207.65 -0.25 (-0.12%)
After hours: 4:26PM EST
|Bid||207.65 x 1100|
|Ask||208.05 x 1000|
|Day's Range||207.29 - 210.13|
|52 Week Range||133.30 - 210.13|
|Beta (5Y Monthly)||0.93|
|PE Ratio (TTM)||39.10|
|Earnings Date||Jan 29, 2020|
|Forward Dividend & Yield||1.20 (0.58%)|
|Ex-Dividend Date||Nov 12, 2019|
|1y Target Est||214.82|
All three major indexes closed at record highs on Friday, led by a week of strong economic data and corporate earning results. The Final Round panel discusses the markets at the closing bell.
On Tuesday, Visa inked a deal to buy Fintech startup, Plaid for $5.3 billion dollars. The purchase will help Visa to link banks to financial startups that have millions of customers. FIS Chief Data Officer Bob Legters joins On the Move discusses that and more.
Blockchain will dramatically lower transaction costs for retailers, which paid a collective $108 billion last year.
(Bloomberg) -- Telecom giant Vodafone Group Plc left the Libra Association, becoming the latest company to exit the Facebook-led group trying to create a new global cryptocurrency.The Libra Association, which was finalized last October, once expected to have as many as 28 total members when the project was announced in June. It is now down to 20 following earlier departures from Visa Inc., Mastercard Inc. and others that had committed to the project but then left before the group signed an official charter.“Vodafone is no longer a member of the Libra Association,” Dante Disparte, head of policy and communication for the association, said in a statement. “Although the makeup of the Association members may change over time, the design of Libra’s governance and technology ensures the Libra payment system will remain resilient. The Association is continuing the work to achieve a safe, transparent, and consumer-friendly implementation of the Libra payment system.”The idea for Libra -- a global, digital currency intended to make cross-border money transfers as easy as sending a text message -- has faced opposition at every turn. Facebook, the world’s largest social network, first proposed the idea last June, along with a number of high-profile partners. Many of them are no longer involved, and Facebook has pledged to appease all U.S. regulators before launching the currency. It’s unclear how long that might take.Coindesk earlier reported news of Vodafone’s departure from the group.In a statement, U.K.-based Vodafone said it plans to focus on its own digital payments efforts instead. Vodafone partly owns Safaricom Plc, which operates the M-Pesa mobile-payments app in Kenya, where more people keep their money on their phones rather than in banks. The text message-based app is used by about 35 million people globally to spend, borrow and send money to friends and family.“We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation,” Vodafone spokesman Steve Shepperson-Smith said.\--With assistance from Jenny Surane and Scott Moritz.To contact the reporter on this story: Kurt Wagner in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Robin AjelloFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The credit-card giant’s stock rises 1.5% in Tuesday trading and is on pace for its ninth straight gain and another all-time high.
(Bloomberg) -- As Visa Inc., Mastercard Inc. and American Express Co. prepare to enter China for the first time, one of their biggest competitive threats will come from a company that doesn’t issue credit cards.Jack Ma’s Ant Financial, already the biggest player in China’s $27 trillion payments market, is leveraging its ubiquitous Alipay mobile app to mount a rapid expansion into consumer lending.Instead of issuing cards, Ant allows customers to borrow with a few taps on their smartphones. The loans are wildly popular among China’s army of mobile-savvy shoppers, who often lack formal credit histories but generate enough financial data via Alipay for Ant to make informed decisions on whether they’ll default. The company’s outstanding consumer loans may swell to nearly 2 trillion yuan ($290 billion) by 2021, according to Goldman Sachs Group Inc. analysts, more than triple the level two years ago.“The consumer loans business has been growing at breakneck speed, but there are so many untapped users,” Huang Hao, president of Ant’s digital finance operations, said in a phone interview outlining the company’s strategy.Ant’s push into China’s 10 trillion yuan market for short-term consumer loans will make it an even more formidable challenger to U.S. card companies, which are counting on the world’s second-largest economy as a source of long-term growth.Many Chinese consumers and businesses are ditching credit cards as Ant and its main competitor Tencent Holdings Ltd. make app-based spending, borrowing and investing increasingly user-friendly. In a Nielsen survey of more than 3,000 Chinese people born after 1990, nearly 61% said they use online consumer credit while only 45.5% had a credit card.