|Bid||38.83 x 1200|
|Ask||38.99 x 1800|
|Day's Range||38.74 - 39.35|
|52 Week Range||26.01 - 42.00|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||15.01|
|Earnings Date||Oct 23, 2019|
|Forward Dividend & Yield||0.56 (1.44%)|
|1y Target Est||42.18|
Performance of eBay's (EBAY) core marketplace business is likely to have been impressive in Q3. Yet, heightening competition might have hurt its earnings.
Here's why retail stocks may stage a holiday spending season breakout. Shop for some trading opportunities using these three retail ETFs.
eBay (EBAY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Despite the ongoing U.S.-China trade war, shares of Alibaba (NYSE:BABA) stock are currently up over 25% in 2019. Many of America's largest tech stocks would love that kind of growth. That doesn't mean that BABA stock is without its issues. The stock is still trying to claw back to its 52-week high that it achieved in June. The stock has been trading in a fairly well-defined range for the last two years.Source: Jirapong Manustrong / Shutterstock.com Looked at without the overlay of being located in China, Alibaba Group is a company American investors should love. However, the sheer size of the Chinese e-commerce giant and the ongoing trade war add a risk premium to Alibaba stock. And that risk doesn't look to be easing up anytime soon. Alibaba is an Economy Unto ItselfIt's often mentioned that Alibaba Group is like Amazon (NASDAQ:AMZN). However, BABA is also part eBay (NASDAQ:EBAY), Google (NASDAQ:GOOGL), and Fed Ex (NYSE:FDX) rolled into one. In fact, CEO Daniel Zhang told investors the best way to understand Alibaba is to think of it as an economy unto itself. That was in 2017.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday, Alibaba has a market capitalization of almost $430 billion. By 2037, the company has plans to create 100 million jobs, support 10 million profitable businesses and serve 2 billion consumers worldwide. This would make Alibaba the world's fifth-largest economy. * 10 Hot Stocks Staging Huge Reversals And that's where things get interesting. Companies like Google, Amazon, and Facebook (NASDAQ:FB) have been in the government's crosshairs for being monopolistic. As I see it, if Alibaba were a U.S. company they would trump (no pun intended) all the other FAANG stocks in being the villain of the 2020 campaign. Politicians seeking to score political points would look at Alibaba and cry monopoly. Then, like they've done with American big tech, they would look to break it up, or at the very least regulate it. BABA Stock is not Immune to Trade TroublesI don't know if American politicians are upset with Alibaba. If they are, the best they can do is to punish Alibaba via the trade war. I'm not suggesting that BABA is the target of the trade war. However, Alibaba stands to lose access to U.S. investor capital.A report from Bloomberg News said the White House was considering blocking government pension funds from investing in China. Bloomberg also reported that the White House was considering delisting Chinese stocks from American exchanges. This would be a more substantive blow.However, perhaps as part of the "trade truce" between the two countries, U.S. Treasury Secretary Steve Mnuchin said that the Trump administration "is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time."This report followed a CNBC report stating the White House was considering curbing U.S. investment in China. The move was being considered to "protect U.S. investors from excessive risk due to lack of regulatory supervision." * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) This gets to the heart of the matter. In 2013, The United States and China signed a memorandum of understanding that included a clause that allows Chinese companies to withhold certain documents from U.S. regulators. The significance is that, particularly prior to its IPO, Alibaba was being accused of irregular accounting practices. However, perhaps to appease American investors, in 2015, the Chinese government cracked down on Alibaba. This caused then CEO Jack Ma to say the company was indeed not too big to fail. What is the Real China Price that Alibaba Stock has to Pay?My InvestorPlace colleague Will Healy made the argument that Alibaba stock has already priced in the geopolitical effects of the trade war and the ongoing turmoil in Hong Kong. However, while the Chinese like to save face, so will American corporations and investors. Right now, the optics surrounding China are not favorable. Will American corporations and investors make a conscious efforts to limit their exposure to China? If, and that's a big if, it would have an undetermined effect on BABA stock.The Chinese desire to save face is cultural. The American desire to do the same is more circumstantial. In time (but in fairness, nobody can say when) the current issues surrounding China will fade. Once that occurs, American investors will almost certainly take a renewed interest in BABA.For now, uncertainty is the price that investors in Alibaba stock are going to have to pay. But if they do, the payoff in a world with less tension toward China should be immense.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post Invest in Alibaba Stock for the 'What' and not the 'Where' appeared first on InvestorPlace.
The typical Facebook employee stays with the company for just over 2.5 years, a Business Journal analysis shows. This is how that compares to other large Silicon Valley tech employers, like Cisco, Apple and Intel.
