71.92 +0.10 (0.14%)
After hours: 7:01PM EDT
|Bid||71.92 x 800|
|Ask||72.34 x 2200|
|Day's Range||71.60 - 73.50|
|52 Week Range||49.82 - 101.15|
|Beta (3Y Monthly)||3.10|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 30, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||82.34|
Known for free credit scores, Credit Karma's success with new auto loan and tax services spurs hiring at its new Oakland office and elsewhere.
The internet is a magical thing and it continues to improve our lives in ways we did not imagine. For example, we can now communicate face to face with friends and family across the globe easier than ever. Because of the internet, we conduct business remotely from almost any place on earth. And best of all, this is only the beginning. The concept is still so new that we continue to find new applications.And therein lies today's opportunity. Even though equity markets seem top heavy, there still are internet stocks that have a lot more upside to offer. I focus on three of them today that still are going higher: Facebook (NASDAQ:FB), Disney (NYSE:DIS) and Square (NYSE:SQ).Equity markets are nervous going into a U.S. Federal Reserve rate decision and the G20 summit. What makes matters worse is that stocks are near their all-time highs and the bulls are edgy; no one wants to be left holding the proverbial bag.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEmotions are high and the opinions are bifurcated. The bulls want to set new highs but they are worried about the geopolitical headlines. The bears, on the other hand, have a ton of reasons why they should continue to short stocks.So much can go wrong with the economic war with China. And the situation in the Middle East is still unstable. Headlines are misleading so I ignore them and focus on the individual stock thesis instead.The U.S. has full employment, so basically everyone who wants a job has one. And the cherry on top is that the Fed has recommitted to cut rates to defend the economy if it needs it. So the macroeconomic environment is still strong to support healthy company profit and loss statements that I can bet on.Under this prism, there are exciting trends that have more upside potential. Today, I discuss three specific winning concepts where the rallies are strong and still not done.Arguably the internet is the most important change we've had in recent generations. Most of the world now has access to a smartphone. We are all connected, independent of time and place. Case in point -- FB has 2.4 billion monthly active users world wide who share their lives remotely, unbound by borders.Suddenly "the cloud" in conversations no longer refers to weather. The world is in a massive trend to move all transactions online, and companies like Square (NASDAQ:SQ) are facilitating the process. Amazon (NASDAQ:AMZN) created the cloud in its current size. Others, like Netflix (NASDAQ:NFLX), used it to change how the world consumes media. * 5 Stocks to Buy for $20 or Less They have rallied a lot, but the opportunity isn't gone. There is still plenty of upside potential to go in these stocks to buy. Internet Stocks to Buy: Facebook (FB)Source: Shutterstock Facebook is the prime example of a company that took the world by storm. After a rough start, its stock is now up over 180% in five years. This years it's up 44%, which is three times better than the S&P 500. This kind of momentum is hard to chase because it perpetually seems ready for a correction.In this case, however, there is plenty of upside room to go as we clearly saw this week.Just yesterday, FB stock spiked 4%, and buyers are adding to it today on speculation that it will launch a cryptocurrency marketplace. This could be a game changer. It's not a coincidence that Bitcoin rallied hugely of late and is now over $9,000. So where there is smoke there is fire, and this will get global interest. There are plenty of areas outside of the U.S. that need blockchain service like this.Facebook's globally reach is so vast that we cannot really forecast the contribution that a new coin can deliver to the bottom line. The scope is so large that this is reason enough to buy Facebook stock and hold it. The company is humble about the monetary reward from it, but I bet it will come.Although critics will try, I bet that it will be hard for bears to emphatically kill this new thesis. The concept is murky enough that it will linger for a few weeks. Shorting FB becomes a hazardous endeavor while Wall Street digests the fuzziness over the crypto effect on its bottom line. I was already bullish on Facebook and this new chapter just adds fuel to the fire. Disney (DIS)Source: Baron Valium via FlickrThe second stock in focus today is one that has completely obliterated the shorts of late: Disney.It's up 30% this year, and I bet still has more to go.When a stock rallies this fast, especially one as "normal" as DIS stock, it's easy to want to short it. After all, this is not a cloud stock but it certainly making the transition into one. It is almost ready to enter the streaming race with its own service. Netflix has the first-mover advantage there but DIS will hit the market with an absolute winner. I bet that every kid on the planet will pressure their parent into subscribing to Disney's new streaming service. * 7 Top-Rated Biotech Stocks to Invest In Today Wall Street is trying to price that potential in, but I still think they are underestimating its impact on the bottom line. Disney already owns a ton of content that is still in high demand. Even after the spike, DIS stock still sells at a 16x trailing price-to-earnings ratio. It is important to note that this doesn't include any forward speculation, it's based on actual past-12-months results.I bet that DIS will blow away all membership estimates and the feeding frenzy for Disney stock will kick into hyper gear. Square (SQ)Source: Via SquareThe third opportunity of the day is Square.Some financial tech, or fintech, stocks are soaring. SQ stock is one of them lately. It used to lead the sector, but recently it has fallen behind its more mature competitors like Visa (NYSE:V), MasterCard (NYSE:MA) and Paypal (NASDAQ:PYPL). This is not through any fault of its fundamentals, so I bet that there is a catch-up trade unfolding.Once SQ stock crossed $68, it triggered a bullish pattern to target $84 per share. There will be resistance around $76, but if markets continue higher then SQ should fill the potential. From there, it could regain its upward momentum and join V and MA at their all-time highs.Unlike FB and DIS, SQ stock is not cheap from the traditional sense. It still loses money but it's relatively new so it needs time to grow into its valuation. As long as it continues to deliver the growth then Wall Street will continue to ignore its high valuation for now.The bottom line is that Facebook, Disney and SQ are three internet stocks to buy that are proven winners and will continue to shine. Under these favorable macroeconomic conditions, they will continue to rally because they truly have even better futures ahead. Their management teams are executing on plans very well as they aim to thrive in this new technology world.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 3 Internet Stocks to Be Bullish On appeared first on InvestorPlace.
