|Bid||104.40 x 1000|
|Ask||104.95 x 4000|
|Day's Range||103.91 - 105.46|
|52 Week Range||74.66 - 121.48|
|Beta (3Y Monthly)||0.87|
|PE Ratio (TTM)||49.88|
|Earnings Date||Oct 16, 2019 - Oct 21, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||126.72|
Jim Cramer thinks that Square stock is worth owning. The stock has upside potential. According to Cramer, investors should buy the stock when it falls.
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.
This top performing mutual fund seeks growth stocks that fuel what a fund manager calls one of the most innovative times in history.
SAN JOSE, Calif. , Sept. 19, 2019 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has priced its offering of $5.0 billion aggregate principal amount of senior notes, consisting ...
Bay Area activist Shannon Coulter announced the campaign, Force the Issue, on Tuesday in order to pressure 900 large, publicly traded companies to stop requiring their employees to sign off on arbitration clauses agreeing not to sue.
(Bloomberg) -- PayPal Holdings Inc. kicked off its debut bond offering as the investment-grade market reignited.The digital payments company sold $5 billion of senior unsecured bonds in four parts. The longest portion of the offering, a 10-year security, will yield 1.1 percentage points above Treasuries, after initially discussing between 1.3 and 1.35 percentage points, according to a person with knowledge of the matter, who asked not to be identified as the details are private.Amid a Federal Reserve meeting Wednesday, investment-grade borrowers stood down for the first time this month, halting what’s been a blistering pace of issuance. Activity picked up speed Thursday, with PayPal and five other high-grade borrowers tapping the market.Investors had put in orders for more than $20 billion of Paypal bonds at noon in New York, according to people familiar with the demand. The company has about $3 billion of debt outstanding between loans and other credit facilities, which the bond offering -- the company’s first -- will help refinance. The remainder of the proceeds will be used for general corporate purposes, which could include other refinancings, share repurchases and possible acquisitions, among other uses, according to a statement Thursday.“Given the strong secular trends and credit metrics, we expect there to be demand for this defensive credit, and that the pricing will tighten,” from initial talk, CreditSights analyst Jordan Chalfin said in a report earlier Thursday.Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley managed the bond sale, per the statement.\--With assistance from Michael Gambale and Brian Smith.To contact the reporter on this story: Molly Smith in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Nikolaj Gammeltoft at email@example.com, Dawn McCartyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
SAN JOSE, Calif. , Sept. 19, 2019 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it intends to offer senior notes in one or more tranches, subject to market and customary conditions. ...
Global Payments (GPN) buys Total System and creates a market leading position in integrated payments, owned software, and ecommerce and omnichannel solutions.
Deutsche Bank is paying €50m for a 4.9 per cent stake in open-banking start-up Deposit Solutions in a transaction that values the Hamburg-based start-up at more than €1bn ($1.1bn). Deposit Solutions operates software that links retail clients and lenders, allowing banks to collect deposits from people across Europe who are not their direct customers.
SAN JOSE, Calif., Sept. 18, 2019 /PRNewswire/ -- PayPal Credit is enhancing its promotional financing offering to purchases starting at $30, making it possible for more retailers to now tap into the millions of consumers in the U.S. who already use PayPal Credit. To help more retailers attract more customers and drive sales this holiday season, PayPal Credit is extending its promotional financing offering to purchases starting at $30 for the first time. PayPal Credit is providing an easy integration with a singular line of code that will allow merchants to promote the offer across their online storefronts.
PayPal will be a stronger by forming partnerships with new e-commerce platforms as its financial ties to former parent eBay wind down, one analyst says. PayPal stock has consolidated.
Facebook (FB) plans to launch its WhatsApp payment service in India before the year wraps up, according to WhatsApp India head Abhijit Bose.
Digital payments space heats up with growing proliferation of instant and same-day deposit services being offered by JPMorgan Chase, Square, PayPal and others.