TORONTO , Oct. 17, 2019 /CNW/ - Today, eBay Canada announced the winners of its 15th annual Entrepreneur of the Year Awards, recognizing exceptional Canadian small businesses who are harnessing the opportunities of eBay's marketplace to reach new customers across the country and around the world. "As an enabler of and champion for small businesses, we're proud to be celebrating and supporting the very best in Canadian entrepreneurialism on eBay," said Andrea Stairs , General Manager of eBay Canada & Latin America .
The NFL’s dramatic expansion of mobile ticketing this year has gotten off to a bumpy start, but league officials and ticketing industry experts say problems are isolated and can be resolved with time and education.
Knowing which stocks to buy in front of earnings can be dicey business. In the coming week, three market leaders are showing the right kind of stuff on the price chart to afford technical-based "buy" ratings in front of the news.Any investor with even a passing interest in the market knows earnings can be a powerful catalyst on a stock's share price. Growth play and over-the-top streaming hardware top dog Roku (NASDAQ:ROKU) jumped nearly 21% following July's report. What's more, in the two periods prior ROKU stock soared 28% and 25%, respectively. But stocks to buy for an earnings release are rarely that consistently generous.Market sentiment, quarterly results -- both on an absolute basis as well as compared to consensus and whisper views -- and guidance from the company all play key factors in how investors react to earnings. And which of those influences holds the most weight with any given report can be elusive until after the fact. Still, it's not time to simply put the cash under the mattress when it comes to stocks to buy in front of earnings.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) With caveats in place, when a company is a market or industry leader, has proven earnings power and has constructively put in the time on the price chart, earnings can act as a positive catalyst. And right now three stocks of this caliber are in our sights for this type of investment opportunity. Stocks to Buy: Microsoft (MSFT)Microsoft (NASDAQ:MSFT) is the first of our stocks to buy in front of earnings. The tech giant has been firing on all cylinders the last couple years and there's little reason to think this bullish trend won't continue. MSFT earnings are slated for next Thursday evening.Since reporting last quarter, shares of Microsoft are up about 4.5%. That leadership from the world's largest company compares favorably to the broad-based S&P 500's flat performance over the last three months. But the story for MSFT stock gets even better on the price chart.Over the last six months shares of Microsoft have established a solid base-on-base pattern. There was an ill-timed breakout attempt from the pattern in September as the market began to aggressively selloff. Now after pulling modestly back within the base to form a confirmed weekly doji low with a supportive-looking bullish stochastics setup, MSFT is a stock to buy today. AT&T (T)AT&T (NYSE:T) is the next stock to buy. For many investors T is a widows-and-orphans stock with its defensive business and hefty yield of around 5.5%. But today's AT&T is much more.T stock has aggressively reshaped its business to grow and compete in today's market against competition from Disney (NYSE:DIS), Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN). And it's my guess T earnings are going to make good on recent relative strength. Plus it has a flat base or high handle formation which has followed a massive corrective cup-shaped base. * 7 Beverage Stocks to Buy Now Buying T stock in front of earnings is simple. I'd recommend waiting for shares to trade above nearby pattern resistance of $38.22. With the company set to report on Oct. 28, my guess is the early bird will get the worm. The earnings reaction should fuel additional gains from this key breakout. eBay (EBAY)EBay (NASDAQ:EBAY) is the last of the stocks to buy in front earnings. The formidable online auction and commerce platform reports next Thursday night and there's reason to believe shares are on sale ahead of the EBAY earnings release.EBAY stock has formed a large corrective cup that's nearly two years in the making. The healthy base is complimented by a handle pattern in the right side of the base that's put together a pivot low, confirming an uptrend above the 50% retracement level. It's a powerful combination. Coupled with a hammer candlestick and oversold stochastics on the verge of a bullish crossover, EBAY stock is ripe for buying in today's auction.Investment accounts under Christopher Tyler's management do not currently own positions in 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 market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post 3 Stocks to Buy Before Earnings appeared first on InvestorPlace.
EBay (EBAY) 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.
