is Snap (NYSE:SNAP). Snap has been untouched by political ad scandals. By contrast, Facebook and Alphabet are feeling huge pressure to more strictly censor and even ban political ads in 2020. That means these companies are operating with their hands tied behind their backs. Snap isn't. That puts the company in a strong position to win a ton of political ad dollars this year.Second, Snap's newest product innovation, Cameos, looks very similar to the face swap filter of early 2019. That face swap filter was a big driver behind the platform's impressive user growth in early 2019, which drove huge gains in SNAP stock. The same thing could happen in early 2020. Cameos could power above-consensus user growth, which could spark another leg higher in SNAP stock.Third, Snap's profit margin profile will continue to meaningfully improve in 2020 as gross margins move higher alongside more favorable ad demand trends, and as sustained big revenue growth drives positive operating leverage.Connecting all the dots, it seems clear that Snap stock will regain its early 2019 momentum in early 2020, and sustain that momentum for most of the year.As of this writing, Luke Lango was long TTD, BYND, SQ, CGC, FB, and PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post 5 Growth Stocks to Buy for 2020 appeared first on InvestorPlace.
The major stock indexes were modestly higher despite a weaker-than-expected December jobs report. Square received another upgrade Friday.
It suddenly looks like U.S. stocks are back on track. Tensions in the Middle East have eased and U.S. stocks -- again -- have reached new highs.Source: Shutterstock Short of a stunning disappointment in Friday's jobs report, there seems little that can slow this market down. That would be particularly good news for Friday's three big stock charts. * 8 of the Strangest Stocks Worth Your Time All three stocks have a reasonable amount of correlation to macroeconomic and market sentiment. All three big stock charts show real potential for a significant near-term move. With a little bit of external help, those moves could go in the right direction.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Square (SQ)Source: Provided by Finviz Right now, Square (NYSE:SQ) looks like it's at the beginning of a breakout. The one big concern with the first of Friday's big stock charts is that we have been here before: * There's a lot to like here technically. Shares have bounced off support at a key level that presented resistance just a couple of months ago. A nice gain Thursday cleared the 200-day moving average. Continued strength could drive a bullish "golden cross" in which the 50-day moving average reverts above that 200-day average. To top it all off, SQ stock exited a triangle pattern and held that gain on Thursday. * But there are concerns. Technically, again, we've been here before. SQ looked set for a breakout in November before fading at the 200DMA. A summer rally was undercut by a disappointing second quarter earnings report. The chart looks positive, but there's still the chance of a reversal. * Fundamentally, the news looks more mixed, as highlighted by a Wall Street upgrade this week. SQ stock isn't cheap at over 60x forward earnings. And competition from the likes of PayPal Holdings (NASDAQ:PYPL) and Shopify (NYSE:SHOP) is a concern. On the other hand, there simply aren't any cheap growth stocks left in this market -- and initial guidance for organic revenue growth over 30% in 2020 suggests Square is managing its competitive environment just fine. Square stock has been left out of the market rally for months now, but there's a case that underperformance simply can't last forever. American Airlines (AAL)Source: Provided by Finviz The same could be said of American Airlines (NYSE:AAL). The economy is growing. Global demand for air travel should continue to rise. The airline industry in the U.S. has stopped its destructive pattern of pricing wars. Yet AAL stock remains one of the market's cheapest stocks, and the second of Friday's big stock charts doesn't yet look bullish: * There's a lot to unpack here technically, but it does seem a bit too early to call for a breakout. There has been a decent uptrend from August lows, but a triangle pattern here suggests the market still hasn't made up its mind. With moving averages still potential resistance, there's a chance of a reversal back toward October or even late August lows. * Fundamentally, the case seems more positive. Again, AAL stock is one of the market's most inexpensive names. A 5.3x forward price-to-earnings multiple is the 3rd-lowest in the S&P 500. Among components on that index, only Mylan (NYSE:MYL), which is dealing with debt and secular pressure on its generic business, and insurer Unum Group (NYSE:UNM), which faces significant potential long-term liabilities in its long-term care business, are cheaper on the same basis. AAL has cyclical risk and is managing through the 737 MAX situation at supplier Boeing (NYSE:BA), but does not face any such existential crisis. * In that context, AAL stock seems simply too cheap. But "too cheap" has been a dangerous phrase in a market that has preferred growth to value, and the chart at the very least suggests investors can stay patient before buyers pile in. Kinder Morgan (KMI)Source: Provided by Finviz Pipeline operator Kinder Morgan (NYSE:KMI) seems to have had its breakout already, with shares bouncing sharply amid optimism toward energy stocks. But the rally in the third of Friday's big stock charts may not be done: * After the gains of the past few weeks, it's tempting to argue that the easy money has been made. But KMI stock only has gained about 13% -- not necessarily an enormous gain for a leveraged energy play, even if pipelines are a more defensive business than exploration and production. Meanwhile, the stock saw a golden cross this week, and at a 30-month high resistance may have been cleared. This rally may well have more room to run. * Fundamentally, KMI stock is intriguing as well. A 4.6% dividend yield is attractive on its own. But Kinder Morgan already has announced that it will increase its payout 25% in 2020. That puts the forward yield above 6%, and represents another step in the company's effort to repair the damage done amid a disastrous dividend cut back in 2015. * That said, there's still work to do in regaining trust and driving growth. The recent bout of optimism toward U.S. energy might not last, particularly with the geopolitical environment (hopefully) returning to normal. Some investors may still have a "once bitten, twice shy" attitude toward KMI stock. And there are pipeline operators available at similar yields and multiples -- and some of those stocks aren't at resistance. I do like KMI here, but as always investors need to keep the potential risks in mind.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post 3 Big Stock Charts for Friday: Square, American Airlines, and Kinder Morgan appeared first on InvestorPlace.