Having changed the payment processing game, Square (NASDAQ:SQ) is looking for new games to play. Remember, Square added banking services to processing, like loans and accounting services. This allowed it to grow with the tiny businesses that first got its processing dongle because it was simple and portable.Source: Via SquareSquare's success has forced rivals to respond with a wave of consolidation, most recently the $21.5 billion merger of Global Payments (NYSE:GPN) and Total System Services (NYSE:TSS).But while the processors are protecting their turf by surrounding their services with software, Square is branding new services to expand its reach.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Bitcoin and CashOne of those is Bitcoin. Square recently hired a former Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) executive, Steve Lee, to run its Bitcoin platform and, needless to say, crypto enthusiasts are very excited.So is Square co-founder and CEO Jack Dorsey. He considers Bitcoin the native currency of the internet, and the internet to be bigger than any nation state. Thus, Bitcoin will become a global currency, he believes. * 5 Stocks to Buy for $20 or Less Dorsey is also down on cash and expects apps like his own Square Cash to replace it. Nomura Instinet says 2.2 million downloads of Square Cash were made in May, which was even more than Paypal's (NASDAQ:PYPL) Venmo.With Square Cash acting as a bank account and Bitcoin becoming a global currency, Square is aiming for the purchaser side of transactions, not just the merchant processing side. It's also hoping to get past its transaction processing rivals, jumping ahead of Visa (NYSE:V) with its own processing system. Analysts Love Square StockHype and growth let Square grow its own market cap despite a distinct lack of profits.Net losses have risen for four quarters, to $38 million in the March quarter, and it's expected to barely break even for the current quarter, which will be reported July 31. Still, the shares are up 29% so far in 2019, right in line with Visa, which has both earnings and a dividend.Hedge funds continue to pile into Square stock and almost half the analysts following Square have it on their buy lists.Growth has been spectacular, roughly 50% in 2018, and 45% year-over-year in the March quarter. Bears might note that the research budget, and other general expenses, are rising right along with revenue. But Jack Dorsey's reality distortion field keeps attracting investors. Between them Square and Twitter (NASDAQ:TWTR), the other publicly traded company he runs, have a market cap of about $59 billion. Where Next for SQ Stock?Square's latest move is to consolidate its offerings for specific verticals. Restaurants, for instance, can now get full integration between their table service and delivery apps like Postmates and DoorDash. This means all their money flows through one place, and one account. The product also connects with Square Payroll and Square Capital.What this illustrates is how Square, rather than being just a threat to processors, is increasingly a threat to banks. Square is using accounting to draw bank business from merchants, just as banks once used processing to draw businesses to them. It has changed the game.The risk in being everything to a business, of course, is what happens when Square goofs, as it did recently in e-mailing receipts to the wrong parties. So far, the market has been forgiving. The Bottom LineOur James Brumley has written that while the honeymoon with Square is over, the company seems prepared for a marriage. He expects Square to become profitable and less volatile.But some volatility can be expected with Dorsey, who is using Square to push his favorite issues, like the integration of immigrants, and seems less interested than ever in being the kind of buttoned-down CEO Wall Street expects.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in GPN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post As Square Stock Grows, It's Changing the Game appeared first on InvestorPlace.