(Bloomberg) -- MercadoLibre Inc. will “for sure” invest more than 3 billion reais ($718 million) in Brazil next year with a focus on financial services and logistics, Chief Operating Officer Stelleo Tolda said.MercadoLibre, the e-commerce pioneer in Latin America now worth $28 billion, plans to invest more in its financial services and payments unit while opening more distribution centers and seeking partnerships to cut delivery time further, Tolda said in an interview at Bloomberg’s Sao Paulo office.The early guidance on outlays for next year follows investments of 2 billion reais in Brazil last year and 3 billion reais this year. As competition heats up from the likes of Amazon.com Inc. and local retailers including Magazine Luiza SA and B2W Cia Digital, MercadoLibre is defending its market share of about 33% and looking to get customers to lean heavier on its services for day-to-day shopping and payment solutions, Tolda said.“We strongly believe in the growth potential of this business, so it’s too early to focus only on profitability,” said Tolda, who met MercadoLibre’s founder Marcos Galperin at Stanford University in the late 90‘s and has been leading the Brazil business since the start, 20 years ago.MercadoLibre, based in Buenos Aires but with operations in 18 countries and shares trading in New York, is offering same-day delivery in Sao Paulo and looking to expand its next-day delivery to at least 16 cities in 2020.The firm currently operates two distribution centers near Sao Paulo and will open facilities in other regions, to speed up its delivery in a country larger than the continental U.S.Brazilian e-commerce has more than doubled to 68.8 billion reais between 2013 and 2018 and should almost double again through 2023, according to market researcher Euromonitor International.The newest focus for the company is on the fast-moving train of fintech services courting large parts of the population without bank accounts.MercadoPago, the payments platform, has been leading growth at the company. The number of transactions more than doubled year-on-year in the second quarter with the value surging 47% to $6.5 billion. That compares to $3.4 billion in gross merchandise value from the marketplace.“We see opportunities not only in payments, but also in all financial services, including credit, investments and eventually insurance,” Tolda said. “MercadoPago is also the way through which we believe we’ll have higher recurrence in people’s lives.”MercadoLibre needs to invest in marketing for the MercadoPago brand and search out companies to provide payment solutions and individual customers to use the virtual wallet. Offering payment with cards as well as with QR codes, MercadoPago has already cut deals with a wide variety of brick-and-mortar companies in Brazil such as gas stations, drugstores and the Sao Paulo subway.MercadoLibre doesn’t plan to spin off the financial products unit, which it sees as a way to increase interactivity with customers and attract shoppers into its e-commerce platform, Tolda said. Currently, the average Brazilian e-commerce consumer buys an item per month and MercadoLibre wants to intensify the frequency of purchases to at least once a week, Tolda said.The company recently opened new categories of no-gender fashion and sustainable products in its e-commerce platform to attract younger consumers. It also plans to expand next-day delivery to 16 larger cities, from eight currently, after closing a deal with the cargo unit of airline Azul SA that could help reduce its dependence on the country’s post offices.MercadoLibre has surged 93% year-to-date to $566 on the Nasdaq. That compares to 18% for Amazon, 28% for Alibaba Group Holding and 39% for EBay Inc.After raising $1.9 billion earlier this year, including a big chunk of it from PayPal Holdings Inc., MercadoLibre is focusing on investment in its core businesses rather than any bold new acquisitions, according to Tolda. Talks are ongoing with PayPal on how to collaborate in several areas despite being competitors.“Theirs is a traditional online payment model, and we’re seeing even greater potential offline than online,” with MercadoPago, Tolda said. “It’s an interesting path, this idea of ‘frenemy,’ that exists in the technology market.”To contact the reporters on this story: Fabiola Moura in Sao Paulo at firstname.lastname@example.org;Vinícius Andrade in São Paulo at email@example.comTo contact the editors responsible for this story: Daniel Cancel at firstname.lastname@example.org, ;Nick Turner at email@example.com, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Since it was spun off from online marketplace eBay (NASDAQ:EBAY) in July 2015, PayPal (NASDAQ:PYPL) has consistently delivered the goods. This year has been no different, with PayPal stock gaining nearly 24% since this January's opening price.Source: JHVEPhoto / Shutterstock.com Over the years, I've generally taken a bullish stance on PYPL stock. As a digital-payments processor, PayPal has the distinct advantage of being indefinitely relevant. In recent years, we have witnessed the rise and surging interest in alternative payment vehicles, such as cryptocurrencies. More likely than not, this trend will continue to progress.In addition, this underlining thesis behind PayPal stock aligns naturally with current behavioral trends. According to a Pew Research Center report, "Roughly three-in-ten U.S. adults (29%) say they make no purchases using cash during a typical week, up slightly from 24% in 2015."InvestorPlace - Stock Market News, Stock Advice & Trading TipsInterestingly, Pew noted that as income levels rise, so does eschewing cash for digital payments. Logically, this makes perfect sense. Those with higher income tend to have higher education levels, and therefore have access to new technologies. Given that saving time is more of a concern than saving money for more affluent individuals, they're more willing to advantage digital payment solutions. Naturally, this benefits PYPL stock. * 7 Tech Stocks You Should Avoid Now Not surprisingly, millennials love anything to do with digitalization. Since they represent the largest workforce in the U.S., the compass for PayPal stock is appropriately calibrated.However, what is surprising is that older generations are also embracing the conveniences of digitalization. When I look at PYPL stock from a wide angle, the increasing adoption of alternative payments is what keeps me bullish.That said, the third-quarter PayPal earnings report is around the corner, and that's not necessarily great news. Management Must Control the Narrative of the PayPal Earnings ReportOn paper, the upcoming PayPal earnings report - scheduled for release after the close on