|Bid||164.86 x 800|
|Ask||164.89 x 800|
|Day's Range||163.45 - 165.61|
|52 Week Range||121.60 - 165.74|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||34.10|
|Earnings Date||Jul 23, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||1.00 (0.61%)|
|1y Target Est||180.49|
J.P. Morgan Chase & Co. and Visa Inc. said Wednesday that Chase customers can soon use their Visa contactless cards to ride subways and buses in New York City. The use of the tap-to-pay cards will start May 31 for the 4, 5 and 6 subway lines between the Grand Central-42nd Street station in Manhattan to Brooklyn's Atlantic Ave.-Barclays Center station, and on all Staten Island buses. "Over time," all subway lines and buses will accept the contactless cards, the companies said. "Contactless payments have shaped the way consumers pay all over the world, saving valuable time and delivering a fast, easy and secure way to pay," said Dan Sanford, Visa's global head of contactless payments. J.P. Morgan Chase's stock slipped 0.4% in premarket trade and Visa shares edged up 0.2%, while futures for the Dow Jones Industrial Average declined 95 points, or 0.4%.
NEW YORK, May 22, 2019 /PRNewswire/ -- Chase customers can soon benefit from an easier way to get around town by tapping their Visa contactless cards to ride New York City's subways and buses, removing the need to stand in line to purchase or load a separate transit card.
More than 20 years after the initial switch to MetroCards from tokens, the Metropolitan Transit Authority is unveiling the ability to use tap-to-pay credit and debit cards for subway and bus fares. Visa Inc. says 80 of the top 100 U.S. retailers now accept the cards, with companies including Target Corp. and CVS Health Corp. adding the technology in recent months. “Mass transit is a really terrific use case for tap and pay -- people commute 10 times a week,” Visa Chief Executive Officer Al Kelly said in a Bloomberg Television interview.
Another jittery week seems to be upon the markets as news headlines highlight that the U.S.-China trade negotiations may be at an impasse. Trade is not a zero-sum game and tariff tiffs will likely affect many companies, countries, and consumers at different levels. Understandably many investors are beginning to get nervous as to where stocks in their portfolios may be headed next. Therefore, today I'd like to discuss the short and long-term outlook for Square (NYSE:SQ), the mobile-payments company.Source: Via SquareFintech is an evolving and growing industry. And the global economy is gradually shifting from cash to cash-less payments. With its strong small business focus and proactive management, Square stock is likely to weather the long-term ebbs and flows of the industry. However, there might be further weakness in the SQ stock price -- after losing 9.2% in the past month -- in the near-term that potential investors should anticipate. Square's Growing EcosystemAlthough it started as a payments company, Square has in recent quarters introduced a range of software, hardware and apps to service small businesses, individual clients and act more like a traditional bank. Its most recent earnings report released on May 1 and accompanying shareholder letter provide a good overview of the growth in service offerings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSquare's ecosystem combines software with hardware to especially enable sellers to turn their mobile devices into point-of-sale (POS) solutions. In other words, through various growth initiatives, SQ management is now aiming to make the company a major player in the fintech apps sphere as well as a small business platform that offers a wide range of services.For example, SQ's peer-to-peer mobile payments Cash App has more than 15 million monthly active customers. Square charges 2.75% per transaction to businesses that accept Cash App payments. It also makes money through individuals using the app. * 6 Chinese Stocks That Could Pop On a Trade Deal Management would like to see the Cash App become more like a traditional bank whose core customers are small businesses as well as individuals. As the younger generations especially are making a drastic shift to using electronic payments, Square would like to capture that growth.In October 2018, the group announced Square Installments, which lets customers pay in monthly installments. Previously, Square had also launched Square Capital, which provides short-term loans to small businesses that use its service to process credit card payments.Clearly, Square is expanding its services and merchant ecosystem across different channels and many growth investors are bullish long term on Square stock. However, they would need to pay special attention to how each business that Square is now chasing contributes to the bottom line.While Square currently enjoys a head start in serving small businesses, Wall Street has some questions as to whether the group can maintain a sustained growth quarter after quarter. What Could Derail Square Stock Fundamentally?The global payments industry is a $100 trillion plus market. And the fintech apps revolution is fast changing the way traditional banks, credit card issuers and mobile-payments companies work with businesses as well as retail customers.Such a big industry