|Bid||266.58 x 800|
|Ask||266.63 x 900|
|Day's Range||265.27 - 267.10|
|52 Week Range||171.89 - 269.85|
|Beta (3Y Monthly)||1.00|
|PE Ratio (TTM)||44.56|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||1.32 (0.49%)|
|1y Target Est||280.59|
An increase in consumer spending leads to gains in payment services stocks and this momentum is likely to stay given the bullish outlook for growth in retail spending.
Do you want to open a bank account with Mark Zuckerberg and Facebook? It’s bad enough that Facebook (FB) says it won’t be paying a nickel of interest on any money that customers keep in the company’s new Libra digital accounts. There was a good reason Willie Sutton robbed banks.
(Bloomberg) -- U.S. banks might be happy to stay away from Facebook Inc.’s push into cryptocurrencies. For now.The Libra Association, the governing body for the coin, is in talks with lenders around the world to join its ranks. Banks are mostly keeping their distance after seeing tepid consumer reaction to digital wallets such as Apple Pay and regulatory scrutiny of digital currencies.“If Facebook is able to create mass adoption on this platform, then banks will want in,” David Donovan, who leads the global financial-services consulting practice at Publicis Sapient, said in a phone interview. “There’s a business decision they have to make. Facebook is saying the market is not being served well.”Banks were absent when Facebook announced Libra last week, saying that more than two dozen other companies, including payment networks Visa Inc. and Mastercard Inc., joined the project. The social-media giant said Libra will be backed by fiat currencies to provide payment services to the 1.7 billion people worldwide without easy access to banking.Facebook and its 2.4 billion active users are hard for the largest U.S. banks to ignore -- and Citigroup Inc.’s Michael Corbat has said his firm would consider joining Libra if asked. But it’s not the first time a technology giant promised sweeping changes to the payments world.Apple Inc. introduced Apple Pay in 2014 to much fanfare. Banks spent millions promoting the service and created card rewards tied to customer use of the product. In a sign of how eager they were, banks even gave Apple a cut of the coveted interchange fees they earn from each swipe of a card.But five years in, Apple Pay has struggled to take off. Large retailers including Walmart Inc. have been hesitant to accept the technology. And while consumers spent roughly $3 trillion using digital wallets in 2018, almost two-thirds of that spending occurred in China where apps like Alipay and WeChat Pay dominate commerce, according to a report from Juniper Research.“Advanced payment methods haven’t really taken hold unless they’re mandated,” Tim Spenny, a senior vice president at market researcher Magid who has consulted for Facebook and Visa, said in an interview. For him, the question is: “What is the use case or what is the pain point that would cause people to say ‘Hey, I’m going to put money into a cryptocurrency to start paying for things.’”After years spent trying to promote Apple Pay, U.S. banks turned their attention to tap-to-pay cards, which use the same technology while keeping the familiar card product. It’s a recipe that’s worked for JPMorgan Chase & Co. customers.“There’s a big segment that never used mobile wallets, but the moment they got their contactless cards, they’re starting to tap right away,” Abeer Bhatia, president of card marketing, pricing and innovation for the bank, said in an interview last month. “When they have the choice to use either, they’re overwhelmingly using tap-to-pay.”Banks have been conducting their own experiments with cryptocurrencies, such as JPMorgan’s JPM Coin, which is meant to speed up corporate payments. The largest U.S. lenders have also promoted a new real-time payments service spearheaded by The Clearing House.Regulatory ResponseThere have been cases where startups were assessed for compliance lapses. And Libra’s debut drew attention from regulators, as members of the House Financial Services Committee and the Senate Banking Committee promised hearings on the digital coin and its governance.John Smith, who used to lead the Treasury Department’s Office of Foreign Assets Control, said tech companies and the banks they work with “will be held accountable” if they violate the law.“There’s a view within the fintechs that, ‘We couldn’t possibly do the rules that big banks do because we’re trying to be quick,’” Smith, co-head of Morrison & Foerster’s national security law practice, said Friday at a conference. “There’s going to be a rude awakening.”\--With assistance from Lananh Nguyen, Michelle F. Davis and Kurt Wagner.To contact the reporter on this story: Jenny Surane in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Dan Reichl, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
"I have an Apple card. I can tell you I love using it. The Apple Card works like Apple Pay and lives within the Apple Wallet. "Most of the time I use the digital wallet, the Apple Pay, and I buy it through Apple Pay, because Apple Pay is now increasingly accepted at most places," Talwar said.