Oct. 23 - should result in a per-share profitability beat. Going back to Q1 2016, the company at worst has met expectations for earnings per share.This time around, covering analysts expect EPS to come in at 67 cents. This is firmly near the upper end of the estimate spectrum, which ranges from 52 cents to 71 cents. In the year-ago quarter, PYPL delivered an EPS of 58 cents. A 15.5% earnings lift year-over-year is well within reason relative to prior performances.On the revenue front, consensus forecast pegs sales at $4.4 billion. As with earnings, analysts are incredibly optimistic for growth, with revenue estimates ranging from $4.2 billion to $4.4 billion.But does all this mean that PayPal stock is an easy buy? Unfortunately, recent news items make the narrative severely complicated.In a much-publicized fallout, PayPal dropped out of Facebook's (NASDAQ:FB) Libra cryptocurrency project. Later, eBay, Stripe, Mastercard (NYSE:MA), Visa (NYSE:V), and Mercado Pago followed suit.Also, in late September, PayPal announced Chinese government approval to buy a controlling stake in Gopay Information Technology. This groundbreaking event marks the first time a foreign entity has entered China's payment services market.But most critically, PayPal lost $228 million in Q3 because of its investment in Uber (NYSE:UBER), which has been nothing short of volatile.Optically, these news items give the impression that PayPal is biting off more than it can chew. Plus, with its Uber losses, PYPL confirms that some of their bets probably won't pan out for some time. Therefore, the PayPal earnings report in Q3 will be about more than the numbers; investors will look to management to re-instill confidence in a suddenly shaky organization. It's Time to Play the Tactical Game with PayPal StockDespite my belief in the longer-term picture for PYPL stock, I've got to look at reality. For the immediate time frame, the markets are bearish on shares. In this situation, the last thing I want to do is fight the tape.Technically, PayPal stock has dropped below the 50-day and 200-day moving averages (DMAs), barometers for nearer-term and longer-term sentiment, respectively. I also believe it's an important clue that the price action has stumbled at the 50 DMA in the past two months. Upside resistance is strong, which implies a future downward trajectory.But even if PayPal stock absorbs a rough outing following Q3, I won't take that as a net negative. Instead, it provides a "time capsule" opportunity for those who wanted to jump aboard but didn't for whatever reason. Although the nearer-term picture is troublesome, the forward outlook is among the brightest in the tech space.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Distractions Ahead of Q3 Makes PayPal Stock Risky appeared first on InvestorPlace.
Plans for Facebook’s proposed “stablecoin,” Libra, appear to be unraveling. This is hardly surprising, given growing awareness of Libra’s potential adverse consequences. If it offers anonymity to its users, Libra will become a platform for tax evasion, money laundering and terrorist finance.
Here's an exercise for you. How much would you pay for $100 million per year of operating cash flow and maybe $1.4 billion in sales, growing at about 20% per year? Would you pay 10 times that revenue? Maybe 20 times that revenue? Certainly, you wouldn't pay 30 times that revenue. But that's almost precisely what investors are being asked to pay today for stock in Shopify (NYSE:SHOP), the Canadian e-commerce software house.Source: BalkansCat / Shutterstock.com Shopify's market cap is $39.8 billion, about 29.5 times its estimated 2019 revenue, based on the $680 million that came in for the first two quarters. Please let's not talk about earnings. There aren't any.So without any earnings, why the insane valuation? It's because of one magic word.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Magic Word is 'Amazon'Shopify is said to be competing directly with Amazon (NASDAQ:AMZN).How does a Canadian company with $380 million in sales for its most recent quarter compete with an e-commerce and cloud giant that earned $2.6 billion on revenue of $63.4 billion in its most recent quarter?Here's how The Observer put it just last month: "Shopify Overtakes eBay as Second Biggest Shopping Site After Amazon."How exactly has Shopify overtaken eBay (NASDAQ:EBAY)? The Financial Times notes that Shopify's market cap is now bigger than that of eBay. The market cap of eBay is $32.5 billion.But does this make Shopify bigger than eBay? It doesn't. Revenue for eBay in the second quarter was $2.7 billion. That's seven times more than Shopify brought in. Also, eBay had earnings of $403 million in its second quarter, or 46 cents per share. Is SHOP Stock a Bargain?What's even crazier is that we're supposed to consider Shopify a bargain now because the shares recently pulled back from their all-time high of $406, achieved in late August. This came after it priced a secondary offering of stock at $317.60 to help strengthen its balance sheet.Shopify needs to strengthen the balance sheet to pay $450 million for 6 River Systems, which makes robotic carts for warehouses. This will be added to the Shopify Fulfillment Network, announced in June, which mainly consists of a web page and a lot of promises.6 River Systems had just gone through a $25 million Series B funding round. The robots, dubbed Chuck, are the size of a big shopping cart and lead workers around the warehouse, rather than following them. You Don't Have to Believe MeI admit to being in the minority of InvestorPlace contributors in my suspicions about Shopify. Ian Cooper recently called it a "strong buy." David Moadel recently called this "the best time" to buy.What about my track record? I've been calling Shopify a bubble stock for almost two years, since it was trading in the mid-$70 range. In June I called the shares "my favorite mistake," claiming it was rising on a short squeeze. At the time, 28% of its shares were being held by shorts. The most recent percentage, according to Fintel, is 31%. By way of comparison, Tesla (NASDAQ:TSLA) has a short interest of 20%. The Bottom Line on Shopify StockThe bottom line here is that I've been consistently wrong on Shopify, and I might be wrong again.A few of InvestorPlace's writers are starting to get out their oxygen masks in the thin air and lean my way. Josh Enomoto says "don't let the red ink tempt you." Brad Moon says it's "time to be cautious."You can't make money on the stock you don't buy. I missed Shopify on the way up.I'm content to miss it on the way down, too.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Ignore the Crowd and Avoid Shopify Stock appeared first on InvestorPlace.