inevitably attracts both domestic and global competition. Square faces competition from many well-capitalized companies, including the global online payments group PayPal Holdings (NASDAQ:PYPL), transaction processing leader Visa (NYSE:V) and Fiserv (NASDAQ:FISV), which is shaping up to become a global payments giant.To be sure, not every area Square expands into will necessarily translate into easy money. Unless Square increases its revenue base, Wall Street may not be too forgiving about the SQ stock price. Therefore, from a valuation point of view, I'd urge long-term investors to exercise caution with the current price levels.For example, many analysts are expressing doubts over Square's expansion into the loan business and questioning whether the company is taking on too much risk.Another are of potential concern would be declining growth in transaction fees, which still provide the majority of revenues. Square's shifts toward subscription and services revenues may not be enough to make up for the decline in transaction fees.The May 1 earnings report showed that the group's gross payment volume (GPV) grew to $22.6 billion, at a relatively modest rate 27%. Yet Wall Street was concerned about this growth rate.In other words, shareholders would need to decide whether the company has potentially diversified way too much and away from its core business of payment processing. Therefore, they'd need to regularly re-assess their views based on company and sector developments as well as earnings statements. Where is Square Stock Price Now?Let us briefly remember how SQ stock price has acted over the years.Following its initial public offering (IPO) in late 2015, the price of SQ stock surged from $9 to an all-time high of $101.15 in October 2018 as the company became a darling among long-term investors.With such high return on initial investments, many investors look at the future through rose-colored glasses as they tend to assume growth rates will accelerate for many years. That's how recent IPOs usually become momentum stocks. However, if growth decelerates, then the stock price usually suffers. In other words, a momentum stock like Square trades in line with revenue growth trends and expectations.Despite the euphoria in the first three years, SQ stock price has been exhibiting price weakness since all-time high on Oct. 1, 2018. This year, although the stock is so far up 16%, April and May have not been good months for shareholders. The weak Q2 guidance issued during the Q1 conference call triggered the recent downtrend.If you are looking for an entry signal to buy SQ shares, from a technical chart perspective, I am not expecting the stock to make a significant leg up any time soon. Square stock will need to stabilize and build a base again before a long-term sustained leg up can occur.And, I do not expect the SQ stock price to reach the $100 level any time soon; the market may be starting to price the stock with a more realistic and fair view.The daily volatility of Square stock is high, giving it a broad trading range, so short-term traders should proceed with caution. Expect nearer-term trading in SQ to be choppy at best. So Should You Buy SQ Stock in May?I believe the volatility and selling in the markets will continue in May as well as in June. Like many momentum plays, SQ stock is likely to be a battleground between two camps: investors and traders.Depending on news headlines, Square stock may trade sideways for several days, only to continue to pullback toward the low-$60's level, where it is likely to find initial support.If the support around $60 level does not hold, then it may fall further to $50 level, where I'd expect SQ stock to start to stabilize and then trade sideways until the next earnings release, expected in late July. * 7 High-Yield REITs to Buy (Even When the Market Tanks) Indeed, Square stock may become one of the first momentum stocks to test the lows it saw between $49-50 in December 2018, hence making a double bottom in technical charts. Only then the twice-touched low may become a more reliable long-term support level.In other words, I'd not rush to buy Square stock yet. However, I'd get ready to initiate a position as the price declines further, toward $50. I'd also consider buying covered calls in conjunction with going long on SQ shares.If you already own the shares, you might want to stay the course and hold your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3-5% below the current price point, to protect your profits to date. Bottom Line on Square StockStocks suffer during times of uncertainty and the current political and economic fundamentals offer plenty of questions. Therefore, I'd encourage potential new investors to wait for a few weeks until the smoke clears from the markets and until buyers are definitively back in control in Square shares.Until that time, Square is likely to be a one-step forward, two-steps back kind of stock until it reaches low $50's level. On a final note, if the SQ stock price declines further amid a subdued earnings season, the company could very well become a takeover target.As of this writing, the Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Hot Fintech Market Has Investors Eyeing Rebound in Depressed Square Stock appeared first on InvestorPlace.