Visa (NYSE:V) is up more than 25% over the past year, stoked in part by Federal Reserve rate hikes of 2018 that have translated into higher profit margins for credit card companies. The overall fundamental strength of the company has also been the catalyst behind the Visa stock returns.Source: Kārlis Dambrāns via FlickrThe world's largest retail electronic payments network, Visa, is expected to report earnings in late July. There could be some volatility and profit-taking in Visa in the coming weeks, especially as many other financial services firms also report in July.However, I'd encourage long-term investors who would like exposure to the sector to regard any dip in the share price as an opportunity to add Visa stock to their portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today Long-Term Visa Stock StrengthsRobust Fundamental Numbers: Visa is a quality blue-chip company with a $370 billion market cap. Since going public in 2008, Visa has rewarded shareholders continuously.The group does not issue credit cards or lend money. Instead, the company operates as an "intermediary," charging a fee on each of the 150 million transactions its network handles every day.Visa has three sources of revenue: * Service revenues (for services provided to card issuers for the use of Visa products); * Data processing revenues (fees Visa collects for the authorization, settlement, or clearing); and * International transaction revenues (for cross-border and currency conversion transactions).On April 24, Visa posted better than expected results for Q2 2019. Revenue for the quarter ending March 31 was $5.5 billion, an 8% growth year-over-year (YoY).Earnings per share (EPS) also increased to $1.31, a 17% YoY increase. As a result of robust growth in payments volume, cross-border volume and processed transactions, the company also increased its outlook for the year.As one of the major credit and debit card processors, Visa has strong pricing power and a good profit margin that stands at over 54%. Visa's leadership position in the industry requires financial flexibility so that the management can continue the growth-centric steps. Its current ratio, which measures Visa's ability to pay off short-term liabilities with its current assets, is a healthy 1.6, compared to the industry average of 2.4.In fact, Visa and its long-time archrival Mastercard (NYSE:MA) can be said to have a duopoly in the cards network sector. Both companies collect transaction fees for without bearing credit risk and control a majority of the digital payment infrastructure. And there does not seem to be much threat to the dominance of either company.Visa's sales numbers are forecast to grow over 10% in 2019 and 2020. Overall, Wall Street expects Visa's profitability, high margins, robust cash flow and healthy financial metrics to continue in the coming quarters, too -- a fact that should bring higher prices for V stock.Mobile Payments Space: Many of us have already paid for a purchase with our smartphones at least once as mobile payments are fast becoming a convenient and swift method to pay bills or make transfers. Analysts expect the global market to reach $4.5 trillion by 2023.The most widely used transaction methods include contactless payments without entering the credit card PIN number at the point-of-sale or using a smartphone to pay a merchant or even a person such as a friend or family member, i.e., peer-to-peer (P2P) payments.If you are looking at ways to benefit from this trend, Visa may be a solid company to consider. It's been boosting its mobile payment offerings. As early as 2011, the group took a stake in Square (NYSE:SQ), the San Francisco-based credit card processing fintech, which was founded in 2009. There are rumors that Visa may end up acquiring Square.Its other strategic investments include Stripe and Marqeta as well as It's currently bidding to buy Earthport,a British payments company, that facilitates money transfer services across borders.Over the past decade, smartphones have become a part of our daily lives and it would not be wrong to expect mobile payments to enter our daily lives in a big way. In other words, as more consumers tap to pay or download an app to transfer money, Visa investors are likely to reap the rewards. What Could Derail Visa Stock?Short-term Technical Analysis and Price Charts: Year-to-date, Visa is up 28%. So, in the next few weeks, there might be some profit taking. As a result of the recent impressive run-up in the stock price, short-term technical indicators have become somewhat over-extended. Investors who pay attention to short-term oscillators should note that Visa's technical message has also become "overbought."Leading up to its earnings report in late July, Visa stock could trade sideways for several weeks and even have a pullback toward the low-$160's or even mid-$150's level, where the stock is likely to find major support.Visa stock's beta is 0.98, which means its volatility on average mimics that of the broader market. Therefore if the industry or the broader market declines as the companies release earnings, Visa may also be adversely affected.Investors may consider waiting on the sidelines if they do not currently have any positions open in these tech stocks.If you already own Visa shares, you might want to hold your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3-5% below the current price point, to protect your profits to date.Current shareholders may also consider hedging their positions. As for hedging strategies, covered calls or put spreads with July 19 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility.I would not advocate bottom-picking in case of near-term price weakness. Yet, I find Visa stock to be a compelling buy candidate and by the end of 2020, I'd expect the shares to reach $180.Competition in the Mobile Payment Payments Space: The fintech revolution is evolving and the entire payments industry is growing fast. In addition to Visa, several other U.S. companies are leading the mobile-payment race that requires cutting-edge technology. In October 2014, Apple (NASDAQ:AAPL) introduced Apple Pay which has now become one of the dominant digital payment apps in the U.S.In the P2P space, investors love PayPal (NASDAQ:PYPL) which owns the popular Venmo app. The app has over 25 million users and is ahead of its closest competitors -- Apple's Pay Cash, Square's Cash App, and Zelle, which is owned by Early Warning Services, a private fintech company.If there are mixed earnings reports or important news from Visa's competitors hit the wires, there may be short-term volatility or decline in the stock. For example, if any of Visa peers were to issue an earnings warning, due to a potential slowdown in consumer spending in the U.S. or globally, then Visa shares could also be adversely affected in the near-term.However, Visa is a solid company with continued growth prospects in mobile payments. Therefore small price dips on daily headlines should not keep long-term investors up at night.In general, whenever Visa stock price has a correction, such as the one it experienced in late 2018, the shares come back rather quickly, only to make a new high in several months. Bottom Line on Visa StockVisa stock is a fundamentally sound stalwart investment with further growth prospects, profitability, leadership in the respective market, stability, and proactive management -- factors that are likely to translate into a strong balance sheet and robust bottom line in the rest of the decade.There are two important secular trends currently affecting the payments sector in the U.S. as well as many other countries, i.e., payment transactions are increasingly moving to mobile and digital payments are surpassing cash payments. As the industry is growing and being transformed, Visa stock may indeed provide a solid long-term investment for many shareholders.Investors who are interested in financial services, but do not want to commit all their capital to a single stock such as Visa may also consider investing in various exchange-traded Funds (ETFs) that have Visa as a holding, including iShares U.S. Financial Services ETF (NYSEARCA:IYG), ISE Mobile Payments ETF (NYSEARCA:IPAY), or Vanguard Information Technology ETF (NYSEARCA:VGT).As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post There Are Really No Good Reasons to Keep Laying off Visa Stock appeared first on InvestorPlace.