Over the past decade, Square (NYSE:SQ) has become a dominant player in the mobile payments and financing sphere. And the SQ stock price since 2015 has reflected the company's exponential growth.Source: IgorGolovniov / Shutterstock.com However, Square stock is off its recent highs, as the shares got penalized following its second-quarter earnings report in August. Year-to-date, the SQ stock price is basically flat. Now may be a good time to ask why Square shares have been falling and what we can expect in the final quarter of 2019.I believe that the owners of Square stock may have to reset their growth and share price expectations. In the coming weeks, I'd be a buyer below $55, especially if the price approaches or even goes below $50. Here are the must-know fundamental metric and price levels for SQ stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Square Stock's Q3 Guidance Failed to ImpressSquare was co-founded in February 2009 by Jack Dorsey, who is also the CEO of Twitter (NYSE:TWTR). Its payments processing business, also referred to as "payments as a service," has been a game changer in serving small businesses. To the delight of early investors, this innovative financial services company has expanded quickly and become a disruptor.SQ stock reported Q2 earnings on Aug. 1 after market close. Notably, the payment-solutions company posted better-than-expected earnings and revenues. Its total net revenue increased 44% year-over-year to $1.17 billion. * 7 Tech Stocks You Should Avoid Now And on an adjusted basis, earnings were 21 cents per share, beating Wall Street's expectation of 17 cents per share. A year ago in Q3, Square stock's adjusted earnings per share came in at 13 cents.Square's subscription and services-based revenue also increased 87% to $251 million. Gross payment volume of $26.8 billion increased from $21.4 billion year-over-year. This growth has been driven by its Cash App, Square Capital and Instant Deposit. Analysts were especially impressed with Cash App -- quarterly revenue came at $135 million.The quarterly report once again confirmed that Square stock is a high-growth equity. Such shares in general are far more volatile than market indices or mature companies. Whenever investors feel growth expectations need to be toned down, they sell the stock first and ask questions later.Investors were especially concerned by the company's lower-than-expected Q3 guidance. Its Q3 adjusted-EPS guidance of 18 cents to 20 cents trailed the average estimate of 22 cents. Square management now expects Q3 adjusted revenue to be between $590 million and $600 million as opposed to the consensus of $599 million.Square stock's losses on the bottom line are also projected to be higher than expected. And many shareholders have likely felt that for the rest of the year, SQ stock may face a rising tide. Where SQ Stock's Price Is NowThe U.S. stock market has had several big winners in the past year. However, Square stock has not been one of them. Over the past 12 months, SQ shares are down about 36%.Let us briefly remember how the Square stock price has acted over the years to have a better view on what to expect in the coming weeks.Following SQ stock's IPO in late 2015, its price surged from $9 to an all-time high of $101.15 in October 2018, as the company became a darling of long-term investors.SQ stock went on a big tear during the summer of 2018, baking in plenty of euphoria. As a result, shares have been weak since reaching its all-time high on Oct. 1, 2018. By late December 2018, SQ was hovering around $50.After a highly volatile first half of 2019, August has not been a good month for Square shares either. That's of course due to the weak Q3 guidance which has underwhelmed investors.On earnings day, Square stock closed at $80.98. The next morning, SQ shares gapped down to open at $70.80. Now the shares are hovering around $58.From a technical perspective, I'm not expecting Square stock to make another significant leg up any time soon. In the next few weeks, shares are likely to be rangebound between $50 and $55.Plus, based on options trading, many bets are being placed that Square shares will see $50 before too long.The upside momentum can build up only when long-term investors feel that the SQ stock price justifies the future growth expectations. Consequently, investors