Susquehanna’s James Friedman said in a note to clients on Friday that Visa stock may be set to outperform shares of Mastercard.
It's been the prevailing wisdom that bank stocks can't rally, and so I've avoided betting on their upside. But there is an interesting sliver of the sector: fintech. These are the transactor companies and I personally favor Square (NASDAQ:SQ) and American Express (NYSE:AXP). The former, SQ stock, has been my go-to upside bet for months and it's been an easy trade.Source: Via SquareThis year, SQ stock has been out of favor on Wall Street. Suddenly, it lagged all the other major fintech competitors. Visa (NYSE:V), MasterCard (NYSE:MA) and Paypal (NASDAQ:PYPL) are at or near all-time highs while Square stock has been languishing miles away from its own. * 5 Boring Stocks to Buy This Summer Nevertheless, I remain positive on the company because the bull thesis has not changed. The world is still looking to migrate their transactions online, and SQ is part of the elite group of companies that will make that happen.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRecently Facebook (NASDAQ:FB) announced its indirect entry into the arena with their introduction of LIBRA. This further legitimizes all electronic financial transactors. So today's point is I should stay long Square stock regardless of the short-term dips for as long as the economic variables remains the same. Why To Go Long SQ StockThe macroeconomic conditions remain strong. This is in spite of the recent rhetoric that it's deteriorating. In the end, I suspect that it's not as bad as most fear.So, I am comfortable in my assumption that this environment is likely to persist for months if not years. And within it, SQ stock is still a buy right here. Luckily I have already written about buying the May dip. I sold bull put spreads and bought calls.The spreads yielded maximum gains already expiring today in my favor. My calls are already up 64% so I am letting them run. I may sell some covered calls against them to further leverage my asset. Because I sold the put spread means that I am understating my profit because my basis cost is null. It's basically a free trade from here.I am not sharing to brag but rather to offer perspective. Today's bullish SQ stock note stands alone. It still has more upside potential than downside risk this year. Currently, Square stock is in a tough zone which has been pivotal so it will offer resistance. Onus is on the bulls to plow through, and it may take a few tries.My first target for SQ is near $84 per share. But that would only bring it back to within 15% of the all-time high. This means I may be understating my target for the stock -- so the reward is pretty darn big even after the 25% bounce from $60 per share.This is not the same as saying SQ stock cheap because it's definitely not. Visa, MasterCard and PYPL are much cheaper from the traditional sense but SQ still needs time to grow into its valuation. So comparing them purely on value is wrong.Rallies rarely unfold in one straight line so there will be rough areas. I expect resistance around $76 per share. Clearly $84 will also be a challenge but if the bulls can break through it then they could finish the primary 2019 objective of $95 per share. Trading SQ StockNow that we've looked at what's above current price we also need to watch for potential pitfalls below.Depending on risk tolerance I would probably set my first stop at $71 per share. If that's lost then it could invite sellers down to $68 then $64 per share. While this is not my forecast, it is a realistic scenario that exist below especially if the geopolitical headlines cause a market wide panic sell in the next few weeks.If for any reason equities collapse I bet that SQ would find footing around $60 per share. This has been a big pivot level for 15 months. These tend to be sticky because both bulls and bears have battle histories at them. * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 The bottom line is that Square stock had been in the penalty box for whatever reason but seems to have gotten out. It is now free to resume its prior trajectory because its products and service will be in high demand for years to come. I can even ignore the short-term dip because they are part of normal price action. This is a proven management team so they will execute well on plans.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Square Stock Is Breaking Out and Running to $84 appeared first on InvestorPlace.