“For credit card companies coming to China, the biggest challenge is how to attract people,” said Zennon Kapron, managing director of Singapore-based consulting firm Kapronasia. “A lot of Chinese millennials are digital first, used to using Alipay as their first platform for payments, loans and wealth management.”The card giants appear to be moving forward with their China plans despite the headwinds. AmEx’s application to start a bank card clearing business has been accepted by the country’s central bank, while Mastercard has called China a “vital” market and Visa has said it’s working closely with regulators for a license.As part of its phase-one trade agreement with the U.S., China said it won’t take longer than 90 days to consider applications from providers of electronic-payments services. Regulators are opening the industry to foreign competition amid an unprecedented push to give international firms access to the country’s financial sector.Read more: Visa, Mastercard, AmEx Win Easier Access to China MarketIn response to questions from Bloomberg on the threat posed by Ant, Visa said it sees significant potential to support the growth and evolution of digital payments in China and is approaching the market with a long-term focus. Mastercard said it would continue to work with regulators to advance its application and is committed for the long haul. AmEx declined to comment.Ant, an affiliate of Alibaba Group Holding Ltd. that’s widely expected to pursue an initial public offering in coming years, started its consumer-credit business in 2015. Its loans tend to be small: half the users of Ant’s Huabei (translation: “just spend”) service borrow less than $290 and usually pay it back within months.The Hangzhou-based company, which declined to disclose the value of its outstanding loans, keeps delinquencies in check by tapping into a trove of data amassed by Alipay and Alibaba.Many customers have been using the payments and e-commerce platforms for years -- handing over details from ID cards to addresses and spending habits. Once Ant extends a loan, it can track how the money is spent via Alipay. The result is a bad-debt ratio stands at about 1%, below the 1.24% national average for credit cards.Read more: China’s Gen Z, With Little Income, Gets Hooked on Easy CreditAnt keeps some of the loans on its own balance sheet, charging interest rates that range from about 5% to 18%, according to Huang. But most are passed on for a fee to banks and other financial institutions.“We’re set to continue to work with more banks and finance companies,” Huang said. “We are, at the end of the day, a platform.”The risk for Visa, Mastercard and AmEx is that a swathe of Chinese consumers and businesses will view credit cards as obsolete. About 60% of borrowers on Ant’s Huabei platform don’t have one, and many smaller merchants don’t accept cards because they find it’s cheaper and easier to use Alipay or Tencent’s WePay. The former, with more than 900 million users, is Alibaba’s preferred payments provider.“The competitive landscape is full of local players,” said Hang Qian, a partner at Oliver Wyman, a consultancy. “The key challenges are how to promote small merchants to accept credit cards and how to get e-wallet users to switch.”\--With assistance from Alfred Liu.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Michael Patterson at firstname.lastname@example.org, Jodi SchneiderFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Africa-focused fintech firm Flutterwave on Tuesday announced a $35 million fundraising round and partnerships with WorldPay and Visa as it targets expansion in northern and Francophone Africa. The startup, founded in 2016 by Nigerians and headquartered in San Francisco, specialises in individual and consumer transfers -- one of several fintech firms aiming to facilitate and capitalise on Africa's booming payments market. As part of the deal, Flutterwave will become the African payment provider for Worldpay's clients worldwide, making the company the latest African fintech firm to attract global cash and big-name partnerships.
TORONTO , Jan. 20, 2020 /CNW/ - Visa (NYSE:V) and a group of key industry organizations today announced Digital Transformations of Small and Medium Size Businesses: The Future of Commerce, a look at the opportunities and challenges Canadian small and medium size business (SMB) owners face in an increasingly digital world. Developed with leading SMB advocates, the report also offers actionable tips for technology and digital upgrades that business owners can easily implement to grow their businesses. "As consumer expectations are evolving, it is critical that small and medium size businesses evolve with them," said Brian Weiner , vice president, head of product, Visa Canada.
Analysts expect earnings at S&P 500 companies to drop 0.8% in the fourth quarter, but forecast a 5.8% rise in the first quarter of 2020, according to Refinitiv IBES data. Billionaire David Tepper, who founded hedge fund Appaloosa Management, told CNBC that he remains bullish on U.S. equities. The Dow Jones Industrial Average rose 0.17% to end at 29,348.1 points, while the S&P 500 gained 0.39% to 3,329.62.