"I do not believe the introduction of motorcars will ever affect the riding of horses."That's what John Douglas-Scott-Montagu, a member of the British Parliament, declared in 1903. That may sound absurd now, but it was the accepted wisdom of the time.Just five years later, Henry Ford was mass-producing Model Ts. And within one decade, 10 million Americans were puttering around in motorcars.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAutomobiles aren't alone. Breakthrough technologies often become commonplace necessities more rapidly than anyone can imagine at the outset.The electric vehicle (EV) will be no different. This breakthrough technology will gain global popularity and market share much more rapidly than most folks expect.Likewise, the energy storage technologies needed to make electric vehicles and other technologies possible will fan out across the globe at a spectacular pace.These burgeoning technologies are the seeds of what I'm calling "The Second Electric Revolution." These innovations are quickly becoming world-altering phenomena -- the likes of which the planet has not seen since Thomas Edison demonstrated his new electric streetlights in 1879. * The 7 Most Important Companies That Didn't Survive the 2010s I expect the Second Electric Revolution to introduce sweeping technological advancements that will impact our daily lives in ways we can't yet comprehend.Already, electric vehicles are stealing market share from gas-fired vehicles, while renewable power technologies are grabbing market share from thermoelectric power generation thanks to utility-scale energy storage systems.Both of these stories are very new and very big.We've seen this movie before … From Flip to SmartIn 2006, cell phones were still nothing more than mobile telephones.Nokia Corp. (NYSE:NOK) and Motorola Solutions Inc. (NYSE:MSI) dominated the market with compact flip phones. Smaller was better. Each new cell phone design offered slightly better functionality than the preceding version, but at a lower weight and smaller size.If someone had asked you or me back then what a cell phone would look like in 2020, we probably would have said it would be the size of a postage stamp, weigh about two ounces, and be clipped to our ear. We could not have guessed that cell phones would increase in size and offer the functionality of a laptop computer.And if someone had asked us back then if Apple Inc. (NASDAQ:AAPL) stock was a better "buy" than Motorola or Nokia, we might have answered, "No way!"That would have been a bad call.The flip phone was about to perish, and the smartphone was about to burst onto the scene.In January 2007, Steve Jobs announced the launch of the iPhone - and the world of mobile communication entered an entirely new paradigm.Globally, consumers bought about 122 million smartphones in 2007. In 2019, they bought 13 times that number.This story of breakthrough technological success has repeated itself over and over in history, especially here in the United States during the last century. Technological marvels like radios, televisions, washing machines, microwave ovens, and personal computers gained widespread acceptance at a lightning-fast pace.Now, as we enter a whole new decade, five new technologies are growing so rapidly and profitably that they deserve the attention of every investor.These five technologies are not merely delivering conspicuously strong revenue and earnings growth. Their growth trajectories are gaining momentum.I believe these are the five technologies that will make investors rich in 2020. Solar-Plus-Energy StorageSolar power is no longer a profitless curiosity -- it is a profitable industry that is attracting robust global demand. It is an idea whose time has come … especially for investors. According to the International Energy Agency (IEA), solar-power capacity will soar 13-fold by 2040, at which point this renewable source would be providing two-thirds of the world's power needs. Moreover, the IEA anticipates global spending on solar power to total $4 trillion over the next two decades - or about $180 billion per year. If investment of this magnitude were to occur, solar power would become the world's primary electricity source by 2040. Payment ProcessingDigital and card payments are the future. Gone are the days of cash and coins, and here are the days of credit cards and e-payments. As an enabler of noncash payments across multiple channels, Square Inc. (NYSE:SQ) is at the core of this transition. Its mobile devices, which attach to a smartphone, allow retailers of all shapes and sizes to affordably and easily process card payments. It has an online presence through software that does the same thing for e-payments. Square soared