Square Inc NYSE:SQView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for SQ with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding SQ are favorable, with net inflows of $3.58 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Jack Dorsey, founder of social media giant Twitter and mobile payments venture Square, has been discussing his plans for the latter's team of crypto developers and designers, who will work on open source contributions to the ecosystem. BitcoinTwitter and CryptoTwitter! Square is hiring 3-4 crypto engineers and 1 designer to work full-time on open source contributions to the bitcoin/crypto ecosystem. Work from anywhere, report directly to me, and we can even pay you in bitcoin! Introducing @SqCrypto. Why? -- jack 🌍🌏🌎 (@jack) March 20, 2019 “Just from a business perspective, we don’t look like an internet company today. An internet company can launch something and it’s available around the world," he told The Next Web."Whereas with payments, you have to goThe post 'We don't want any jerks': Jack Dorsey builds crypto dream team at Square appeared first on Coin Rivet.
Fintech and payments company Square Inc (NYSE: SQ ) introduced a "Cash Boost" reward program earlier this month that gives Square Cash debit card users an instant discount or reward. The Analyst ...
The loyalty features that come with Cash Card from payments company Square can help grow revenue, rather than be a drag on the company’s margins, according to KeyBanc.
With Square (SQ) stock trading about 30% off its 52-week high, is it a good time to buy? That’s the question many investors are asking themselves right now.While Square’s first-quarter results beat analysts’ expectations, the company provided a disappointing outlook for the second quarter. With that in mind, should investors be worried about the future of Square's growth story? Well, given the company's position in the payments processors market, its growing platform of services and increased e-commerce penetration, many argue this is more than enough reason to buy Square for the long-term.Evercore analyst Rayna Kumar believes this is true, as she reiterates her Outperform rating on SQ stock, along with an $101 price target. (To watch Kumar's track record, click here)Kumar met with members of Square’s management team on Tuesday, which reinforced conviction in her Outperform rating. The analyst believes Square’s new products, such as Terminal, Register, Retail POS, Cash App will drive 40%+ adjusted revenue growth in 2019 by continuing to increase Square’s TAM to larger merchants and to underbanked consumers. Over the next five years, Kumar estimates 31% annual revenue growth and 55% EPS gains, on average.Kumar says, “Square Cash should be a large driver of long-term growth algorithm with a focus on pushing consumers to utilize Square Cash in place of a bank account.” Cash is similar to Chase Pay or Venmo, where users send money, but also allows for customers to use Card to “make purchases and receive instant rewards through the Boost Program.” Square generates revenue by collecting fees for each transaction on Card. The company continues to build out products for larger merchants, including Square Register, Terminal and Online Store. This remains an incredibly important revenue-generator, as more than 50% of Square’s total gross payment volume now comes from large sellers, or merchants with annual volume greater than $500K.The company has made it a priority to expand its services platform, which has contributed to more engagement by large merchants. Square is trying to become a one-stop shop for all -things finances for these clients. By expanding their product line, the company is able to attract repeat customers, while retaining them for future launched, too. Overall, Wall Street has mixed feelings on Square stocks. TipRanks analysis of 22 analyst ratings shows a consensus Moderate Buy. Of the 22 analysts, 13 rate Buy and nine say Hold. The average price target among these analysts stand at $85.42, which implies nearly 20% upside from current levels. (See SQ's price targets and analyst ratings on TipRanks) More recent articles from Smarter Analyst: * Stay Away from Cresco Labs Stock Until the Smoke Clears * Can Aurora Cannabis (ACB) Stock Set Up for Another Breakout? * Village Farms (VFF) Has a Lot Going for It * Hexo Has Difficult Days Ahead, Analyst Says
If investors are looking to shop for market leadership, Shopify (NYSE:SHOP) definitely qualifies. But buying SHOP stock at today's prices also carries with it the burden of increased risk both off and on the price chart. Let me explain.Source: Shopify via FlickrI've been bullish on more than one occasion over the past couple years in e-Commerce business platform Shopify. Most recently, that optimism was immediately in front of notorious short-seller Citron Research promoting shares as having nowhere to go but down after a rapid run.It almost goes without saying our bullish viewpoint looked silly on the heels of that. Citron warned that SHOP stock was set to trade down $100 over the next 12 months. But as this clash of opinions on Shopify shares was during the first three trading days of the second quarter, Citron's bearish gain of roughly $16 in paper profits was also fleeting.