(Bloomberg Opinion) -- It’s just as well that big companies that process and facilitate payments have quit Facebook’s Libra cryptocurrency project, fearing a regulatory backlash. If Facebook really wants to bring financial services to the “unbanked,” it should try doing it on a smaller scale than these companies’ presence promised. And even then, the probability of failure will be high.It’s clear why PayPal Holdings Inc., Stripe Inc., eBay Inc., MasterCard Inc. and Visa Inc. have decided not to join the Libra Association, which Facebook has been organizing to run the proposed digital currency. They took seriously the recent warning of Senators Brian Schatz of Hawaii and Sherrod Brown of Ohio that because of their membership, they could “expect a high level of scrutiny from regulators not only on Libra-related payment activities, but on all payment activities.” The concern is that a cryptocurrency used in conjunction with encrypted messaging could potentially be used in illegal transactions, and anyone involved in creating such an opportunity would be suspect.U.S. regulators are perfectly capable of scuppering major cryptocurrency projects. On Oct. 11, the U.S. Securities and Exchange Commission announced it had stopped Telegram Group Inc. from distributing digital tokens, so-called Grams, to the investors who contributed $1.7 billion to the creation of the cryptocurrency last year. These include major U.S. venture capital firms such as Benchmark, Sequoia and Lightspeed. The same could easily happen to Libra.That’s the problem with starting so big. Telegram’s token offering was the biggest ever recorded. Facebook made a big announcement on Libra and presented a list of partners that read like a Who’s Who of the payments industry. They envisaged global launches for their cryptocurrencies. Of course regulators and politicians were alarmed.To avoid this kind of outcome, Facebook — whose stated goal with Libra is to offer affordable payment services and loans to people currently priced out of the financial services market — could have tried the strategy that got results for one of its remaining partners, Vodafone Group Plc. Vodafone launched M-Pesa, Kenya’s storied “mobile money,” in 2007, and one of the project’s major assets was the Kenyan central bank’s consent to the launch without any formal regulation. Vodafone’s local cellular operator, Safaricom Plc, quickly built up a network of stores where people without bank accounts could pay in and receive cash, and old-fashioned mobile phones began to double as wallets for transfers and purchases. The lack of regulatory intervention and the large physical network, fed by relatively generous commissions, made sure that by 2019, M-Pesa claimed 37 million active customers in seven African countries. But attempts to transplant the service to many other markets have failed. Vodafone has closed M-Pesa in India (in part because of regulatory obstacles), South Africa (low customer interest), Romania and Albania (apparently it was unprofitable). Vodafone discovered there was no cookie-cutter solution. In different countries, lenders, retailers and mobile operators offered competing services, and regulatory scrutiny varied. To find countries in which to launch such an electronic money service, one would need to go down the list of nations with large populations of the unbanked. The top 20, according to the World Bank, includes big ones, such as China, India, Indonesia and Brazil.But in most of these countries, people are already using some form of digital money in lieu of dealing with traditional financial institutions. That’s why the list of 20 countries with the smallest percentage of people who have recently made or received digital payments looks completely different.In other words, it’s not easy to find a country where a lot of people have neither a bank account nor access to other kinds of financial services. And then there’s a chance that the cash-using population of a specific country wants to stay that way. One possible reason M-Pesa didn’t quite work in Albania and Romania is that these countries have large informal economies. With up to a third of gross domestic product “in the shadow,” traceable electronic transactions are unattractive compared with cash. These difficulties of finding good target markets, and ones with friendly regulators to boot, should explain Facebook’s desire to launch at scale, to throw everything at the wall and see what sticks. But the risk with this approach is that the idea of offering cheap financial services to the unbanked begins to look like a smokescreen for building a huge unregulated bank in the developed world — just what regulators in Europe and the U.S. fear the most.Instead of pushing ahead with the remaining partners and risking the same kind of trouble as Telegram, Facebook should go back to the drawing board and start thinking of smaller projects tailor-made to specific countries’ requirements. Expansion would be slow, and there would be failures and miscalculations along the way, but regulators in each market might be easier to persuade that the project’s goals aren’t nefarious. To contact the author of this story: Leonid Bershidsky at email@example.comTo contact the editor responsible for this story: Tobin Harshaw at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Mnuchin says Treasury, and not just the senators who sent letters, also warned Libra Association members about their involvement.