as much as 1,000% after its 2015 initial public offering - and is still up more than 400% from its IPO price. There's another stock in this same space about to take off on a similarly profitable path, and you can bet it's on my radar. Online GamblingThanks to a 2018 U.S. Supreme Court ruling, sports betting is no longer illegal on the federal level. It's now up to each state to decide if, how, and when sports betting operates within its borders. That means each of the 50 state legislatures and/or gaming authorities will determine the rules for its own state. By the end of 2020, analysts believe that more than half the states in the union will approve sports betting in some form - and up to 40 states by the end of 2024. Therefore, it is clear that a significant opportunity is developing. Estimates range from $150 billion to $400 billion in annual transactions, up from essentially $0 just a couple of years ago. Artificial IntelligenceA recent study by Accenture found that in 12 advanced economies with combined GDPs of roughly $61 trillion, artificial intelligence (AI) can double economic growth by 2035. That's leading to a whole lot of spending - and opportunities to make money - on AI technologies. IDC expected worldwide spending on AI systems to climb 44% in 2019 to $35.8 billion, with some $13.5 billion going to AI software platforms and AI apps. No wonder AI has quickly become red-hot. After all, the market opportunity is massive. Gartner estimates that spending on AI will grow at an average compound annual growth rate of 18%, reaching $383.5 billion in 2020. Battery MetalsToday's high-tech batteries require huge amounts of metals like lithium, cobalt, copper, nickel, graphite and vanadium. The average battery-powered electric vehicle requires 183 pounds of copper. That's about four times the amount of copper the average internal combustion auto contains. A typical EV also requires about 120 pounds of graphite, along with significant quantities of nickel, cobalt, and lithium. The average solar project requires about five times as much copper per megawatt of capacity as a conventional fossil fuel plant. Offshore wind farms demand about 10 times as much. Meanwhile, the leading energy storage technologies also require massive quantities of "battery metals." So the boom in EVs, renewables, and energy storage will create major "echo booms" in several metal markets.These five megatrends will be booming for a very long time.And so will five stocks I've spotted that investors can use to build their wealth as these tech trends soar.I profile all five of these companies in a brand-new free report -- Top 5 Stocks for 2020.In this free report, I show you how and why these five stocks will grow so rapidly in 2020 … and beyond.They deserve the attention of every investor.To get that report - and to become a founding member of Smart Money, my brand-new free weekly newsletter - click here.Regards,Eric FryP.S. Eric is now revealing his Top 5 Stocks for 2020 -all in a single special report -- for FREE! Click here to get this FREE report - and to become a founding member of Smart Money, Eric's brand-new FREE weekly newsletter. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post 5 Megatrends That Portend Tomorrow's World appeared first on InvestorPlace.
As stock performances go, PayPal's (NASDAQ:PYPL) gains in 2019 were probably a disappointment for shareholders.Source: JHVEPhoto / Shutterstock.com Normally, a 29% return on any stock, let alone one of the world's leading payment processors, would be considered a success.But 2019 wasn't just any year. The S&P 500 delivered its second-best performance of the decade, up 28.9%. Furthermore, while PayPal stock gained almost 30%, it lagged the S&P 500 Data Processing & Outsourced Services Index by 15 percentage points.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn 2020, with expectations much lower for the S&P 500 and markets in general, if PYPL were to deliver a repeat performance, the stock price would close the year around $140.Here are three things PayPal needs to do in the next 12 months to ensure PYPL stock hits $140. Partnerships Have to Reap RewardsOn Dec. 30, PayPal CEO Dan Schulman announced the company was expanding its partnership with Latin America's biggest e-commerce marketplace, Mercadolibre (NASDAQ:MELI), a stock I've long favored. * 8 of the Strangest Stocks Worth Your Time In March 2019, as part of a $1.8 billion equity offering by Mercadolibre to expand and grow its e-commerce business, PayPal invested $750 million in the Argentinian company. "Digital commerce in Latin America is experiencing tremendous growth and MercadoLibre is well-positioned for continued leadership," Schulman said at the time. "We've