The Bank of England is open to letting new payment services such as Facebook’s upcoming Libra cryptocurrency hold funds overnight with the central bank, something historically limited to commercial banks.
Whether you're new to investing or just looking to adjust your holdings, here are three core companies you can use to start a winning collection.
U.S. Secretary of State Mike Pompeo will try to soothe increasing friction with India over trade, data flows and arms from Russia during a visit next week and instead focus on strategic ties between the two big democracies, officials said. Pompeo arrives in New Delhi on Tuesday for talks that are aimed at laying the ground for a meeting between U.S. President Donald Trump and Indian Prime Minister Narendra Modi later in the week at a G20 meeting in Japan.
Facebook (NASDAQ:FB) is getting into the cryptocoin business with a new currency dubbed Libra, which it says will be backed by a market basket of currencies, not just pegged to the dollar. Thus far, the announcement has proven positive for some FB stock investors, while others are far more cautious. With that said, here's a look at what we can expect from FB's Libra.Source: Shutterstock In a white paper the company said its plan is to build a blockchain that can let unbanked people around the world afford banking transactions. It announced a host of banking industry allies will support it, including Visa (NYSE:V), Paypal (NASDAQ:PYPL) and Mastercard (NYSE:MA). Facebook is hoping for $1 billion of investment for Libra, but so far only $10 million has gone into it.Facebook stock had been shooting up since the start of June on rumors of the move, a gain of almost 16% since June 3, adding $75 billion to its market cap. Speculators sold the announcement, sending the Facebook stock price down 1% in overnight trading. FB was due to open at about $186.50 on June 19, a market cap of $538 billion.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why Libra?Credit card processors risk being bypassed in the developing world by blockchain and other technologies that let people trade and access banking services at low cost. * 7 Blue-Chip Stocks to Buy for a Noisy Market India's Unified Payments Interface (UPI), for instance, handled 250 million transactions last June after the government there removed high-denomination bills from circulation. Indian transactions of under 1,000 Rupee, worth about $14.30, can now be done using UPI for the equivalent of .14 cents. Standard Visa rates are about 3 cents per transaction, and a 2.5% "discount" to merchants for settlement risks.People with worthless currencies in places like Zimbabwe and Venezuela have turned to bitcoin and other cryptocurrencies. The smallest unit of bitcoin, called a Satoshi, which is 1/100,000,000th of a bitcoin, is now worth about 3 Zimbabwe cents. But the cost of the bitcoin blockchain makes it difficult for the ordinary citizen to use it.The Libra dream is of a stable coin running on a low-cost, global blockchain, allowing those who can't afford banking services to access them and, eventually, replace weaker currencies. The hope is that buyers and sellers will be able to move Libra money with simple Facebook Messenger or Whatsapp messages as early as 2021. Libra CriticsThe idea of a banking system that's only regulated as a blockchain and bypasses governments has its critics. Economist Nouriel Roubini says there's nothing blockchain about Libra, calling the whole thing a pipedream.Fans of existing crypto coins aren't thrilled by Libra either. Facebook insists its Calibra wallet, which will hold the Libra currency, won't share data with its ad platform. But analysts hyping the play still see power in combining financial data with Facebook's user data.Libra includes a new transaction language called Move, a protocol called Byzantine Fault Tolerance meant to make permission-less transactions safe, and a new Libra blockchain database. The Libra Association itself is defined as a non-profit, but the payment companies, internet merchants, venture capitalists, communication companies and blockchain enthusiasts involved all hope to make billions by using Libra to conduct business outside the current banking system. The Bottom Line for FB StockTrading on Libra today is trading on hype and hope.Facebook's value remains rooted in its free ad-supported services, which continue to churn out $15 billion of revenue each quarter, one-sixth of which becomes net income. * 10 'Buy-and-Hold' Stocks to Own Forever Facebook's value is also based on its cloud network, with four data centers, three more on the way and more cloud capacity in Singapore.FB remains the smallest and, because of its business model, the most controversial and least stable of the Cloud Czars. (The others are Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google.) Its goal in getting into financial services is to diversify its asset base and create a truly global footprint of data centers.It's all highly speculative. But it's also highly innovative. If that's what you're looking for in a cloud investment, look for an entry point in Facebook stock.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN, MSFT and AAPL. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post Libra Opens New Purpose and Risks to Facebook Stock appeared first on InvestorPlace.