(Bloomberg) -- The Libra Association hasn’t officially launched but has already lost a quarter of its membership, as Booking Holdings Inc., an online travel company that operates websites including Kayak.com and Priceline.com, joined Visa Inc., Mastercard Inc. and four other companies in leaving the controversial cryptocurrency project spearheaded by Facebook Inc.With the departure of Norwalk, Connecticut-based Booking, the Libra Association now has 21 founding members remaining of the original 28 companies that signed on to the association in June. PayPal Holdings Inc., Stripe Inc., MercadoLibre Inc. and EBay Inc. in the past two weeks have also said they would abandon the project.The remaining members of the Libra Association, a nonprofit that would manage the cryptocurrency, planned to meet Monday in Geneva, Switzerland to finalize its governing charter and initial membership.Libra came under intense scrutiny from lawmakers and regulators as soon as Facebook announced the project. Regulators warned that the cryptocurrency, originally set to launch next year, could be used by criminals if not properly monitored, while lawmakers pilloried Facebook’s track record at hearings in July with Libra co-founder David Marcus.Officials in some countries, including Germany and France, announced that they would ban Libra, saying that the currency could be a threat to monetary policy, among other concerns.Visa, Mastercard and Stripe left the project shortly after receiving a letter from Democratic senators Brian Schatz of Hawaii and Sherrod Brown of Ohio, warning that they could face increased scrutiny if they stayed on board.Brian Armstrong, the CEO of Libra-member Coinbase Inc., on Sunday said the pressure felt “un-American.” “Why the need for the intimidation tactics? This would be called anti-competitive/monopolistic behavior if any private company did it,” Armstrong wrote on Twitter.In the face of the departures, Libra has said more than 1,500 companies have expressed interest in joining the association and that the currency wouldn’t launch until it satisfied regulators’ concerns.Developers have continued to advance the open-source code that would underlie Libra. However, Visa, Mastercard and PayPal could have provided critical experience in navigating U.S. financial regulators’ concerns, making their departures particularly painful. Booking Holdings, which has a market capitalization of more than $84 billion, was among the only remaining large, publicly held companies left in the project.Facebook Chief Executive Officer Mark Zuckerberg plans to testify next week at the House Financial Services Committee on Libra, among other topics.Representatives for the Libra Association didn’t immediately respond to a request for comment.\--With assistance from Kurt Wagner.To contact the reporters on this story: Joe Light in Washington at email@example.com;Olivia Carville in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sara Forden at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Internet boom certainly provides a pretty good metaphor for what's been happening to the cannabis space. In the early phases, the optimism was contagious (remember how adding a .com to a company name could greatly boost the stock value?). But markets can only propel the bullishness for so long. Eventually, there is a plunge, which can be brutal.Source: Jarretera / Shutterstock.com Unfortunately, when it comes cannabis stocks, we're in this stage right now.Now ultimately, I think there will be some huge winners - and yes, many operators that will simply be consolidated or go bust. This will accelerate as it gets more difficult to raise money.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo which cannabis stocks to focus on? Which ones will be the long-term winners? Well, Tilray (NASDAQ:TLRY) stock looks interesting. True, I have been negative on the company for some time. But given the much more attractive valuation, TLRY stock should get some consideration for a buy. * 10 Super Boring Stocks to Buy With Super Safe Returns The company has the advantage of having raised substantial amounts when the markets were bubbly (this was done primarily with convertible securities, which will likely not be turned into stock any time soon).Tilray also has diverse revenue sources, which span adult-use cannabis, food products and medical treatments. Oh, and it has been fairly disciplined with its spending and mergers and acquisitions deal-making: just take a look at its acquisition for Manitoba Harvest, which has been a nice catalyst for growth. Negative Sentiment Is Off the ChartsKeep in mind that - for the most part - it's hard to find many cannabis bulls anymore. Besides, when scanning through the headlines, it seems that a majority of analysts are negative.To get a sense of how extreme things are, look at what happened this week with the announcement of preliminary fourth-quarter earnings from HEXO (NYSE:HEXO). Unfortunately, it fell significantly below expectations (which, by the way, were already depressed).The company's Q4 forecast now calls for a range of 14.5 million CAD to 16.5 million CAD. As for the analysts' consensus, it was a much more robust $24.8 million. HEXO even withdrew its outlook for fiscal 2020 (it had previously forecasted revenues of 46.5 million CAD to 48.5 million CAD).On the news, the stock sunk by more than 22%. Investors also sold off many of the other top names in the sector. For example, Tilray stock dropped over 13% to $20.65, putting the year-to-date return at a miserable -71%. In fact, TLRY stock is not far off from its $17 initial public offering price (the company went public in July 2018).But there are really few signs of serious deterioration of Tilray's business. In the latest quarter, revenues soared by 371% to close to $46 million.True, the company continues to lose money. But this is expected as it needs to scale operations to keep up the growth ramp. Bottom Line on Tilray StockOf course, predicting a bottom is a dangerous business! After a major boom, the plunge can easily go to the extreme.So, with Tilray stock, it's probably best to average into a position, as the volatility will likely continue. What's more, there are a handful of other top-tier cannabis stocks, like Cronos Group (NASDAQ:CRON) and Canopy Growth (NYSE:CGC), that are worth considering as well.Again, as with the dot-com implosion that happened nearly 20 years ago, the best strategy then was to focus on the major brands like eBay (NASDAQ:EBAY) and Amazon.com (NASDAQ:AMZN). And I think the same is likely to be the case with today's cannabis stocks.Tom Taulli is the author of the 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 * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Has Tilray Stock Finally Hit Rock-Bottom? appeared first on InvestorPlace.