been impressed with the digital commerce and payments ecosystem Marcos [Galperin, MELI CEO] and his team have built."However, that was just an investment.2019's end-of-the-year announcement expands the relationship to include PayPal as a payment option for online checkout via Mercado Pago in Brazil and Mexico. In addition, PayPal will be accepted in the MercadoLibre marketplace in Brazil and Mexico for cross-border purchases.As a result, PayPal's 300 million customers can now use the payment processor to buy stuff online in two of Latin America's largest commercial markets.I said in November that if you could afford to buy both PYPL and MELI, you should. Based off December's announcement, I would double down on that sentiment.In the year ahead, I want to see tangible progress from this partnership. If we do, PayPal's valuation multiples could start to creep higher, a necessity if PYPL stock is to hit $140, let alone $200. Additional Revenue Streams for PYPLPayPal announced Jan. 6 that it had completed the $4 billion purchase of Honey, a Los Angeles-based digital shopping and rewards platform."The addition of Honey to our platform enables a significant step forward in our commitment to provide powerful services and tools for merchants and consumers, move beyond our core checkout proposition and significantly enhance the shopping experience for our 300 million consumers and merchants," Schulman stated in a company release. Whether we're talking about PayPal, Square (NYSE:SQ), Shopify (NYSE:SHOP), or any of the other fintech companies participating in and around e-commerce, they all want to offer as many products or services to merchants and customers as they possibly can.The Holy Grail of e-commerce is to become a one-stop shop for merchants and buyers alike. We're not there quite yet, but moves like acquiring Honey bring PayPal that much closer. Business Insider contributor Mike Jaconi said it best in a Jan. 7 opinion piece:"When it comes to loyalty, every company, from multi-billion-dollar businesses like Amazon to your favorite mom-and-pop coffee shop, wants to do the same thing: Convince you to come to them first -- and not their competitors -- as frequently as possible."Honey's entire business model is built on driving commerce. Now, not only can Honey influence what people buy, but it can also influence how they buy those products.That's huge. In 2020, I'll be watching Honey's overall effect on PayPal stock. Continue to Monetize VenmoOne of the things Sanford Bernstein analyst Harshita Rawat would like to see from PayPal in 2020 is further monetization of Venmo, its peer-to-peer payment system. Toward the end of 2019, reports surfaced that Venmo was losing users to Square's Cash App, a sign that the stakes might be higher for PayPal in 2020. According to Macquarie analyst Dan Dolev, Cash App is doing well in Venmo strongholds such as New York, California and Massachusetts. Up until now, Venmo's owned the markets on both coasts, with Cash App ruling in the South and Midwest. However, with new features being introduced such as commission-free stock trading, Cash App is getting the attention of new user demographics, forcing Venmo to keep pace.In the year ahead, I'm not so concerned with the monetization of Venmo as I am about user base losses. Square is catching up, and while I like both stocks, that ought to be a big concern for PYPL shareholders. The Bottom Line on PayPal StockIn 2019, Square stock was soundly beaten by PayPal. In 2020, I think the battle between the two payment processors is going to be a lot closer. Who will win? I couldn't tell you. Long-term, I like PYPL stock. But if PayPal takes care of these three issues, I think it's got a shot at hitting $140.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Three Things PayPal Stock Needs to Do to Hit $140 in 2020 appeared first on InvestorPlace.
Square Inc. said late Tuesday that it planned to change the rate of its same-day transfers for sellers to 1.5% per transfer. Square stock fell less than 1% in the extended session. In a blog post, Square said that it was charging the new fee because the company has launched "a variety of fast and free transfer options." The change goes into effect Tuesday for all sellers new to instant transfers and Feb. 7 for existing instant transfer customers. Earlier Tuesday, BofA Merrill Lynch upgraded Square to a buy rating from the equivalent of a hold and increased its price target to $75 from $70. Square stock rose 3.2% and closed at $64.59, as the S&P 500 index gained 0.3%.
Square stock gained Tuesday as one analyst upgraded the underperforming payment stock to buy and raised his price target on views that 2020 net revenue guidance looks conservative.