On a Friday before a holiday weekend, investors can usually expect some sluggish market action and that was the case today, but small gains are better than losses and the small gains accrued today lifted the widely followed U.S. equity indexes to another batch of record highs.Source: Provided by Finviz * The S&P 500 gained 0.39% * The Dow Jones Industrial Average added 0.17% * The Nasdaq Composite pushed higher by 0.34% * Extending a run that has seen it be on of the Dow's best-performing names to start 2020, Visa (NYSE:V) added 1.69% today to pace the blue-chip indexOn a day of light earnings news flow for Dow components, the index was helped higher by some economic points. For example, housing starts jumped to a 13-year high last month. Housing starts of 1.6 million in the last month of 2019 topped the 1.375 million units economists were expecting and likely contributed to Home Depot (NYSE:HD) as one of the best Dow performers after Visa.Housing data is vital because that segment accounts for over 3% of domestic economic output. In a separate report, the Job Openings and Labor Market Turnover Survey (JOLTS) said job openings slipped by 561,000 to 6.8 million for the month of November, indicating the economy is getting close to full employment.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Value Stocks to Own in 2020 Those are just two data points, but they speak to the notion that the U.S. economy is unlikely to encounter a recession this year. Stocks seem to be reflecting as much. A DowngradeWhile Home Depot, Visa and plenty of others were among the Dow winners today, IBM (NYSE:IBM) wasn't part of the fund. Big Blue only gained 0.23% after Morgan Stanley analyst Katy Huberty downgraded the stock to "equal-weight" from "overweight." She maintains a $155 price target on the stock."With signs of deceleration at core IBM, we see long-term revenue growth as less likely without a more meaningful shift in the portfolio," Huberty said in a note to clients.She added that a Morgan Stanley survey of CIOs indicates spending on IBM products and services could slow and there is "risk to CY20 EPS guidance."Overall, IBM's Friday decline was modest and it was far from the worst-performing stock in the Dow today. Boeing AgainThat "honor" goes to Boeing (NYSE:BA), a stock that has been making regular appearances in this space to start 2020, often for challenging reasons. Today, Boeing issued a statement saying it's making "necessary changes" to the software in the 737 MAX passenger jet. At issue is monitor connectivity, which tells pilots if systems are operating correctly."One of the monitors was not being initiated correctly, officials said. The monitor check is prompted by a software command at airplane or system power up, and will set the appropriate indication if maintenance is required, company officials added," according to Reuters.The software update is needed, but is another delay in the effort to get the 737 MAX back in the skies. Fun FactIn cheerier news, there's Apple (NASDAQ:AAPL), which posted another modest gain. I can remember writing about Apple seven or eight years and using factoids, such as the stock's market value exceeding that of all the stocks in countries like Poland and Vietnam. Well, hat tip to CNBC on this one, Apple is now worth more than the entire Australian equity market and that's saying something because that's a top 15 global economy. More MicrosoftMicrosoft (NASDAQ:MSFT) basically flat on the day, but it wasn't for lack of news flow. The company is launching a new campaign this weekend aimed at stealing market share in the workplace app arena from Slack. Microsoft competes with Slack with its "Teams" platform. * 7 Earnings Reports to Watch Next Week "Microsoft said in November that it had more than 20 million daily active users, a 54% increase from its prior announcement about usage and apparently more than Slack, which said in October it had 12 million daily active users," according to CNBC. Bottom Line on the Dow Jones TodayAs noted above, it wasn't surprising to encounter a slow-moving market day today, but the action will pickup next week despite it being just a four-day trading week.Nearly from Jan. 21 though Jan. 24 and that includes a half dozen Dow components over the last three days of the week.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Dow Jones Today: More Records With Some Help From Economic Data appeared first on InvestorPlace.
Analysts expect earnings at S&P 500 companies to drop 0.8% in the fourth quarter, but forecast a 5.8% rise in the first quarter of 2020, according to Refinitiv IBES data. Billionaire David Tepper, who founded hedge fund Appaloosa Management, told CNBC that he remains bullish on U.S. equities. At 2:42 p.m. ET, the Dow Jones Industrial Average was up 0.08% at 29,321 points, while the S&P 500 gained 0.22% to 3,323.95.