Square stock is down roughly 3.5% over the last three months as investors decide what's next for the once high-flying financial tech giant.
Delivery startup Rappi is partnering with Visa Inc to offer a prepaid card linked to its digital wallet in Brazil, expanding the product's rollout from Mexico and Colombia, where Rappi was founded, executives from the two companies told Reuters. "It is the first of many financial solutions we plan to offer to our users," Rappi co-founder in Brazil, Ricardo Bechara, said in an interview on Tuesday. Singapore-based Grab, which has a similar business to Rappi's in Asia, struck a deal with Mastercard last year.
Tech giant Facebook consulted the Federal Reserve ahead of the launch of its cryptocurrency Libra, according to Fed Chairman Jerome Powell.
The Senate Banking committee on Wednesday set July 16 as the date to hold a hearing centered on Facebook Inc.'s Libra coin, an ambitious cryptocurrency venture led by the social-media giant that is intended as a frictionless way to to make payments over the internet using blockchain technology. The hearing titled "Examining Facebook's Proposed Digital Currency and Data Privacy Considerations," comes after a number of Congressional lawmakers a day ago demanded that Facebook , which is leading the digital-payments venture, delay its attempt to roll out the cryptocurrency by the second half of 2020 as planned, while legislators review possible risks to consumers. House Financial Services Committee head Maxine Waters on Tuesday said Facebook "is continuing its unchecked expansion and extending its reach into the lives of its users." The social-media outfit is wrestling with privacy concerns following its Cambridge Analytica scandal. On Tuesday, Facebook said: "We look forward to responding to lawmakers' questions as this process moves forward." Facebook has been meeting with regulators about its cryptocurrency plans, according to the Wall Street Journal, which reported that Facebook officials have met with Securities and Exchange Commission as its prepares to kick off Libra Coin with more than two dozen partners, including payment company PayPal Inc. [sL PYPL], ride-hailing apps Uber Technologies Inc. and Lyft Inc. , as well as credit card company Mastercard Inc. among many others. Many view this crypto as a powerful way for Facebook to tap into its 2.5 billion monthly active users. Libra coin won't be owned by Facebook and will be governed by a consortium of qualified global partners, with the intention of creating an independent payment system that has the benefits of the immutable ledger technology behind cryptos but none of the price vagaries of bitcoin because the digital asset will be pegged to a basket of fiat currencies like the dollar and euro , for example. Facebook's shares finished 0.5% lower on Wednesday, while the Dow Jones Industrial Average , the S&P 500 index and the Nasdaq Composite Index all finished in the session in positive territory.
Mastercard Incorporated today announced that its annual meeting of stockholders on June 25, 2019 will also be available via audio webcast.