As geopolitical tensions remain muted, stocks continue to hold up near the highs. Let's look at a few top stock trades from Tuesday's session. Top Stock Trades for Tomorrow No. 1: Micron (MU)Source: Chart courtesy of StockCharts.comMicron (NASDAQ:MU) had been trading in a very well-defined channel (blue lines) since summer. After better-than-expected earnings in December, shares eventually topped out at channel resistance.After pulling back and finding support near $52.50, shares blasted higher on Tuesday and pushed right through resistance.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow what? * 7 Stocks That Are Screaming Buys Right Now Bulls will want to see channel resistance turn to support now, and will look for shares to continue higher. Provided MU stock can stay north of prior resistance, $60 is on the table. If it falls below $56, the 20-day moving average is possible. Top Stock Trades for Tomorrow No. 2: Square (SQ)Source: Chart courtesy of StockCharts.comI have been keeping Square (NYSE:SQ) on my radar lately, and Tuesday's action has really caught my attention.Shares are gapping out of a falling wedge, as Square hurdles prior downtrend resistance. However, it's stumbling at the 50-day moving average. While the 50-day has played a role, it's been minor compared to the 200-day moving average.If SQ can clear the 50-day moving average, it's likely that a test of the 200-day is next. Moving over it puts $70, roughly the high from November, on the table. On a pullback, see that prior downtrend resistance holds as support. Top Stock Trades for Tomorrow No. 3: Walmart (WMT)Source: Chart courtesy of StockCharts.comWalmart (NYSE:WMT) jumped higher on earnings in November, and then was immediately flushed lower. Simply put, the stock has struggled north of $120, and has continued to lose momentum.It's now losing the 100-day moving average after just losing the 50-day a few sessions ago. Shares are now running right into uptrend support (blue line).I know WMT is not usually traders' first pick, but the setup is reasonable. If support holds, look for a rally back to the 50-day, and potentially $120. If it fails, $114 and the 200-day moving average are potential downside targets. Top Stock Trades for Tomorrow No. 4: Beyond Meat (BYND)Source: Chart courtesy of StockCharts.comBeyond Meat (NYSE:BYND) jumped higher on Tuesday, launching it over downtrend resistance (blue line) and preventing shares from breaking down below $72.50.Now above trend, as well as the 20-day and 50-day moving averages, bulls must keep BYND stock elevated. Back below downtrend resistance opens it up to a test of support and if it fails, significant downside could be ahead.If bulls succeed though, it could put $90 to $100-plus on the table. Over $90 and it could fill the October gap up to triple digits. Top Stock Trades for Tomorrow No. 5: Pfizer (PFE)Source: Chart courtesy of StockCharts.comPfizer (NYSE:PFE) caught my eye late in Tuesday's session as it flirts with a breakdown below its 20-day and 200-day moving averages.Worse, the stock is breaking down below its rising wedge. If this pattern plays out and PFE stock fails to hold $38.50, it won't be long before the stock tests the 50-day moving average. Below that and a larger decline could take hold.Pfizer is a good company, but the stock is not cooperating. That changes if it can reclaim the 200-day and wedge support. Below though and PFE is neutral, at best.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Are Screaming Buys Right Now * 7 Industrial Stocks to Buy for a Strong New Year * 7 Investing Resolutions to Follow in 2020 The post 5 Top Stock Trades for Wednesday: MU, SQ, WMT appeared first on InvestorPlace.
Shares of Square Inc. surged 3.8% in midday trading Tuesday, after BofA Merrill Lynch analyst Jeff Kupferberg upgraded the credit card payments processing company, saying he now sees an "attractive entry point" and the significant underperformance last year and as investor sentiment remains "quite mixed." The stock rose 11.5% in 2019, while PayPal Holdings Inc. shares soared 28.6% and the S&P 500 ran up 28.9%. Kupferberg raised his rating to buy from neutral and boosted his stock price target to $75 from $70. He said there is "ample upside" to near-term earnings estimates now that initial 2020 guidance has been provided. The company said on post-earnings conference call with analysts in November that revenue growth is expected to be in the "low-30% range" in 2020. He said he believes revenue is the most important metric for the stock, and the 2020 guidance "looks conservative." He said Square is scheduled to host on March 18 its first analyst day since June 2017. "We believe this event could be a positive catalyst, as SQ will update longer-term financial targets," Kupferberg wrote in a note to clients.
Traditional money center banks are spending billions on enhancing technology. For some, it could prove easier to move into the booming fintech arena by acquiring some of the companies dwelling in that ...
(Bloomberg) -- Shares of PayPal Holdings Inc. and Square Inc. gained Tuesday after separate analysts boosted their ratings on the stocks.Square has a “favorable setup,” as sentiment on the company is mixed at the moment and it can beat expectations, BofA’s Jason Kupferberg wrote in a note raising his rating to buy from neutral.