need to be careful about chasing Square stock at this point. Square Stock Is Still Richly ValuedAlthough the decline in Square's stock has improved the valuation, the shares are still richly valued.While SQ currently enjoys a head start in serving small businesses, Wall Street has questions about whether it can maintain that growth. If the U.S. economy slows, Square's growth may start to decelerate rather quickly.Furthermore, Square is not yet profitable. Its net loss was $7 million in Q2, compared to a net loss of $6 million in the year-ago quarter. The company has reported net losses in five of the last six quarters. And unless it increases its revenue, Wall Street may take the high valuation of SQ stock down even further.The expansion of Square's ecosystem also means that SQ is facing increased competition. Square must now compete with many well-capitalized companies, including the global online-payments company PayPal (NASDAQ:PYPL), transaction-processing leader Visa (NYSE:V) and Fiserv (NASDAQ:FISV), which is shaping up to become a global-payments giant.Most SQ stock holders are well aware that the shares do not trade at bargain-bin valuation ratios, especially compared to its competitors. For example, SQ's forward price-to-earnings ratio is over 50. On the other hand forward P/E ratios for PYPL, V and FISV stocks are about 30, 28 and 26 respectively.Similarly Square stock's current price-to-sales ratio is over 6.3x. Companies generate revenue from the sale of goods and services. Analysts prefer a low P/S multiple, ideally below 1x. However, a P/S number between 1x and 2x is more common. To put the metric into perspective, S&P 500's average price-to-sales ratio is 2.1x.In short, I do not think there is much room for Square stock's valuation to head higher in the final quarter of the year. Sooner or later, SQ stock's valuation and revenue growth will be more in balance. Should You Buy SQ Stock?The fintech app revolution is quickly changing the way traditional banks, credit card issuers and mobile-payments companies work with businesses as well as with their retail customers. Therefore, over the long term, I would not bet against SQ stock. In the short term, though, stakeholders shouldn't expect smooth sailing.I believe the volatility and selling in the markets will continue in September as well as in early October. Like many momentum plays, SQ stock is likely to be a battleground between two camps: investors and traders.Square is a high beta stock at 3.3. The stock market has a beta of 1.0. SQ stock's beta measures its volatility in relation to the market. In other words, Square stock rises more than the market in bullish conditions and decreases more when markets are falling. Short-term traders should exercise caution if they want to participate in SQ stock's wide daily swings.It is likely that Square shares will fall toward $50, where I'd expect SQ stock to start to stabilize and then trade sideways until the next earnings release, expected in early November.Indeed, Square stock may become one of the first momentum stocks to test the lows it saw between $49-$50 in December 2018, hence making a double bottom in technical charts. Only then the twice-touched low may become a more reliable long-term support level.In other words, I'd not rush to buy Square stock yet. However, I'd get ready to initiate a position as the price declines further, toward $50.At the time of writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Square Stock Has Been Under Pressure, May Retest $50 appeared first on InvestorPlace.
Square (NYSE:SQ) stock has fallen precipitously since my last analysis. Shares are down from roughly $80 per share in late July to $58.29 at the close Sept.13. With slowing growth, it's no surprise the stock has lost its mojo. But is the recent dip a sign that its time to buy?Source: Jonathan Weiss / Shutterstock.com In July I wrote about how Square stock could be a buy on a dip. However, with recent developments, I am less confident SQ stock can continue trading at such a high premium to its payment processing peers.How have things changed? Read on to see why it's best to avoid Square stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Sentiment Turns Bearish for SQ StockResults for the quarter ending June 30 were decent. Year-over-year adjusted revenues were