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shopify Stock Took OffAt the same time, our discussed slightly-above-the-market entry price in SHOP was triggered only a handful of days later. And the stock has literally never looked back. In just over two months, Shopify shares have rallied from below $210 to north of $310 as of Wednesday's close.The $100 run-up and return of 47% versus the S&P 500's gain of less than 1% over the period not only shredded Citron's "nowhere but down" thesis, but also demonstrates SHOP stock's obvious market leadership. It also raises the specter of shares having a more credible 'nowhere to go but down' scenario play out. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Bottom line, despite Shopify shares still being positioned as "best in class" -- a view shared by Citron, mind you -- "a real" rapid run in SHOP coupled with competition from Square (NYSE:SQ), Facebook (NASDAQ:FB) and possibly Microsoft (NASDAQ:MSFT), does make Citron's prior risky valuation concerns more sound.Some SHOP stock bulls may say this is a baseless opinion. I understand. Well-intentioned warnings of nosebleed P/E's or worries of other traditional metrics which appear priced for perfection are still far from perfect indicators for a growth company like Shopify. Still, a baseless SHOP stock on the price chart should have ironclad agreement among bulls (and bears), and that's a worry in the near-term. SHOP Stock Weekly ChartLooking at SHOP stock's weekly chart, my takeaway is Citron may finally get its $100 drop this year. With this rally, Shopify shares are lacking any kind of meaningful weekly basing patterns near current levels. The stock has also largely fulfilled any type of upside price targets from previous base breakouts.A correction of this magnitude would simply put shares into a testing position of Shopify's 50% retracement level. That's just above the short, flat base which had this strategist upbeat on shares back in early April.Along with this formidable technical support, the move would work out to a correction of roughly 32%. Since that's just over the classic 30% level generally accepted as constructive behavior in growth stocks, I'm confident a nice buying opportunity in SHOP stock would also be at hand.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Wait for the Drop to Buy Shopify Stock appeared first on InvestorPlace.
On Thursday we had some geopolitical news that sent oil prices flying while U.S. stocks pushed higher. The bears still can't grab control of the football, despite the bulls having run so far, so fast. Let's look at a few top stock trades as we enter Friday. Top Stock Trades for Friday 1: Advanced Micro Devices Click to EnlargeShares of Advanced Micro Devices (NASDAQ:AMD) made new highs earlier this week, but have since retreated. The stock is under pressure following an analyst warning on valuation and after reports surfaced of new GPUs from Nvidia (NASDAQ:NVDA).InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's got shares down below $32, as a potential pullback looms. InvestorPlace readers nailed the breakout in AMD over $29. If we could get a "return to the scene of the crime," that would be a great potential buying opportunity. * 7 High-Quality Cheap Stocks to Buy With $10 $30 may buoy the name first, though. That's where the April highs rest with the 20-day moving average trending higher toward that mark now. There are various levels between $27.50 and $30 that should support AMD stock and I consider this a buy-the-dips candidate until proven otherwise. Top Stock Trades for Tomorrow 2: Square Click to EnlargeSquare (NYSE:SQ) did a great job pushing over downtrend resistance (blue line), hurdling its 50-day moving average in the process.So long as SQ stock maintains above $69 it looks good on the long side in the short term. That keeps the stock over the 61.8% one-year retracement and the 50-day moving average. Over the 200-day moving average -- which Square is currently contending with -- could spark a breakout. Top Stock Trades for Tomorrow 3: Disney Click to EnlargeDisney (NYSE:DIS) continues to move really well. Notice how the House of Mouse was almost immune to the May selloff. Not that it didn't come under pressure and dip below its 20-day moving average -- it did -- but that's mostly as shares went from $107 to $142 in just a month's time.After consolidating those gains and reclaiming the 20-day, shares look ready to move again. They are knocking on the door of new highs and it looks like DIS wants it. A breakout over $142.50 could trigger another wave of buying, perhaps pushing it to $150. Top Stock Trades for Tomorrow 4: American Airlines Click to EnlargeAmerican Airlines (NYSE:AAL) is rebounding from a brutal breakdown in late May, with shares crashing through long-time $30 support.However, it's since reclaimed that level, as well as the 20-day and 50-day moving averages. Now it contends with downtrend resistance (blue line), while the 200-day rests about $1 above current levels. Both have been strong levels of resistance.Should they continue acting as resistance, see if investors get another buying opportunity back at $30. Otherwise, a breakout