The S&P 500 gained 0.21% to 3,323.61 and the Nasdaq Composite was up 0.05% at 9,362.01. Declining issues outnumbered advancers for a 1.06-to-1 ratio on the Nasdaq. The S&P index recorded 122 new 52-week highs and no new lows, while the Nasdaq recorded 186 new highs and nine new lows.
Financial-services giant Visa says it has met its goal to use 100% renewable electricity by 2020 across its 131 offices in 76 countries and four global processing centers.
After several years of what were often hostile or unproductive negotiations, the U.S. and China finally inked the first part of what the world's two largest economies are hoping will be a broader trade package. That and some earnings reports from marquee companies paved the way for modest upside for equities Wednesday.Source: Provided by Finviz * The S&P 500 added 0.19% * The Dow Jones Industrial Average gained 0.31% * The Nasdaq Composite rose by 0.08% * On the back of a strong earnings report, managed care provider UnitedHealth Group (NYSE:UNH) led the Dow Jones today with a gain of 2.8%While some of the bloom of the trade deal rose wore off pretty quickly during the trading day, it cannot be argued that China is pledging to buy $200 billion worth of American goods to close the trade gap between the two countries and crack on technology intellectual property theft. * 7 Socially Responsible ETFs to Buy in 2020 As a voracious consumer of commodities, China will purchase $52.4 billion worth of American energy products, including coal, natural gas and oil, over the next several years as part of the trade accord.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEven with that news, Exxon (NYSE:XOM) and Chevron (NYSE:CVX) were not among the Dow winners today, but losses for the oil giants were minor.In late trading, about half of the Dow's 30 stocks were pointed higher. Onward And Upward For UnitedHealthAs noted above, UnitedHealth, the largest healthcare component in the Dow, was the index's leader today. UNH reported 2019 earnings of $15.11 per share, beating the recently upped guidance of $15 and easily topping its 2018 profit. UNH reiterated a 2020 forecast of between $16.25 and $16.55 per share."Return on equity of 25.7 percent in 2019 reflected the Company's strong overall operating performance and efficient capital structure. The debt to total capital ratio was 40.2 percent at December 31, 2019, full year dividend payments grew 18.4 percent year-over-year to $3.9 billion, and the Company repurchased 22.4 million shares for $5.5 billion in 2019," according to a statement issued by UNH.The company's Optum health services unit grew revenue by $11.7 billion or 11.5% year-over-year to $113.0 billion. Muted ReactionGoldman Sachs (NYSE:GS) also stepped into the earnings confessional earlier today. Investors reaction to this report was much more subdued than what was seen yesterday with fellow Dow component JPMorgan (NYSE:JPM).Goldman stock inched up on the day, but its fourth-quarter net income dropped to $1.72 billion, or $4.69 a share, from $2.32 billion, or $6.04 a share a year earlier. Revenue jumped 23% to $9.96 billion, indicating that the problem, by Goldman's own admission, was rising expenses, something the company said it's addressing. Everywhere You Want to BeVisa (NYSE:V) continued an impressive ascent that has seen the stock climb about 4% over the past week. Investors are rewarding the stock for the company's recent acquisition of fintech startup Plaid, a deal announced earlier this week.For conservative investors looking for fintech exposure, Visa and rival Mastercard (NYSE:MA) have shown themselves to be more than worthy options in a space where stock picking among smaller companies can be difficult for the uninitiated. After UnitedHealth, Visa was the Dow's second-best performer today. * 10 Cheap Stocks to Buy Under $10 Just Another Day For AppleAlbeit in modest fashion, Apple (NASDAQ:AAPL) was again among the Dow winners on Wednesday after another analyst chimed with bullish commentary on the iPhone maker. Canaccord Genuity analyst T. Michael Walkley reiterated a "buy" rating on Apple while lifting his price target on the high-flying stock to $355 from $275.Walkley is enthusiastic about iPhone demand as well as consumers' desire for the Apple Watch and AirPods."He is particularly bullish on the company's opportunities to leverage its huge installed base of devices-1.4 billion worldwide-to grow its increasingly varied services business," according to Barron's. Bottom Line on the Dow Jones TodayWe're still in the early innings of earning season and have some more big financial services reports to work through before getting to technology, the S&P 500's largest sector weight, but there's an important earnings theme emerging in that group investors should take note of."At the sector level, the Information Technology sector has the highest number of companies issuing EPS guidance for the quarter at 39," according to FactSet research. "This is not unusual, as the Information Technology typically has the highest number of companies issuing EPS guidance each quarter. Of these 39 companies, 19 have issued negative EPS guidance and 20 have issued positive EPS guidance."As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Up-and-Coming Small-Cap Stocks to Watch * 7 Energy Stocks to Buy on the Resurgence of the Oil Boom * 3 Standout Oil Services Stocks to Buy The post Dow Jones Today: Trade Deal's Done, Earnings Take Focus appeared first on InvestorPlace.