(Bloomberg) -- Facebook Inc.’s bid to create a new cryptocurrency has the potential to some day disrupt the global money system, analysts say. That’s if the new stablecoin, called Libra, can gain enough traction. In the meantime, they say, the plan probably means little for existing payments companies, like Mastercard Inc., Visa Inc. and PayPal Holdings Inc. -- which are all partners with Facebook.Shares of Mastercard, Visa and PayPal were mixed in mid-day Wednesday trading, ahead of the conclusion of the latest Federal Reserve meeting. Facebook was down as much as 2.1%.Here’s a sample of the latest commentary about the new cryptocurrency:Cowen, George Mihalos, Jaret Seiberg“If successful – if – it could be very disruptive to the legacy interchange model developed by the networks and banks,” Cowen analysts wrote in a note. Libra may also be “price-eroding to processors,” and serve as a “shot across the bow to money remittance firms.”Their expectations aren’t all bad for existing financial firms. Libra offers potential to bring “new money” into the digital payments ecosystem, they said, which would add to the value stored in digital wallets, like PayPal’s. That may lead to greater account adoption and transaction growth, though costs will probably come under pressure, as “Libra will in many ways be akin to using cash.”They also warned that politics pose a risk to Facebook, with Congress likely to hold hearings in the next few months. “Washington has the power to end Libra and any other cryptocurrency,” they said, by denying access to the banking system, making converting the currency to cash impossible. Congress may also adopt legislation that imposes onerous anti-money laundering and public audit requirements.MoffettNathanson, Lisa EllisThe announcement may be “most important for the cryptocurrency world,” and less so for payments companies, Ellis wrote in a note after discussing the plan with Visa, Mastercard and PayPal. “The cryptocurrency ecosystem may finally have a crypto-based system that – in design, at least – meets the major criteria required to make it functional for payments.”Libra has passed Visa, Mastercard and PayPal’s litmus tests, she said. They “see enough potential in the system to have raised their hands to participate – the first significant endorsement of the viability of cryptocurrencies from the incumbent payment ecosystem.”Citi, Ronit GhoseLibra “could be a big thing,” as the “support of Facebook and other internationally active partners will provide at minimum, a lot of public exposure to stablecoins and specifically to the Libra project.”Citi questions how regulators will respond to Libra.“For instance, Japan and Singapore consider coins pegged to a legal fiat as e-money,” while China, India and Indonesia ban dealing in virtual currencies, and Libra might fall under the SEC’s purview in the U.S. “The creation of ‘private money,’ even if fiat-linked, will raise a lot of political and regulatory debate.”Morgan Stanley, Brian Nowak, Betsy Graseck, James FaucetteMorgan Stanley analysts see little threat Libra will disrupt current global payment networks, noting Visa and Mastercard have “significant scale advantage, mature fraud detection capabilities and low cost structure.”They ask whether facilitating cross-border payments -- the only thing that’s not already present in today’s real-time banking system -- will be enough to differentiate Libra from other services, including Zelle and PayPal’s Venmo. They note that JPMorgan’s Interbank Information Network (IIN) is a blockchain that currently offers anti-money laundering and know-your-client (AML/KYC) services, with 259 banks and payments as a use case.KBW, Sanjay SakhraniThe initiative isn’t an immediate threat to payments companies, Sakhrani wrote in a note. “While the use case appears compelling for the underserved, adoption at a much broader scale will be required for Libra to emerge as a viable alternative to existing payment ecosystems.”Libra seems different than other cryptocurrencies, as it solves at least some issues, including volatility in value. Also, sponsorship from a large platform like Facebook may “help with the problem of adoption, although we believe that barriers to scale are likely still high, particularly in regions where a well-functioning payments ecosystem exists.”Wolfe Research, Darrin PellerThe most likely medium-term impact may be on “P2P, cross-border remittance, and the global underbanked,” Peller wrote in a note. He doesn’t see a near-term use case for Libra disrupting the payment system in “financially developed markets outside of remittance.”He sees opportunities for PayPal to fund Libra wallets/transactions and assist merchant acceptance, but adds that there are “long-term questions on potential pressure around e-commerce fees if Libra gains ubiquity.”To contact the reporter on this story: Felice Maranz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Janet FreundFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
There are many emerging fintech companies in which to invest. Digital payment technology is changing the competitive landscape in fields like e-commerce, payment networks and banking.
Bitcoin futures are flirting with $10K, hitting a 15-month high, despite concerns over Facebook's push into the cryptocurrency space. Yahoo Finance's Zack Guzman and Melody Hahm are joined by Kathryn Tuggle, HerMoney Editor-in-Chief, to discuss.
Consumers have many choices when shopping for credit cards so customer retention is critical. Yahoo Finance's Julie Hyman, Adam Shapiro, Jon Lonski Moody's Capital Markets Research Chief Economist and Francis Hondal - Mastercard President of Loyalty & Engagement discuss.