up 46%. Adjusted earnings before interest, tax, debt and amortization skyrocketed from $62 million in the first quarter of 2019 to $105 million in Q2 2019. The company's Cash App business continues to scale, now generating $135 million in revenue for Q2.But investors are now writing off Square's growth potential. Adjusted revenue grew only 15% from the prior quarter. The company has built a tremendous brand with their flagship payment processing product. But in order to fuel growth, SQ needs new revenue streams to move the needle. * 7 Tech Stocks You Should Avoid Now Food ordering could have been the next frontier. The company owned DoorDash competitor Caviar. However, Square decided to throw in the towel, agreeing to sell Caviar to DoorDash for $410 million. The deal does have a silver lining, as it strengthens Square's ties to the food delivery powerhouse.Square is losing key customers. In late August, the financial press made big hay over the loss of Danish chain Joe & The Juice. This highlights Square's troubles with international growth. With U.S. sales slowing down, global growth is necessary to justify SQ stock's current valuation.Is this making a mountain out of a molehill? Joe & The Juice was likely not material to Square's revenues, but it does strengthen the bear case for Square. Square has a weak economic moat. Competitors with the capital to scale can easily steal market share.InvestorPlace's Mark Hake discussed this Sept. 12. Shopify (NYSE:SHOP) and PayPal (NASDAQ:PYPL) are inching into Square's business. Square is now playing defense. SQ is even trying to enter their respective businesses. The purchase of Weebly was obviously a play to build a Shopify-esque e-commerce platform. Cash App is Square's answer to PayPal's Venmo.With this in mind, let's see if the valuation of Square stock compensates for these risks. Despite Drop, Square Stock Remains OvervaluedSlowing growth has impacted the Square stock price. But shares continue to trade at a high valuation. Square's forward price-to-earnings ratio is 52.5. This is almost double PayPal's forward P/E of 30.3. SQ trades at a discount to PYPL in terms of its price-to-sales ratio, but enterprise value/EBITDA is another story. Square's EV/EBITDA is 718.3. This is leaps and bounds above PayPal's EV/EBITDA ratio of 40.3.But will Square stock grow into its valuation? If you take PayPal's EBITDA margin (18.3%) and apply it to Square's trailing 12-month sales ($3.95 billion), EBITDA would be $722.9 million. Apply a 40.3x multiple. This gives you an enterprise value of $29.1 billion, close to the mark of Square's current EV ($24.9 billion).There are a few caveats. With increased competition, there will be further pressure to compete on price. PayPal can easily subsidize a price war with Square. While Shopify is an equivalent size to SQ, Shopify can easily offer its e-commerce clients an in-house payment service. Growing into its valuation will not come easy.All of this makes it tough to justify the current price of SQ stock. It would be one thing if Square was the "name" in its niche. But in many ways, Square is unfortunately an "also-ran." Bottom Line: All Bets Are OffSquare stock has the potential to turn around the ship. Sales growth is slowing, but net revenue has not diminished. The company continues to make gains in the global payments marketplace. However, the recent negative sentiment is justified. In a "winner-take-all" world, even disruptors can get disrupted. Shopify is not an unsinkable ship, but it could do some damage to Square's market power. PayPal's scale brings up concerns over a potential price war.I missed the mark in my last Square analysis. I chose to stay on the sidelines, but believed SQ stock could inch higher. With growth names like Square, it's tough to predict future outcomes. For investors looking at the stock today, it's best to have the same conclusion.Square stock could be cheap down the road. But for now, the company needs leaps-and-bounds growth just to match its valuation. Things could be different when the company announces earnings again in November. But for now, steer clear of Square stock.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 * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Stay on the Sidelines as Square Stock Continues to Fall appeared first on InvestorPlace.