opportunity may be in the cards. Top Stock Trades for Tomorrow 5: Cloudera Click to EnlargeWhat a disaster Cloudera (NYSE:CLDR) has been. Shares have been cut in half in less than a month and appear lost for direction. There are better setups out there, but traders seem to have their eye on this one.Over $5.40 to $5.50 could send CLDR back to $5.90. Clearing this mark is what's necessary to start filling the gap, while the descending 20-day moving average will likely act as resistance. Below $5 is a big concern with CLDR.I'd rather play a different stock… Top Stock Trades for Tomorrow 6: Zscaler Click to EnlargePerhaps something like Zscaler (NASDAQ:ZS).This name has been knocking on the $80 door all day Thursday and wants to bust through like nobody's business. Can it? Maybe this one fails to push through or causes a false breakout, but I like it more than CLDR. Watch for a push through $80 on ZS. * 6 Growth Stocks That Could Be the Next Big Thing This one paid out nicely last time we were watching it.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post 6 Top Stock Trades for Friday: AMD, SQ, DIS appeared first on InvestorPlace.
A broad set of related trends is fueling M&A activity, include continuing growth in e-commerce and a global shift from cash to electronic payments.
While Square (NYSE:SQ) stock has gained a respectable 12.6% in the past year, that performance pales in comparison to the previous 12-month periods, when SQ stock nearly doubled each year.Source: Via SquareNot only that, the shares have also been disappointing when looking at other companies in the space. Consider that the annual return for Shopify (NYSE:SHOP) is a sizzling 91% while PayPal (NASDAQ:PYPL) stock has risen 37% and Visa (NYSE:V) is up 28%.Now the payments industry holds tremendous opportunity. One estimate is that the size is a whopping $110 trillion on a global basis. No doubt, technologies like cloud computing, mobile and AI (artificial intelligence) will continue to be disruptive forces.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet despite all this, I still think there are some nagging risks with Square stock. Let's take a look: SQ Stock: GrowthSQ continues to grow at a fast pace. In the latest quarter, net revenues jumped by 43% and adjusted revenues spiked by 59%. The company also increased its full-year guidance.Yet there are some potential issues with the growth story. For example, gross payment volume increased by only about 27% to $22.6 billion. The Street, on the other hand, was looking for $22.8 billion.As well, the U.S. economy is showing some signs of weakness, as seen with a drop-off in job gains and sluggishness with retail sales. Businesses also appear to be pulling back on making investments because of the uncertainty regarding trade, especially with China. * 7 Stocks to Buy As They Hit 52-Week Lows If there is a recession or a serious slowdown, SQ could take big heat. The reason is that a big chunk of the company's revenue come from small businesses. And yes, they generally are disproportionately effected during economic hard times.According to Square's 10-K filing: "Small businesses frequently have limited budgets and limited access to capital, and they may choose to allocate their spending to items other than our financial or marketing services, especially in times of economic uncertainty or in recessions. In addition, if more of our sellers cease to operate, this may have an adverse impact not only on the growth of our payments services but also on our transaction and advance loss rates, and the success of our other services." Square Stock: ValuationEven though SQ stock is 30% off its 52-week high -- which was tipped in September -- the valuation is still far from cheap. Note that the forward price-to-earnings ratio is roughly 63x and the shares trade at about 8.3x sales. * 7 Dark Horse Stocks Winning the Race in 2019 Now a premium is deserved for a company with Square's strong platform, brand and customer base. But then again, if the growth rate starts to falter, there could easily be more downside. We already saw evidence of this in the latest earnings report. SQ Stock: Managerial BandwidthA key part of Square's strategy has been to add more and more services on its platform. This has not only provided more convenience for customers but has expanded the market opportunity. Note that this strategy has been critical in keeping up the overall growth rate as payments volumes have been trailing off.But there is a risk to this strategy -- that is, it increases the complexity of the organization. The services span diverse categories like invoices, deposits, inventory, appointments, website hosting, marketing, employee management, business loans and so on. All of these are in highly competitive markets.Besides, CEO Jack Dorsey is essentially a part-time CEO, as he also heads up Twitter (NYSE:TWTR). So it will certainly get more challenging for him to manage SQ as the business scales.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post The 3 Scariest Risks With The Square Stock Growth Story appeared first on InvestorPlace.
This year's recipient has managed to run 20 marathons, along with a key part of Charles Schwab's operations.