“Following significant underperformance in 2019, we see an attractive entry point,” Kupferberg said. He flagged “quarterly execution” and the company’s March 18 analyst day, its first since 2017, as potential catalysts, adding that Square’s 2020 revenue guidance “looks conservative.” Square rose as much as 3.7%, its biggest gain since Dec. 16.Expectations regarding PayPal have been “reset,” Sanford C. Bernstein’s Harshita Rawat wrote in a note upgrading the stock to outperform. She flagged PayPal’s “negative revisions” in the past year, intensifying competition and “execution hiccups” related to partnerships and its Venmo payments app. Paypal gained 29% in 2019, lagging the 44% advance in the S&P 500 Data Processing & Outsourced Services Index.Now, however, Rawat sees a “compelling one-year bull case,” driven in part by higher expectations from those partnerships, such as with MercadoLibre Inc. and Uber Technologies Inc., along with PayPal’s pricing, Honey online coupon transaction and Venmo monetization. She also sees “sustained potential” for margin expansion and a “palatable” valuation. PayPal rose as much as 1.3% to its highest since September.Separately, MoffettNathanson’s Lisa Ellis wrote that --with “resignation” -- she has decided to cut Fidelity National Information Inc., Fiserv Inc., ADP, and Accenture PLC to neutral as those stocks are “likely to take a breather in 2020.”At the same time, she expects payments industry-wide volume growth of 11% in 2020 as her economic outlook for the year remains “healthy.” Payment sector operating metrics, from credit card volume growth, to enterprise IT budget growth, to U.S. employment growth, are all strong, she said.“In a sector with many strong companies and stocks, we maintain a high bar for a buy rating: An expectation of 20%-plus stock upside over the following year, with specific catalysts,” she said. Four stocks currently clear that bar: Square, PayPal, Mastercard Inc., and Visa Inc., in that order of preference, she said.Accenture slipped as much as 2.5%, its biggest drop since Oct. 22, to extend a six-day losing streak.(Updates shares in third, fifth and ninth paragraphs.)To contact the reporter on this story: Felice Maranz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Financial commentators tend to lean bullish on Square (NYSE:SQ) stock as a targeted bet on the future growth of digital payments. I see this as a perfectly reasonable position, as millennials seem willing to give Square's Cash App a chance in a sphere once entirely dominated by the likes of Visa (NYSE:V) and Mastercard (NYSE:MA).Source: Shutterstock However, I believe there's more to the story.Millennials and other demographic segments are becoming more aware of cryptocurrency, and Bitcoin (BTC) in particular. So, unlike the stodgy, payment-processing companies that have hesitated to embrace Bitcoin as a viable currency, Square is preparing for a blockchain-powered world right now. With that said, a position in Square stock could be a serious moneymaker if this gambit succeeds.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Love Bitcoin? Then You Should Like Square Stock TooWhen I'm on Internet forums, I sometimes get the feeling that investors divide into two mutually exclusive camps; Those who invest in stocks, and those who buy or "HODL" (hold on for dear life) cryptocurrency. The dividing line isn't necessarily generational, but I've observed that younger investors seem more willing to give crypto a chance.There's something to be said for the safety of investing in long-standing Dow Jones components like Visa and Mastercard. However, now that millennials are America's biggest generation population-wise, investors need to understand that point-of-sale payment processing has changed; and so has the way people perceive money itself. * 9 Boring Stocks to Buy You Should Never Let Go Of The U.S. dollar has lost much of its value over the years. With that, Bitcoin has become an attractive alternative currency to open-minded consumers. In this regard, Square got a big head start compared to its old-school rivals. As early as November of 2017, the company's Cash App allowed its users to buy and sell Bitcoin.Not everyone wants to open up a Coinbase or Binance account. Therefore, I feel that early Bitcoin integration was a savvy move on Square's part. The numbers bear this out, as Square's third quarter 2019 Bitcoin sales totaled an impressive $148 million. This represents a 20% increase in volume quarter-over-quarter, as well as a massive 245% year-over-year increase. A Job Ad Provides CluesAs a financial reporter, sometimes I gather information from interesting and unexpected sources. In this instance, I discovered a job advertisement on LinkedIn that teases a number of potentially new Bitcoin-friendly Cash App features. If these pan out, Square could end up being miles ahead of Visa and Mastercard in the crypto-integration department.Along with a six-figure salary range and a daunting list of job requirements that would disqualify 99.99% of the population, the employment ad signals Square's eagerness to add Bitcoin functionality to the Cash App in 2020:"The Cash App continues to push the boundaries in finance and Bitcoin sits at the very forefront of these efforts. Cash App's large and ever-expanding network of customers uniquely positions us to add utility to BTC and to bring Bitcoin to the masses in a user-friendly way."Square investors already sensed the company's crypto-friendly vision. But, it's still nice to hear it stated so forcefully -- and with a tone of commitment that I haven't heard from Visa or Mastercard. However, it's the next part of the job ad that indicated the Cash App's potential upcoming perks:"[The chosen job candidate] will own the Crypto Investing product and be entirely responsible for growing its adoption in whatever ways you see fit, which could include tried and true growth tactics, new functionality (e.g. limit orders, auto-invest), or building entirely new features like BTC gifting (P2P)."Whether these Cash App features are actually built out in 2020 is immaterial. Square stock investors, if they're also Bitcoin devotees, should be excited at the prospect of peer-to-peer (P2P) BTC gifting and auto-invest functionality.Call me a visionary or a nut, but I can easily imagine a time in the near future when payment processors will have to integrate these types of Bitcoin-friendly features. The fact that Square wants to move in this direction at this early stage is, to me, highly encouraging. The Takeaway on Square StockMaybe you like Bitcoin and maybe you don't; I can see the merit of both sides of the argument. Overall though, if you're willing to keep an open mind concerning Bitcoin's potential to transform the way we use money, then you might consider "HODLing" some BTC; and while you're at it, some Square stock too.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post The Bitcoin Angle Could Give Square Stock an Edge appeared first on InvestorPlace.