Let's be fair to Alibaba (NYSE:BABA). Shares of the Chinese eCommerce giant giant are up about 26.20% year-to-date and that's nothing to scoff at. That puts Alibaba stock ahead of U.S.-based rival Amazon (NASDAQ:AMZN) by nearly 1,100 basis points.Source: BigTunaOnline / Shutterstock.com Add to that, based on traditional earnings metrics, Alibaba is the less expensive of the two stocks.Though Alibaba's current U.S. footprint can best be described as small but growing, the shares have been hamstrung by the ongoing trade row between the U.S. and China. Alibaba stock, as of Friday Oct. 11, resides more than 11% below its 52-week high with a nasty June tumble accounting for most of that loss.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately, since the June lows, Alibaba has made a series of higher highs and higher lows, indicating a return to old highs and beyond is possible. In positive, broad fundamental news, Alibaba jumped 4.14% last Friday on volume that was more than 25% above the daily average amid headlines that the world's two largest economies are finally making positive headway on what has been a strained trade relationship. * 10 Super Boring Stocks to Buy With Super Safe Returns Speaking of positive fundamentals, not only are Chinese retail sales growing, indicating the world's second-largest economy is doing an admirable job of turning toward domestic consumption, but e-commerce there is booming and that's long been one of the primary catalysts for BABA stock.Online sales there are expected to swell 30% this year to $1.989 trillion, according to eMarketer."By the end of this year, China will have 55.8% of all online retail sales globally, with that figure expected to exceed 63% by 2022," said the research firm. "Alibaba will lead ecommerce sales in China with a 53.3% share." What Makes Alibaba TickAs seasoned investors well know, as China's equity market has grown, so have comparisons of companies there to American counterparts and many of those comps are drawn from the consumer cyclical sector.For its part, Alibaba is often compared to Amazon and though accurate to an extent, the Chinese company also has some Alphabet (NASDAQ:GOOG GOOGL) in it, some eBay (NASDAQ:EBAY) and even some FedEx (NYSE:FDX).According to the Harvard Business Review:"[Alibaba is] what you get if you take all functions associated with retail and coordinate them online into a sprawling, data-driven network of sellers, marketers, service providers, logistics companies, and manufacturers," "In other words, Alibaba does what Amazon, eBay, PayPal, Google, FedEx, wholesalers, and a good portion of manufacturers do in the United States, with a healthy helping of financial services for garnish."Indeed, Alibaba stock and the company itself are growth stories. Just over five years removed from its initial public offering (IPO), Alibaba is a $452 billion company, making it one of the seven most valuable Internet firms in the world.However, Alibaba stock trades at just 24.51x forward earnings. Amazon, which is also among the world's seven most valuable internet firms, trades at more than 45x forward earnings."Why has so much value and market power emerged so quickly? Because of new capabilities in network coordination and data intelligence that all these companies put to use," according to Harvard. "The ecosystems they steward are vastly more economically efficient and customer-centric than traditional industries." Bottom Line: Alibaba Stock Is a WinnerLike Amazon does in the U.S., Alibaba faces competition in its core eCommerce market and it's reasonable to expect the company will cede some market share in online retail in the years ahead. However, the company's diversified revenue streams, impressive margins and high penetration rates should continue supporting Alibaba."Alibaba's marketplace monetization rates have generally been on an upward trend despite recent macro uncertainty, indicating that sellers are increasingly engaging with Alibaba's marketplaces and payment solutions," said Morningstar in a note out earlier this month. "Retail revenue per active user continues to outpace other China rivals, owing in part to an emphasis on higher-quality merchants."Pinpointing exactly when Alibaba stock makes its next epic move is difficult, but at current levels, it's not a stretch to say the stock is undervalued by 30% to 40%.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post With Trade Tensions Thawing, Alibaba Stock Can Be Awesome Again appeared first on InvestorPlace.