Square will continue to push hard to maximize revenue growth, Evercore says. The Cash app will be an important part of that effort.
For all of 2017 and most of 2018, Square (NYSE:SQ) was one of the hottest stocks in the market. Investors were drooling over the payment processor's high growth trajectory, strong margin gains, and ability to win share in the global-payments market. During that stretch, SQ stock went from $14 in early 2017 to over $100 by October 2018.Source: Chris Harrison via Flickr (Modified)But things just haven't been the same for SQ stock since topping the $100 mark in October. Stock market volatility is what started the selloff of SQ stock. But, even as financial markets have rebounded to all time highs in 2019, Square stock hasn't followed suit, mostly because the company's growth is slowing. When richly valued SQ stock traded at $100, it was not priced for slowing growth. * 7 Stocks to Buy for the Coming Recession So while the S&P 500 currently trades just 1% off its all-time highs, SQ stock still trades nearly 30% off its all-time highs. Does this relative underperformance make SQ a great buy or a name that must be avoided?InvestorPlace - Stock Market News, Stock Advice & Trading TipsI think SQ stock is a great buy at this point. Here are the four major reasons for my opinion. Square Is Supported by Powerful Growth TrendsThe first big reason to buy SQ stock is that the core growth outlook of SQ remains healthy and looks poised to remain healthy for the foreseeable future.This company is helping usher in a new era of cashless commerce, providing systems and machines which allow retailers of all shapes and sizes to process non-cash payments of all types. Because the world is moving towards phasing out cash, Square's position as a facilitator of non-cash payments has enabled the company's top line to increase at a robust, 40%-plus rate for the last several years.The movement away from cash is still in its early stages. Around 30% of all purchases are still made with cash. That number will eventually fall to zero, meaning that there's still a ton of room for companies in the cashless payment market to grow. As that market continues to expand, SQ will continue to grow rapidly over the next few years. Square's Margins Are Consistently Marching HigherThe second reason to buy SQ stock has do with its improving profitability and its potential for further margin gains.Once upon a time, SQ was a barely profitable, hyper-growth company. But over the past several quarters, its margins have consistently, quickly risen as its growth has lowered the impact of its operating costs. At the end of 2017, its trailing twelve month adjusted EBITDA margins were around 14%. By the end of 2018, that number had risen to 16%. By the end of 2019, it's projected to hit 18%.These consistent margin gains should continue. Square makes most of its money through transaction-based and subscription-based revenue. Those are high-margin revenue streams. Square's gross margins last quarter were around 80%. With its high gross margins and rapid revenue growth, SQ's bottom line looks well-positioned to climb meaningfully over the next several quarters. The Company Has a Small Portion of a Huge MarketThe third reason to buy SQ stock is that its market is large,while its share of the market is small.Square has a huge addressable market. Because the company facilitates payments for retailers of all shapes and sizes and through all channels, Square's addressable market is basically the entire pool of global retail sales. That's a $20 trillion-plus pool. Square's gross payment volume last year was under $85 billion. That means Square obtained just 0.35% of the global retail market in 2018.But that's up from 0.29% share in 2017 and 0.23% share in 2016. Thus, Square's market share is expanding at a healthy rate, while its market is enormous. Because Square's share is so small and its market is so big, its market-share expansion can persist for a long time, powering continued robust growth for Square. Management Is Relentlessly InnovativeThe fourth and final reason to buy SQ stock is that the company's management is relentlessly innovative, and that innovation has enabled SQ to expand its addressable market, while constantly growing rapidly.Square started off as a brick-and-mortar credit card processor. The company is so much more than that no. It facilitates non-cash payments in both the physical and digital retail channels.SQ has launched services like Square Capital and Square Payroll to help retailers better manage their businesses. It's also unveiled Square Cash App, enabling it to to jump into the consumer person-to-person payment market. At the same time, it owns a food delivery network (Caviar) and has created a Square for Restaurants system aimed at integrating delivery and takeout orders into a single point of sale system.All in all, Square has, time and time again, illustrated an impressive talent for innovation, and all that innovation is largely why Square has generated and will continue to sustain high revenue growth rates. The Bottom Line on SQ StockOnce upon a time, SQ stock was one of the market's favorite stocks. That is no longer true today. But its core growth fundamentals remain solid, so the market's dislike of SQ stock won't last long. Once it passes, Square stock will roar higher.As of this writing, Luke Lango was long SQ. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 4 Reasons to Buy Square Stock for the Long Run appeared first on InvestorPlace.
Square, the payments company co-founded by Twitter chief executive Jack Dorsey, has launched an initiative to enable refugee entrepreneurs to accept card and mobile payments, to help get their businesses off the ground. Square, which Dorsey set up to provide financial services to people neglected by banks, is partnering with The Entrepreneurial Refugee Network (TERN) to give cards readers and waive transaction fees for participants. Muzaffar Sadykov, one of three refugee entrepreneurs to join Dorsey on stage to launch the collaboration, said Square was helping him serve more customers, more quickly, at his street-food business 'Oshpaz'.