According to a 2018 World Payments Report, global non-cash transactions totaled $482.6 billion as of 2016. These transactions are expected to grow at a compound annual growth rate of 12.7% from 2016 to 2021, with this figure expected to be even higher in emerging markets. The rapid shift towards cashless payments has not gone unnoticed by fintech companies looking to capitalize on opportunities within this expanding space. A fintech company is any company using technology or innovative techniques to perform traditional financial services. Bearing this in mind, we wanted to take a closer look at a few stocks in this space to see which appear most poised to outperform. We used TipRanks’ Stock Screener to narrow in on the most compelling investments by filtering our search based on sector, market cap and analyst consensus. Let’s take a closer look at the results. Square Inc. While investors have expressed concerns over Square’s (SQ\- Get Report) increasing number of competitors, some analysts argue its payments ecosystem, in which funds get cycled through and repeatedly generate transaction fees, will drive substantial long-term growth. Square’s business is comprised of its traditional payments segment as well as its subscription and services segment, which includes its Cash App that lets users send money directly to one another. Despite the fact that shares have declined 7% over the last month, SQ remains fundamentally strong based on its core payments growth. According to its August 1 Q2 earnings release, gross payment volume (GPV) jumped 25% year-over-year. While this figure represents a slight deceleration as SQ has gained market share and grown off a smaller base, the company stands to maintain its GPV growth levels based on further expansion of the eCommerce market (according to U.S. consensus data), increased digital payments and its competitive pricing for small and medium sized businesses (SMB). SQ’s subscription and services segment has also witnessed an 87% year-over-year gain thanks to its investments in expanding its two-sided payments ecosystem and new products. These products include its Instant Deposit, Cash Card, Capital, Payroll and omnichannel services from Weebly and Zesty. Adding to the good news, SQ announced during the earnings release that it was selling its food delivery business, Caviar, to DoorDash for $410 million. This sale should help boost the company’s cash flow. Needham analyst Mayank Tandon tells investors that as the ecosystem expands and the business scales, EBITDA margins can reach mid-30s long-term, consistent with the mature payments processors. He adds, “SQ trades at about 8x our EV/FY20 revenue estimate. While the multiple is higher than traditional payments companies, we believe it is reasonable when comparing it to the 9.5x median valuation of other open-ended payments/software growth stories.” As a result, the five-star analyst reiterated his Buy rating and $90 price target on September 12. He believes shares could surge a massive 54% in the next twelve months. Wall Street is divided when it comes to Square. With 10 Buy ratings, 8 Holds and 3 Sells assigned in the last three months, the fintech is a ‘Moderate Buy’. Its $79 average price target implies 35% upside potential, the highest out of the three stocks on our list. Paypal Holdings Inc.While PayPal (PYPL\- Get Report) shares have dipped 8% in the last three months, some analysts say to buy the pullback based on its strong long-term growth narrative. The pullback comes in part as a response to PYPL’s performance in its latest quarter. While the company was able to post an earnings beat on July 24, it missed the consensus estimate for revenue. Investors were also not pleased with its full year 2019 guidance. As a result of its sale of U.S. consumer credit receivables portfolio to Synchrony, revenue growth is expected to slow by 3.5 percentage points. That being said, it’s important to note that total payment volume (TPV) increased 26% year-over-year on an FX-neutral basis thanks to its digital money transfer app Venmo and person-to-person (P2P) volume.PayPal also managed to pull off a win with respect to new customers. It added 9 million new active accounts in the quarter, up 17% year-over-year. Part of this is due to its One Touch product, which is designed to make checkout faster and more convenient. The service eliminates the need to log into an account or fill out billing details, with customers able to make purchases with a single touch.Based on all of the above factors, Canaccord Genuity’s Joseph Vafi believes that the dip presents investors with an attractive entry point. “Short term, we believe the guide-down post Q2 has de-risked the story into next year. Delays in large deal integration may actually become tailwinds for growth next year. Net net, with the pullback in the stock post last quarter’s results, we see positive risk/reward in PYPL shares currently,” he explained. As a result, the 4.5-star analyst upgraded the rating from a Hold to a Buy and raised the price target from $110 to $118 on September 12. All in all, Wall Street takes a bullish stance on PYPL. It has a ‘Strong Buy’ analyst consensus and a $130 average price target, suggesting 22% upside potential. JPMorgan Chase & CompanyWhen most investors think of fintech stocks, J.P. Morgan (JPM\- Get Report) isn’t usually the first name that comes to mind as it’s often regarded as more of a traditional