DOW UPDATE Powered by strong returns for shares of UnitedHealth and Visa, the Dow Jones Industrial Average is trading up Wednesday afternoon. The Dow (DJIA) is trading 77 points, or 0.3%, higher, as shares of UnitedHealth (UNH) and Visa (V) have contributed around 25% of the index's intraday rally.
(Bloomberg) -- After last year’s deluge of financial technology megadeals, investors wondered if the boom could continue into 2020. This week, Visa Inc.’s $5.3 billion acquisition of Plaid Inc. offered an answer: Yes. “Visa buying Plaid brings fintech from out in the wild to something more mainstream,” said Bain Capital Ventures’ Matt Harris. “It’s a ‘growing up’ moment for all of us,” he said, adding that the startup will now be part of the “critical infrastructure underlying the financial services industry.”Plaid’s rapid ascent—Square Inc. looked at buying it in 2018 for just a fifth of the eventual selling price—comes as large companies look to expand their offerings, and contend with fast-growing digital competition. In November, PayPal Holdings Inc. snapped up online coupon company Honey Science Corp. for $4 billion. Charles Schwab Corp. acquired TD Ameritrade Holding Corp. for $26 billion. And Fiserv Inc., Fidelity National Information Services Inc. and Global Payments Inc. did a series of major deals in 2019 that remade the corporate landscape of payment processing.Today there are nearly 60 financial technology startups valued at more than $1 billion, according to data from CB Insights, a research firm. Many are now acquisition targets, analysts say. Those include smaller players like SoftBank Group Corp.-backed unicorn Kabbage Inc., as well as giants like Stripe Inc., most recently valued at $35 billion, a price tag that makes it one of the world’s largest startups. Sanford C. Bernstein & Co. analyst Harshita Rawat, said in a note that Fiserv and PayPal could be potential bidders for Stripe.Ryan Caldwell, chief executive officer of financial data company MX Technologies Inc., suggested the Visa deal could trigger a domino effect in the industry. “The space tends to heat up when there's been one acquisition,” Caldwell said, adding that larger companies were increasingly aware of fintech’s potential. “A lot of these players definitely need to partner,” he said.Satya Patel, a partner at venture capital firm Homebrew, which was a Plaid investor, said he didn’t expect a bonanza for VCs. “As an active fintech investor, I’d like to think that its acquisition is a sign of things to come,” but added that for every Plaid there will be many more startups that are bought for much less, or go out of business. While companies like Plaid and Stripe deal with the plumbing of fintech, would-be acquirers may also seek out consumer-facing financial startups. In the consumer world, “a re-bundling of financial products is underway,” Patel said. Analysts have speculated that future potential acquisitions could involve some of the new payment plan and lending services, such as Affirm Inc., Afterpay and Klarna Bank AB.“The alternative lending space feels ripe for consolidation,” said Lisa Ellis, an analyst at MoffettNathanson. These firms would make sense for “possibly PayPal or Square, since they have alternative lending businesses already and these would extend those, even banks like a Discover,’’ she said.The rising crop of digital-first alternative banks, or “neo-banks,” saw big investment last year, and may also see an uptick in deals. Digital banking startups like Chime Inc., Revolut Ltd., N26 and Dave Inc. fall into this category. Because many of them have similar business models, experts believe the industry could be ripe for buyouts.“The neo-bank space will probably consolidate at some point,’’ Ellis said. “Many firms are burning cash just trying to buy and acquire customers.” But that might not happen right away. Said Ellis: “The valuation bubble has to pop a bit for that group to be acquired.”(Adds investor quote in sixth paragraph. )\--With assistance from Jennifer Surane.To contact the author of this story: Julie Verhage in New York at email@example.comTo contact the editor responsible for this story: Anne VanderMey at firstname.lastname@example.org, Mark MilianFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Extending its last year's rally, Dow Jones touched 29,000 for the second time in three days, suggesting strong complacency in the market.