Dressed down, bearded, often wearing a wooly hat and speaking in a slow, quiet voice, you might even call Dorsey the anti-CEO. In November 2019, Dorsey's itchy feet took him to Africa, where he visited Nigeria, Ghana, South Africa and Ethiopia on a listening tour. If you have ever spoken to Dorsey — or more likely read an interview with him — you'll note that he can be somewhat oblique.
Square (NYSE:SQ) delivered a 2019 return of 10%, approximately one-third the performance of the entire U.S. market. Worse still, since it hit an all-time high of $101.15 in September 2018, Square stock is down 38%.Source: Piotr Swat / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the past 15 months, while the company's financial picture has gotten stronger, SQ stock has sputtered badly, trading in a range between $60 and $80, nowhere near its all-time high. * 10 2019 Winners That Will Be 2020 Losers To me, it's inexplicable. Buy SQ Stock on the DipIn October 2018, I suggested that investors consider buying Square stock after it lost 25% of its value in just five days of trading. A buy on the dip bet and all that. The cause of the dip: Former CFO Sarah Friar announced she was leaving to become CFO of Nextdoor, a social network for local neighborhoods. I suggested CEO Jack Dorsey's comments regarding Friar's departure reflected those of someone in charge of a mature organization where its multiple revenue streams were in the hands of their own lead managers or CEOs. Dorsey felt neither he or Friar were expendable given the company's organizational structure.In the meantime, since Friar's departure, Square has grown revenues by 44%, gross payment volume (GPV) by 25%, and adjusted EBITDA by 85%. Those are hardly the numbers of a slow-growth business. Square Is Poised for GrowthInvestorPlace's Laura Hoy recently reminded investors that the company is poised for growth, increasing its Cash App peer-to-peer payment revenue by 115% in the third quarter to $159 million, or 26% of its $602 million in adjusted revenue.No wonder she called Cash App "one of Square's most promising future bets."In October, I highlighted some of the reasons why I liked Cash App providing commission-free fractional trading to its 59.8 million potential users. One of the big ones is that Cash App users tend to be younger and in need of easy ways to save up for retirement. By delivering an ecosystem that solves problems for its users, Cash App's revenues will become stickier than its peers, including Venmo, PayPal's (NASDAQ:PYPL) peer-to-peer payment app.On a different subject, Square's Q3 2019 report showed that larger businesses are taking to Square's payment processing products and services. Since Q3 2017, Square's GPV from sellers with an annual GPV of more than $500,000 grew 700 basis points to 27%. Meanwhile, those sellers with a yearly GPV of less than $125,000 dropped 700 basis points to 45%. At the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to 28%.Why is this important? It shows that the company's revenue has become far more diversified; it now benefits from payment processing across businesses of all sizes. 2020 Will Be a Breakout Year for Square StockLate in 2019, CEO Jack Dorsey tweeted that he would spend as much as six months in Africa in 2020 to explore the fintech opportunities on the continent. As InvestorPlace contributor Josh Enomoto pointed out, the business and investment community are split on Dorsey's decision to abandon his biggest market in search of the next great marketplace for Square products. However, Josh reminds readers that Africa has a very young population, most are unbanked, and two-thirds of Africans use mobile phones, a trifecta of growth for Square's products and services.As they say in hockey, you don't go where the puck is; you go where it's going to be. Digital payments in North America are commonplace. Not so much in Africa.For this reason, I believe Dorsey's African exploration should generate both positive PR for the company while also laying the groundwork for a significant future revenue stream. That should be enough to light a fire under SQ in 2020. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Winners That Will Be 2020 Losers * 5-Year Returns for 5 Dow Jones Stocks Entering 2020 * 5 Semiconductor Stocks to Buy for Big Gains In 2020 The post 2020 Should Be a Breakout Year for Square Stock appeared first on InvestorPlace.