(Bloomberg) -- Facebook Inc.’s effort to create a cryptocurrency was dealt a blow on Friday after several key partners, including Mastercard Inc., Visa Inc., EBay Inc., Stripe Inc. and Mercado Pago, abandoned the project. The defections followed fierce criticism from global regulators and lawmakers, and have prompted some industry-watchers to question whether the Libra program can survive.The news comes days before the Libra Association, the group that will oversee the digital currency, prepares to convene its members and ask them to sign a charter agreement. The meeting is slated to take place on Monday in Geneva. A Libra Association spokeswoman said on Friday that the gathering will proceed as planned, and that it would announce the first list of official partners once a formal charter is signed.In a statement, the spokeswoman said the group was "focused on moving forward and continuing to build a strong association" as it worked to create "a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people."When Facebook launched plans for Libra in June, a critical part of its pitch was that major players in the payments and tech industry were supporting it. The cryptocurrency would be run out of Geneva by the organizations that comprised the Libra Association, not solely by Facebook. But now that that alliance appears to be eroding, the project’s future is uncertain."I don’t think Facebook can do this by itself," said Michael Pachter, an analyst for Wedbush Securities told Bloomberg TV. "Short of a big bank stepping in like JPMorgan, I don’t think this could ever happen."In a tweet on Friday, David Marcus, the Facebook executive spearheading the effort, said that the exit of six partners would not derail the effort. "I would caution against reading the fate of Libra into this update," he wrote. "Change of this magnitude is hard. You know you’re on to something when this much pressure builds up."Whether or not Libra implodes, the exits highlight the extreme challenges that lie ahead for the project, which if successful could have a sweeping impact on the global financial system. "It may very well fail completely," said Lisa Ellis, an analyst at MoffettNathanson. Even if it survives, progress will take much longer and "it’s likely to fall into some level of obscurity," she added.Facebook has faced fierce backlash since the company announced plans for Libra. Politicians and regulators around the world have called on Facebook to halt its progress, and some have suggested Libra could be used for illegal money laundering or trafficking schemes.Despite the scrutiny from public officials and the exodus of partners, Facebook remains committed to Libra, according to a person familiar with the matter who asked not to be identified because they were not authorized to speak publicly. Some people inside the company think the defections are partly driven by established payments providers worrying about a new entrant encroaching on their turf, the person said.In the months since its announcement, Facebook has frequently found itself in the spotlight over the cryptocurrency. Marcus went to Washington in July to testify before Congress about Facebook’s plans. Later this month, Chief Executive Officer Mark Zuckerberg is scheduled to appear before the House Financial Services Committee to answer even more questions about Libra.Earlier this week, two U.S. senators cautioned Visa, Mastercard and Stripe to reconsider their involvement in the project. Senators Sherrod Brown of Ohio and Brian Schatz of Hawaii said that Libra poses a risk to not only the financial system, but the payments companies’ broader business. "We urge you to carefully consider how your companies will manage these risks before proceeding," they said a letter to the companies.Mastercard said in a statement that it will "remain focused on our strategy and our own significant efforts to enable financial inclusion around the world," adding, "We believe there are potential benefits in such initiatives and will continue to monitor the Libra effort." Visa said the company would also continue to evaluate whether to join in Libra in the future, and that the company’s "ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations."In a statement on Friday, EBay expressed its support for the project, but said it would focus on rolling out its own payments products. “We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member,” an EBay spokesman wrote in the emailed statement. “At this time, we are focused on rolling out eBay’s managed payments experience for our customers."Payments giant Stripe, one of the most high-profile startups to sign onto the project, signaled it remained open to working on it in the future. “Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential,” said a company spokesperson. “We will follow its progress closely and remain open to working with the Libra Association at a later stage.”The Libra Association is composed of about two dozen organizations, including Facebook. A Lyft Inc. spokeswoman confirmed on Friday that the ride-hailing company remains a member. Other companies that have not signaled plans to leave include Uber Technologies Inc., Spotify Technology S.A., Coinbase Inc. and telecom providers Iliad SA and Vodafone Group Plc. PayPal Holdings Inc. dropped out last week. (Updates with David Marcus comment in 6th paragraph.)\--With assistance from Candy Cheng, Lizette Chapman, Spencer Soper and Lydia Beyoud.To contact the reporters on this story: Kurt Wagner in San Francisco at firstname.lastname@example.org;Julie Verhage in New York at email@example.com;Jenny Surane in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Anne VanderMey, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Let's take a look at what investors need to know about Facebook and some of its Q3 estimates to help us determine if FB stock might be worth buying before the social media company reports its Q3 2019 earnings results...
Defections by high-profile partners continue to plague Facebook's digital currency project, Libra. With booking holdings being the latest company to sever ties. Bryan Leach Founder and CEO of Ibotta, joined On The Move to discuss.