Visa Inc NYSE:VView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and increasing Bearish sentimentShort interest | NegativeShort interest is moderately high for V with between 10 and 15% of shares outstanding currently on loan. This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on May 15. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding V totaled $5.69 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is strong relative to the trend shown over the past year, but is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.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.
Square (NYSE:SQ) continues its slide. The San Francisco-based payment services company has moved lower even as its peers continue to see their stocks go higher. Despite a steady decline, analysts have mostly held to their price targets on Square stock. Although SQ may remain range-bound for some time to come, investors now have an opportunity to make a trade. Source: Chris Harrison via Flickr (Modified) Given Square's recent trading activity, where it goes from here remains in question. The stock has fallen steadily since its 2019 peak of $82.78 per share in late February. The company provided weak guidance in its quarterly report on May 1. Hence, earnings and revenue beats for the most recent quarter failed to stem the tide. As a result, SQ trades near the $65 per share level.What makes this more confusing is that our increasingly cashless society will require Square's services. This trend has benefitted peers such as PayPal (NASDAQ:PYPL) over the last year. Consequently, PayPal and peers such as Visa (NYSE:V), Mastercard (NYSE:MA), and American Express (NYSE:AXP) have exhibited remarkably similar trading patterns over the last year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Not Square.I had taken a bearish position on Square stock in recent months. Even with an improving outlook, I thought SQ would face short-term pain back in March. However, with a further 15%, I have recently begun to hold a more bullish outlook. Square Stock Should Clear TargetsAnalysts appear to agree. The average price target on SQ currently stands at $83.50 per share, very close to the stock's 2019 high. On the low end, one analyst set a $30 per share price target. I could see such a price in a recession. However, with a growing economy and a predicted earnings growth rate of 59.6% this year, I do not think such an outcome will occur.The highest current price target comes in at $101 per share, near the level of its 52-week high. Hence, barring a recession, SQ stock should remain in its range for now.The good news for SQ bulls is that the stock price can rise even if Square remains range-bound. Although profit growth will fall modestly, Wall Street predicts that earnings will still grow at an average rate of 45.47% per year over the next five years. Currently, SQ also supports a forward price-to-earnings (PE) ratio of about 57. With its current level of profit growth, I do not see the PE ratio falling significantly in the near term. Square Stock and ExpansionFor investors who want to look beyond the short term, Square also continues to bolster its ecosystem with new products and initiatives. One example involves its Square Online store.After acquiring Weebly, it was able to offer clients a more comprehensive online store. This now makes Square a competitor of Shopify (NYSE:SHOP) and expands its reach in the fast-growing e-commerce industry. Now, with its recent alliance with Postmates, the reach of its ecosystem expands further.Financial services has also become a focus. Square already makes business loans. In recent months, it has also attempted to expand on its Cash App and break into banking itself. However, this move to gain FDIC approval and become an industrial loan company still needs to pass regulatory hurdles.Moreover, Square has only scratched the surface of its potential reach. Currently, the company only operates in the U.S., Canada, Japan, Australia, and the U.K. Though it has not announced plans to move into other countries, it holds tremendous potential offshore.All of these factors should eventually translate into growth for SQ stock, even if the equity remains range-bound for some time to come. The Bottom Line on Square StockThanks to the falling price, traders have an improved opportunity for short-term gain as the long-term outlook improves for investors. A falling stock price continues to take SQ toward the lower end of its current range.Analysts have held to their $83.50 per share price target. Further, Square continues to expand its ecosystem as they add e-commerce storefronts, small business loans, and delivery. The company also offers a bright future to investors with likely moves into banking and other foreign markets.Whether one wants to make a short-term trade or build a long-term investment, SQ stock has fallen to a level where both types of investors can likely swipe in profits.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post With $83 on the Horizon, Square Stock Finally Is Cheap Enough to Buy appeared first on InvestorPlace.