Here's a simple truth about shares of payments processor Square (NYSE:SQ): as go Square's adjusted revenue growth rates, so goes Square stock.Source: Jonathan Weiss / Shutterstock.com For most of 2016, Square's adjusted revenue growth rates were consistently decelerating quarter-over-quarter. As they did, Square stock went nowhere. Then, in the first quarter of 2017, Square's adjusted revenue growth rate bottomed at 39%. Over the next six quarters, Square's adjusted revenue growth consistently accelerated quarter-over-quarter, topping out at 68% in the third quarter of 2018. Over that stretch of adjusted revenue growth acceleration, Square stock went from $10 to $100.Then, adjusted revenue growth rates started decelerating again. From the third quarter of 2018 to the third quarter of 2019, Square's adjusted revenue growth rate steadily dropped from 68% to 40%. As it has, Square stock has dropped from $100 to $60.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow, heading into 2020, it looks like Square's adjusted revenue growth rates are set to stabilize and potentially even move higher, thanks to broader economic tailwinds, easing competitive headwinds, and new product growth. As those growth rates do stabilize, Square stock will head higher.How much higher? My numbers peg $80-plus price tags as doable for SQ stock in 2020. That represents about 30% upside from current levels, and that's simply too much upside potential to pass up on.Consequently, Square stock is one of my favorite growth stocks for 2020. Square's Growth Rates Will ImproveAs go Square's adjusted revenue growth rates, so goes Square stock. Fortunately for bulls, Square's adjusted revenue growth rates are set to improve in 2020 thanks to three big tailwinds. * 10 2019 Winners That Will Be 2020 Losers First, broader economic tailwinds will emerge in 2020. That is, escalating U.S.-China trade tensions weighed on global economic activity in 2019, and curtailed consumer spending trends. In 2020, those escalating trade tensions, will de-escalate. As they do, global economic activity will pick back up. So will consumer spending. Because payment cards are the choice transaction method of consumers globally -- and because Square is one of the biggest payment card processors in the world -- re-accelerated consumer spending will naturally translate into revenue tailwinds for Square.Second, competition headwinds will ease. Throughout 2019, Square has been trying hard to branch out of its small-to-medium sized business (SMB) focus and on-board bigger retailers and merchants. Doing so has caused Square to more aggressively rub elbows with competitors. This elbow rubbing will ease in 2020, because Square is now gaining traction in the Big Retail world, with gross payment volume (GPV) from mid-market sellers (annual GPV in excess of $500,000) growing 44% year-over-year last quarter to 27% of total GPV. The bigger Square gets in the Big Retail world, the less competition headwinds will weigh on the company. So, heading into 2020, these competition headwinds should cool off, thereby providing a lift to revenue growth.Third, new products will turn into meaningful revenue contributors. The big one here is Cash App, which is Square's person-to-person (P2P) payment app that is gaining significant traction in the mobile P2P world. The introduction of fractional stock-trading will propel Cash App to gain mainstream traction in 2020, and that will turn this formerly niche service into a meaningful revenue generator. At the same time, other ancillary services like Online Store will also gain traction and add revenue firepower. Square Stock Can Take Out $80As Square's adjusted revenue growth rates improve in 2020, Square stock will rally towards and above $80.Taking a step back, Square has turned into the payment infrastructure backbone for SMBs everywhere. That is, Square has built an ecosystem of services and tools surrounding its core payment processing machines, the sum of which have become invaluable pieces of the selling equation for SMBs. Now, they are taking those tools, and more aggressively selling them to bigger retailers, with great success. As such, Square appears to be in the process of turning into the payment infrastructure backbone for a much larger piece of the retail pie than just the SMB slice. * 7 Strong Retail Stocks Still Worth a Look Naturally, this trend -- coupled with the fact that payment cards are the future payment method of choice, and Square is a payment card processor -- means that the percent of total retail sales that go through the Square ecosystem will grow over time. Indeed, this has already been happening. Square's share of total retail sales, as judged by GPV, has grown from 0.23% in 2016, to a projected 0.42% in 2019.This share expansion will persist. As it does, Square will sustain big payment volume and revenue growth at scale for a lot longer. Profit margins will also keep running higher, supported by the fact this is is a high gross margin business with significant room for positive operating leverage through sustained big revenue growth.Ultimately, my modeling suggests that Square can hit about $4 in earnings per share by 2025. The price-earnings ratios of mature payment companies, like Visa (NYSE:V) and Mastercard (NYSE:MA), hover around 30. Assuming that same exit multiple and a 10% annual discount, that equates to a 2020 price target for Square stock of over $80. Bottom Line on SQ StockSquare stock is a long-term winner that went through a rough patch in 2018/19 as adjusted revenue growth rates faltered under macroeconomic and competitive pressures. But, those pressures will ease significantly in 2020. As they do, the company's adjusted revenue growth trajectory will improve.Historically, this improvement has led to big rallies in Square stock. Calendar 2020 won't be an exception. By the end of next year, Square stock will likely be hovering north of $80.As of this writing, Luke Lango was long SQ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for January and Beyond * 7 Excellent Value Stocks to Buy for 2020 * 5 Hot Housing Stocks That Could Stay Hot in 2020 The post Here's Why Square Stock Could Soar to $80 in 2020 appeared first on InvestorPlace.
Twitter CEO Jack Dorsey is going into further detail about his unusually restrictive "wellness" routine, which includes only one meal per day.