San Francisco-based SpotOn Transact has big hiring plans after raising $40 million, especially in its rapidly growing services for restaurants. The latest financing round was led by Franklin Venture Partners, the venture capital arm of San Mateo-based Franklin Templeton and its parent Franklin Resources Inc. (NYSE: BEN). The financing included “significant participation” from Dragoneer Investment Group, which previously invested in Airbnb, Square (NYSE: SQ), Slack, ServiceNow (NYSE: NOW) and Uber (NYSE: UBER), among others.
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback […]
Compared to 2017 and the bulk of 2018, Square (NYSE:SQ) has been disappointing of late. SQ stock is still down 36% from its early-October high, unable to hold on to its rebound gains from earlier this year. Indeed, shares are down nearly 18% from March's average price, largely thanks to a slowdown in revenue growth.Source: Chris Harrison via Flickr (Modified)Investors and analysts alike, however, may have been imposing unfair expectations on the company. The bigger it gets, the tougher the comparisons become. Traders revolted at the initial sign of a headwind.It was an inevitable development for Square, though, just as it's an inevitable development for most young tech companies that are building a business on a good idea. Eventually, an organization grows out of its high-growth phase and moves into the mature phase of its life.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat unexpected graduation upended this name, but the subsequent weakness is an opportunity to step into SQ stock on the cheap while the market reframes what Square should be at this stage. Tough Act to FollowThe fact that it was able to launch at all is impressive in and of itself. * 7 Stocks to Buy As They Hit 52-Week Lows When Square debuted in 2009, Paypal Holdings (NASDAQ:PYPL) was arguably the king of the online payment world, while players like Visa (NYSE:V) and First Data (NYSE:FDC) seemingly held a firm lead on their piece of the payments market.Square's founders Jim McKelvey and Jack Dorsey, who also runs Twitter (NYSE:TWTR), saw an unmet need, though. With 23 million sole proprietors in the United States in addition to millions more small shops being ignored or poorly served by the credit card industry, allowing them a simple and cost-effective means of accepting card payments has proven to be a huge opportunity.Several numbers confirm the idea, not the least of which is the 350% advance SQ stock has dished out since the end of 2016. Accelerating double-digit growth made for a convincing bullish argument.Things began to change in the latter part of last year. The pace of growth began to slow and outright decline in the first quarter of this year, from a pace of 51% to 43%.Still, it's growth that most other companies envy, and growth that, from most other companies, would have investors salivating. Not Square, though. The chatter surrounding this storied stock -- and it is a true "story stock" -- has been all about the breakneck speed of its sales growth, en route to a swing to a real GAAP profit. When the pace slowed, the story crumbled.Take a closer look at the company, however. The future still looks amazingly bright, and the market may be on the verge of mentally repositioning Square as something other than a story stock that needs unsustainable growth rates to drive unsustainable rallies.Once that dust fully settles, SQ stock should become a solid, even if less volatile, prospect. Square OutlookIt's a reality that hasn't eluded analysts even in the midst of some rather dramatic investors panic.Though traders have driven shares down to their current price near $65, the consensus target remains just under $83. That's still relatively close to its peak consensus target of around $88 in December of last year, before another wave of selling forced some analysts to at least acknowledge current price action.Driving that rather persistent optimism is a growth streak that's projected to remain in place for the foreseeable future. While the relative, comparison pace is slowing, on an absolute basis, the growth train continues to roll.By the third quarter of this year, analysts expect positive GAAP earnings.It's not just wishful thinking either. Square has catalysts in the cards. Chief among them is ongoing growth of its Cash App. Barclays analyst Ramsey El-Assal reiterated this week the possibility that it could propel SQ stock higher, after saying in March: "Square's vision is that consumers rely on Cash App, instead of a bank account, for services like bill pay, budgeting, investing, and lending, in addition to storing, spending, and sending money."Instinet's Dan Dolev is bullish too, though for a different reason. He also noted in March: "With over 80% of large-sellers self-onboarding, we expect this positive trend to continue," highlighting Square's traction with bigger businesses. Bottom Line for SQ StockInvestors are slowly but surely figuring out the future can't look like the past no matter how successful the company is. Though it's taking time, the adjustment is being made. * Walmart Stock Looks Poised to Reach $120 This Year That's not to suggest such an adjustment is made in a straight line. Surely many traders will remain stuck in the old paradigm, while others are already valuing Square like an old-school name. It's a paradigm that sets the stage for more volatility. That volatility is being exacerbated by the overall market's uncertainty.The fog is lifting though, and what's starting to emerge is a company that's still easy to own even if it's not putting on a fireworks show.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post Buy SQ Stock As Square Enters the Next Stage of Its Life appeared first on InvestorPlace.