If you're like me, the current bout of trade-induced volatility isn't sitting too right. And while swings and bear markets are a part of investing, the kind of big plunges we've recently seen does make for some sleepless nights. Which is why the stocks to buy today could be America's blue-chip stocks.Blue-chip stocks don't necessarily have a formal definition, but they are generally stable and well-established companies. Blue-chip stocks are typically household names with billions in revenues and steady rising profit profiles. Often, they share the wealth with their investors via rich dividend and buyback programs. The best part is that investors can count on blue-chip stocks to help them get through periods of malaise and bear markets as they tend to be less volatile than let's say, smaller growth stocks.To that end, with the markets starting to feel a bit shaky, blue chip stocks could be the best way to position your portfolio in the upcoming months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal But which blue-chip stocks make sense to buy today? Here are five that could help you get through the next few months and an upcoming bear market. Cisco Systems (CSCO)Source: Shutterstock The technology sector is often seen as a growth element for a portfolio. However, the sector does feature plenty of blue-chip stocks that produce mountains of cash flows, steady dividends, and rising profits. Case in point, former dot-com darling Cisco Systems (NASDAQ:CSCO).After building the internet and networking with its focus on switching gear and routers, CSCO made the smart pivot into services and reoccurring revenues. It basically created the model that many tech firms have copied. And in doing that, Cisco has become a cash generation machine. Last quarter alone, the firm managed to produce more than $3.5 billion in free cash flows.The best part is that CSCO continues to share that cash with investors. The firm recently raised its dividend by 6% and added another $15 billion to its authorized buyback program.And yet, more could be in store for Cisco. The firm continues to add new capabilities to its services platform and recently unveiled new conversational A.I. to its interfaces. Adding in continued data center demand as well as the pending 5G upgrades and Cisco continues to look great.For investors looking for a strong tech sector blue-chip stock, Cisco has to be your top pick. Merck (MRK)Source: Shutterstock The steadfastness of the healthcare sector makes it a prime place to find plenty of blue-chip stocks. And one of the best could be pharmaceutical giant Merck (NYSE:MRK).For starters, MRK features a wide portfolio of current and former blockbuster drugs, vaccines and other therapies. This huge portfolio continues to drive profits and cash flows at the giant. But MRK isn't resting on its laurels. A few years ago, Merck made the shift into newer biotech and advanced cancer-fighting medications. That has turned out to be the right move.MRK's Keytruda has quickly become the go-to medicine for a variety of lung cancers and sales going through the roof. Last quarter alone, the blue-chip stock realized more than $2.2 billion in Keytruda sales alone. That double-digit growth has allowed Merck to up its total forecast and guidance for the entire year. The growth of Keytruda could continue. Merck has begun several trials looking to use the drug in other indications. This could provide even more cash flowing Merck's way. Combining the growth of its cancer portfolio with the rest of its steady drug options, and Merck is looking like a great buy for the long haul. * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs In the end, MRK's 2.85% yield and continued growth make it a powerful blue-chip stock for any investor. American Express Company (AXP)Source: Shutterstock One of Warren Buffett's favorite blue-chip stocks happens to be American Express (NYSE:AXP). And the Oracle of Omaha isn't wrong in owning it. The financial powerhouse has continued to thrive in the rising economy and has a lot to offer investors.AXP is kind of a weird bird. Like rivals, Visa (NYSE:V) and Mastercard (NYSE:MA) -- also two blue-chip stocks worth owning -- American Express operates a secured payment network