banking company. That being said, J.P. Morgan is making waves in the fintech space thanks to its new same-day deposits.On September 10, the company announced that it would be launching free same-day deposits for its WePay platform users that have bank accounts with the company. The service can already be utilized by certain customers and will be available on all of its platforms by the end of the year. Investors were thrilled by the news, with shares climbing 3% higher in the last three days. This is on top of the 23% it has already gained year-to-date. The excitement is due to the fact that its fintech competitors can take up to two business days to process payments and charge an extra fee for faster service.This service is part of a larger effort to make a name for itself as a fintech company. The company announced in October of last year that it was building a “fintech campus” to house over 1,000 employees in Palo Alto, California. JPM also released a digital brokerage service, You Invest, in August 2018 that includes free trades, a portfolio building tool and access to equity research.While some have expressed concerns regarding management’s September 10 announcement that it cut its full year 2019 guidance for net interest income, one top analyst believes JPM is making up for it with its focus on fintech.The company’s foray into the world of fintech lends itself to Wells Fargo analyst Mike Mayo’s conclusion that now is the time to buy JPM. As a result, the four-star analyst reiterated his Buy rating while lowering the price target from $130 to $125 on August 16. Despite the price target cut, he still believes share prices could rise 4% in the next twelve months. 6 Buy ratings and 3 Holds received in the last three months add up to a ‘Moderate Buy’ analyst consensus. Its $122 average price target indicates 2% upside potential. Discover the Street’s best-rated stocks with the Top Analysts’ Stocks tool
(Bloomberg) -- Jack Dorsey’s Square Inc. already lets customers buy and sell Bitcoin on its popular Cash App. Soon, it may let them buy and sell stocks. Square is testing out a new Cash App feature that would enable users to make free stock trades, according to a video outlining the product’s features seen by Bloomberg. While the exact date of its launch is yet to be determined, employees began testing the new feature in recent weeks, according to a person familiar with the company who asked not to be identified discussing private matters.A spokesman for Square declined to comment.The free stock trading feature would position Square as a direct competitor to fintech startup Robinhood Markets Inc., which has gained millions of customers by offering no-fee trading, and most recently garnered a valuation of $7.6 billion. Robinhood has since expanded into other offerings such as options trading and margin trading, which would not be offered in Square’s initial product, the person said. Eventually, Square’s new service and others like it could pose a challenge to more established online brokers, like E*Trade Financial Corp.“We are seeing the cadence of free trading increase and I do think that’s something the broader industry can’t dismiss,” said Devin Ryan, an analyst with JMP Securities. “As a result, the pricing in those areas will continue to move lower.”Cash App and other peer to peer payment platforms are known for having a young customer base, similar to Robinhood. If Robinhood is any indication of the interest in free trading, Square could quickly gain a lot of traction. Prior to Robinhood's launch, it had a waitlist of 1 million people. Near the end of 2018, it said it had more than 6 million users, though it's unclear how many of them are active on the platform.Square’s Cash App started out by letting users send money to friends, and has since expanded into debit cards and Bitcoin trading. While Square doesn't consistently give updates on how many people are using Cash App, the company said it had more than 15 million monthly active users as of last December. Though there isn’t an immediate path to profitability for most free financial products, the race to add more users to platforms like Cash App has been fierce, with other businesses like PayPal Holdings Inc.’s Venmo also seeing big growth.Right now, fintech companies offering such products largely make money on the interchange fees when customers use their debit cards or on fees they charge for transferring funds to banks instantly. In its most recent letter to shareholders, Square said that revenue from Cash App was $135 million for the quarter, excluding Bitcoin. In a note published earlier this month, KeyBanc analyst Josh Beck said revenue from Cash App could reach $2 billion over the next three years. (Updates with analyst quote in fifth paragraph.)To contact the author of this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Mark MilianTom GilesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PayPal Holdings Inc co-founder Max Levchin's Affirm is said to be raising as much as $1.5 billion in a combination of debt and equity, TechCrunch reported on Thursday, citing sources familiar with the matter. Josh Kushner's New York venture capital firm Thrive Capital is said to be leading the financing, with participation from San Francisco-based Spark Capital, the report said. Josh Kushner is the brother of Jared Kushner, who is a senior White House adviser and U.S. President Donald Trump's son-in-law.