|Bid||204.51 x 800|
|Ask||205.01 x 800|
|Day's Range||204.21 - 207.99|
|52 Week Range||133.30 - 210.13|
|Beta (5Y Monthly)||0.93|
|PE Ratio (TTM)||38.56|
|Earnings Date||Jan 29, 2020|
|Forward Dividend & Yield||1.20 (0.58%)|
|Ex-Dividend Date||Nov 13, 2019|
|1y Target Est||218.17|
London-based financial technology startup Currencycloud has raised $80 million in funding from strategic investors including Visa Inc, BNP Paribas SA, SBI Group, Siam Commercial Bank and the International Finance Corp, the company said on Sunday. Existing investors including Sapphire Ventures, Notion Capital and GV, formerly Google Ventures, also participated in the round, CurrencyCloud said.
Blockchain will dramatically lower transaction costs for retailers, which paid a collective $108 billion last year.
Dutch pension giant PGGM also initiated a stake in Visa stock in the fourth quarter, and nearly tripled an investment in Microsoft stock.
The trillion-dollar market cap club expanded last week to a third U.S. company, with Google parent Alphabet Inc topping the lofty valuation mark. Apple Inc and Microsoft Corp are also worth more than $1 trillion on the stock market. Social media platform Facebook Inc appears to have the pole position.
While the market reaches new highs, Square (NYSE:SQ) stock remains in neutral. Square does trade at a high valuation. But with analysts predicting growth deceleration since August, investors have been less confident in giving this stock an even higher valuation.Source: Jonathan Weiss / Shutterstock.com Is Mr. Market right in discounting Square's future prospects? Is Square a software-as-a-service pioneer like Shopify (NYSE:SHOP)? Or is the company more like PayPal (NASDAQ:PYPL) or legacy payment processors like Fiserv (NASDAQ:FISV), Visa (NYSE:V) and Mastercard (NYSE:MA)? Back in October, a Barron's article made the case for the latter. In other words, implying more downside for SQ stock.Add in increased competition, and Square does not look like a great opportunity. So, what's the verdict? Let's dive in, and see why SQ stock is most likely going to be stuck in neutral in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Does Fintech Consolidation Mean for SQ Stock?I've before discussed how the competition's heating up for Square. Square's merchant platform faces growing competition from established players like Fiserv. In retail peer-to-peer payments, Square's Cash App goes toe-to-toe with PayPal's Venmo. Square can still expand its merchant and consumer businesses. But customer acquisition costs could skyrocket as the market becomes crowded. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Square has its work cut out for it. Yet, the company could be an ideal bolt-on acquisition for a larger financial services company. Potential acquirers like Visa or Mastercard come to mind. InvestorPlace contributor Dana Blankenhorn expressed similar sentiments in his Dec. 30 SQ stock analysis. Blankenhorn argued that strategic buyers could pay a 33% premium to its then-trading price of $63.50 per share. In other words, $84.45 per share.Yet, this article came out before Visa's announced acquisition of Plaid. Plaid provides the back-end technology that allows fintech apps like Coinbase and Robinhood to link with your bank account. Why is this recent deal relevant to SQ stock? It could mean Square isn't the type of company deep-pocked payment companies are looking to buy.By owning the key gatekeeper between banks and fintech startups, Visa may not need to buy a company like Square to stay relevant. If businesses and customers pivot toward fintech startups in lieu of legacy payment processors, Visa can still win by owning Plaid. Visa could also leverage its ownership of Plaid to compete with Plaid's existing clients.Square was in talks to buy Plaid in 2018. Unfortunately, they couldn't get their hands on this hot asset. Doing so would've given them in edge against both startup rivals, as well as legacy payment providers. Square Needs Time to Grow Into Its ValuationSQ stock currently trades for 88.7 times estimated 2019 earnings, and 71.5 times estimated 2020 earnings. In contrast, payment rivals PayPal trades for 38 times 2019 earnings, and 33.3 times 2020 earnings. Their other main rival, Fiserv, trades for 30 times 2019 earnings, and 23.6 times projected 2020 earnings. Square's faster growth rate does justify a valuation premium. But with risks growth could decelerate, paying 71.5 forward earnings doesn't look like a smart move.Could Square grow into its valuation? It could. But even Square's high projected earnings growth of 23% implies it would take a while. In the meantime, investors may start giving Square a lower earnings multiple, sending shares to lower levels.So what's the solution? As InvestorPlace's Josh Enomoto recently wrote, the company's Square Capital lending business could move the needle long term. But investors are well aware of Square's intent to become a fintech "financial supermarket." Square could win big with this aggressive growth strategy.But looking at the competitive environment, it seems Square is sandwiched in the middle. On one hand, you have new startups that could outfox Square via innovation. On the other hand, deep-pocketed rivals to use scale to hamper Square's growth plans.That's not to say that Square will be muscled out of business. Yet, growth above expectations seems less likely. With this in mind, it seems SQ stock is more likely to come down valuation-wise than go higher thanks to expectation-exceeding growth. Bottom Line: SQ Stock Could Stay in NeutralSquare has much potential to further disrupt financial services. However, I do not believe the company's valuation premium to payment peers like PayPal is sustainable. If February's earnings call indicates further growth deceleration, SQ stock could fall to a valuation closer to that of peers.Square's move to become a fintech "financial supermarket" further cements the argument that the company is not comparable to a SaaS name like Shopify. Square deserves a growth premium to PayPal, Visa and others, but not a forward price-to-earnings ratio of 71.5.So what's the call? Stay away from SQ stock. The company could surprise come February. But chances are Square shares tread water at best in the coming year.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Expect Square to Remain Stuck in Neutral appeared first on InvestorPlace.
SoFi CEO Anthony Noto said Mastercard was more willing to play ball with the fintech to leverage its naming rights to SoFi Stadium as a cardholder benefit.
Silicon Valley employers like SAP, Visa and EY open up to job candidates with autism, ADHD, dyslexia and other ‘neurodiverse’ diagnoses.
Visa (V) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
San Francisco startup Very Good Security plans to rapidly grow its workforce this year after getting an investment from Visa. The company, co-founded by Abdelkader and Marshall Jones, did not disclose the size of Visa’s (NYSE: V) investment, but the payments giant taking a stake in the startup is notable. Visa is eager to partner with fintechs, and in some cases, buy them outright.
(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 firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, 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 firstname.lastname@example.orgTo contact the editors responsible for this story: Michael Patterson at email@example.com, 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.
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.