and acts as a toll road when customers swipe their cards. Here, Amex scores a hefty fee. The firm's discount revenue rate was last quarter was 2.37%. Basically, for every $100 spent on its cards, $2.37 flowed back to AXP. All in all, last quarter, American Express pulled in more than $6.2 billion in revenue from these operations.Secondly, unlike V and MA, American Express is an issuer of its cards. Because of this, it's able to score hefty membership fees, interest and creates a leverage effect for its profits. Moreover, Amex's entire M.O. is about rewards and its partners pay the credit issuer plenty of fees to get their products/offers onto AXP's platform.The best part is that AXP tends to focus on the higher end of the credit spectrum. This removes many of the uncertainty and issues with offering loans and reduces default rates.All of this has made American Express a powerhouse in the financial sector. Best Buy Chip Stocks: Genuine Parts Company (GPC)Source: Shutterstock Sixty-three years. That's an amazing streak for any firm to consistently raise their dividend. But for blue-chip stock Genuine Parts Company (NYSE:GPC), it's just par for the course. The secret lies with the firms massive and irreplaceable moat.There's a good chance that you've never walked into one of GPC's locations, but your mechanic has. Under the NAPA banner, the firm operates one of the largest networks of auto parts and industrial distribution locations in the nation. Those 9,250 locations are located pretty much everywhere and that's key. Auto parts are generally a "need it now" sort of item and are pretty much immune from the whims of online sales.Because of this huge network, GPC and NAPA are pretty much the only game in town when it comes to getting parts to body shops, mechanics and service centers. This has been beyond good for GPC's bottom line over the years. In its 90-year history, sales have increased in 85 of those years. This streak was continued last year as GPC recorded more than $18.7 billion in revenues. Analysts predict that revenues will jump by about 4% this year. Naturally, those sales have turned into profits and a long streak of dividend increase for investors. * The 3 Best Marijuana Stocks to Buy Right Now This consistency has made GPC one of the best blue-chip stocks to own for the long haul. Coca-Cola (KO)Source: Chris Nielsen via FlickrWhen it comes to blue chip stocks, Coca-Cola (NYSE:KO) could be the bluest. Its brand is worldwide and is enjoyed millions of times daily. This has allowed KO to pay a constantly rising dividend for the last 55 years and provide plenty of ballast to a portfolio in markets just like today.And there is still growth to be had.Coke has moved into new beverage categories as tastes have changed. Sparkling water, juices, teas, and other healthy drinks are now on a menu at the firm. And these items continue to grow -- with revenues for these products now accounting for about half of KO's total pie. Meanwhile, KO has improved margins via new packaging designs and sizes. Adding in some tech -- such as its Arctic Coolers and Freestyle machines -- and Coke seems to be winning the beverage wars.The proof is in the pudding. Continued product mix development has resulted in a big 5% jump in revenues last quarter. Likewise, earnings saw a big surge and KO has managed to produce roughly $6.28 billion in free cash flow over the last 12 months.Yes, KO is boring. But that's what exactly what investors should be looking for in a blue-chip stock. Consistency, with a touch of growth. If that doesn't describe Coca-Cola, then I don't know what does.Disclosure: At the time of writing, Aaron Levitt did not have a position in any stock mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 5 Great Blue-Chip Stocks to Buy Today appeared first on InvestorPlace.
Facebook has set up a new financial technology company in Switzerland focusing on blockchain and payments as well as data analytics and investing, Geneva's commercial register shows. Libra Networks, with Facebook Global Holdings as stakeholder, was registered in Geneva on May 2 to provide financial and technology services and develop related hardware and software, plans submitted on the Swiss register reveal.
The technical outlook for Square (NYSE:SQ) isn't all that rosy, despite how well the company has done over the past few years. Indeed, Square stock has been a beast on the long side and has made many loyal investors a hefty sum of cash. But even with the stock market in rally mode for much of 2019, Square stock has been absent.Source: Chris Harrison via Flickr (Modified)What's going on?Shares have been rolling over as it appears there's been a bit of a "buyer's strike" regarding Square. While Square stock had a violent rally off its December lows, shares are actually flat since Jan. 15. Compare that to its peers and Square stock investors may be getting frustrated.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal PayPal (NASDAQ:PYPL) is up 22.5% in the same timeframe, while the PowerShares QQQ ETF (NASDAQ:QQQ) is up 13%. Visa (NYSE:V) and MasterCard (NYSE:MA) are up 18% and 28%, respectively. The year-to-date numbers are even worse.Stock YTD Return SQ 17% QQQ 19.3% V 24% MA 33.6% PYPL 33.8% I know it's hard to complain about a 17% gain for the year, but considering the fourth quarter that we endured, a snap-back rally like that is to be expected. The fact that it's lagging the QQQs and has generated just 50% of the return from its most compared to competitor (PYPL), and SQ stock is frustrating.Will that underperformance continue? Trading SQ Stock Click to EnlargeAbove is the weekly chart for Square stock. You can clearly see that Square was enjoying a nice, solid uptrend (blue line) for the better part of a year. However, that uptrend came to an end in Q4 2018, when the markets took a painful fall. Square, which was already elevated from its uptrend by quite a bit, was no exception to this selloff.In October, SQ stock hit a 52-week high of $101.15. By mid-December, shares had fallen more than 50% at its lows when it hit $49.82.On the bounce, shares ran to that $77.50 to $80 area, which effectively capped SQ stock from January through April. At $81.56 is the 61.8% retracement for the 52-week range, which more or less acted as resistance. Unfortunately, the 38.2% retracement at $69.43 did not support SQ stock on the downside, nor did the 50-week moving average.I worry about Square in the short- to intermediate term if it can't get over some of these technical levels. Specifically, I want to see Square over the 10-week moving average and above the 38.2% retracement. Over downtrend resistance (purple line) would eventually be nice too.If it can't do that though, it's prone to more declines. Those declines are exacerbated in the event that U.S. stocks take a bigger hit. I have my sights on three potential downside levels: $60 is a notable level of both resistance and support and only gave way amid a flood of selling in December. At $55 is the 100-week moving average, which should provide a bounce should SQ stock test it.Finally, a retest of the lows near $50 should attract buyers. I don't expect this level without a larger flush in the broader market. Bottom Line on Square StockSquare has been a multi-year stud, but that action has not translated to 2019. The company still has a terrific growth profile, with analysts modeling revenue and earnings to grow 43.5% and 60% this year, respectively; 2020's forecast is solid too, at 35% and 49% growth, respectively.While management provided a solid full-year outlook on May 1, second-quarter guidance came up a bit short. At 88 times this year's earnings (after the earnings pullback), SQ stock doesn't have much room for error. Disappointing on guidance, however marginal, can sap momentum in a hurry.Let's see where Square stock can firm up and whether it can regain momentum. Over the 10-week will be the first sign of turning it around.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long V. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post If Square Stock Starts to Fall It Might Be Hard to Stop appeared first on InvestorPlace.
Despite overvaluation concerns, the U.S. technology sector has had a stellar rally in the period between 2010 and so far in 2019, also popularly known as the twenty-tens.
After dumping shares of Facebook Inc, Apple Inc, Amazon.com Inc, Netflix Inc and Alphabet Inc - the FAANG components - prominent hedge fund managers including Tiger Global Management LLC have moved back into the popular group.
Visa and Mastercard, by virtue of their brand name, vast network, expanding global presence and strong digital platforms, are key players in the payments processing space.
For prospective interns looking to earn while they learn, it pays to start in Silicon Valley. Bay Area companies — almost exclusively in technology — accounted for half of the top 10 highest-paid internship programs in the U.S., and three of the top five according to a report on median monthly internship salaries released today by Glassdoor. All 10 of the Bay’s representative companies are in the top 25 nationwide and pay their median interns at least $4,500 per month.
Payments processor Visa (NYSE:V) has been a gift that keeps on giving for investors who've held on to their shares. V stock is up roughly 21% so far this year and many believe the firm can keep going. The S&P 500 index is up 13.4% in the same period.Source: Shutterstock However, with a price-earnings ratio of 33.1 and a dividend yield that's below 1%, Visa stock is also an expensive buy. While the V stock price is up there, the company has a lot of room to keep on growing and that make the shares a solid addition to long-term investors' portfolios. Payments Processing GoldmineOne of the biggest reasons investors consider Visa stock at all is the fact that the firm is the largest payments processor in the world, as measured by the number of branded cards issued. That's a big deal because the industry itself has a huge growth runway, so owning the largest beneficiary of that trend has its perks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dangerous Dividend Stocks to Stay Far Away From People are abandoning cash and opting instead for credit/debit cards and digital payments. Back in 2016 we saw the number of non-cash purchases overtake cash for the first time, and since then the gap has only gotten wider. Visa has been on the receiving end of a great deal of that growth. In 2018, Visa processed 124 billion transactions on its network -- a step up from the 111 billion it facilitated in 2017.Those rising transaction figures are the reason Visa has been able to consistently produce double-digit growth over the past few years, a trend that most expect to continue throughout the medium term. Growth AheadWith the largest number of outstanding cards, Visa has a lot of power over the fees it can charge merchants and it's used that power to grow its margins. As one of the most widely accepted credit cards, Visa appeals to customers and that in turn makes merchants more willing to pay a premium to accept Visa payments.It's also important to recognize that Visa stock isn't just a credit card play anymore, either. V has also started branching out into the digital payments space with Visa Checkout, and the firm has also took a position in Square (NYSE:SQ), a smaller payments processor with a firm foothold in next-generation payment methods. Times They Are a' ChangingSome argue that Visa's dominance in the payments processing space is actually a negative. The firm's near duopoly with Mastercard (NYSE:MA) in the credit card space could make it a target for regulatory action, especially as cash payments continue to dwindle and it becomes more and more necessary to have a credit card on-hand. Plus, there's further to fall when you're already at the top. Investors aren't wrong in saying that Visa stock has high expectations to live up to. We saw that materialize in the second quarter when V announced its earnings results. Despite the fact that Visa beat earnings expectations and met revenue predictions, the stock declined as investors digested the news. For those investors who like the payments sector but looking for broader exposure than just one name, the ETFMG Prime Mobile Payments ETF (NYSEArca:IPAY) might be the way to play it, with V stock, MA and SQ among the top holdings in its 40-stock portfolio. Visa Stock's Worth The PriceSure, there are risks when it comes to buying Visa stock. If you're a value investor, it can be worrisome to invest in a stock that's trading near all-time highs. However, it's important to note that Visa is almost always trading near all-time highs because the firm delivers solid growth more often than not. * 7 Cloud Stocks to Buy on Overcast Days The buy case for Visa stock is a simple one: the firm has a commanding market share in an extremely scalable business. The growth opportunity is there and Visa doesn't have to work hard to get it. While some of its peers like American Express (NYSE:AXP) are considerably cheaper -- at a P/E of 14.9 -- Visa offers a level of stability and security that others can't simply because of its size and reach.As long as you believe that non-cash transactions will continue gaining momentum, V stock will be a worthwhile consideration. Don't let the company's price-tag scare you, it almost never trades at a huge discount. Visa is the kind of stock you buy and hold on to for years, so its worth a look for long-term investors. As of this writing Laura Hoy did not hold a position in any or the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post Is Visa Stock Too Expensive at $160 Or Is There Even More Upside Here? appeared first on InvestorPlace.
Visa opened its first Austin office in 2012. It has more than doubled its square footage in the ensuing years as it has grown into one of the region's top 20 tech employers.
The Dow jumps 200 points. So what happens next? A look at what the traders bought today, with CNBC's Melissa Lee and the Fast Money traders, Pete Najarian, Brian Kelly, Mark Tepper and Tim Seymour.
U.S. stocks rose Tuesday as the three major indices clawed back some losses from earlier this week. The S&P 500 rose 0.8%, or 22.57 points, as of market close. The Dow rose 0.82%, or 207.19 points, while the Nasdaq rose 1.14%, or 87.47 points.