74.35 -0.74 (-0.99%)
After hours: 7:59PM EDT
|Bid||0.00 x 800|
|Ask||74.38 x 1800|
|Day's Range||74.95 - 79.20|
|52 Week Range||43.72 - 101.15|
|Beta (3Y Monthly)||3.54|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2019 - May 6, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||82.94|
President, CEO & Chairman of Square Inc (NYSE:SQ) Jack Dorsey sold 103,035 shares of SQ on 03/20/2019 at an average price of $75.08 a share.
Shares of Apple (AAPL) climbed over 3.4% in morning trading Thursday as buzz builds regarding the highly anticipated unveiling of its new streaming video service that hopes to challenge Amazon Prime (AMZN), Netflix (NFLX), and Disney (DIS). The climb is part of a larger 2019 comeback, which begs the question is now the time to buy Apple stock?
From a valuation perspective, GrubHub (NYSE:GRUB) is one of the cheapest growth stocks in the market. On an absolute basis, GRUB stock certainly isn't cheap, at nearly 50x 2019 EPS estimates. But given torrid revenue growth and still-strong EBITDA margins, that multiple is reasonable. A valuation of ~5x 2019 revenue guidance looks downright cheap compared to other platform plays.Source: Shutterstock And GRUB certainly is much cheaper than it was, having dropped by more than 50% from September highs. If the company can keep growing, there's an obvious path to solid upside here, particularly in a market where many similar plays have valuation worries.At the moment, however, that seems like a big "if," 2019 guidance given with Q4 results last month was notably disappointing. Costs are rising faster than revenue, leading to lower margins. And there's an increasing amount of commentary suggesting that GrubHub is losing market share despite that spend.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Cloud Stocks to Help Your Portfolio Fly If that share erosion continues, GRUB stock probably isn't cheap enough - and maybe not close. But if GrubHub can even stabilize share, GrubHub stock can rebound sharply. Disappointing 2019 GuidanceA number of high-multiple platform stocks stumbled in the fourth quarter, including GRUB, Square (NYSE:SQ), and Shopify (NYSE:SHOP). In a stronger market in 2019, SQ and SHOP have rallied; GRUB has not.One key reason is that Q4 earnings disappointed, particularly in terms of 2019 guidance. The revenue outlook still looks reasonably strong, with GrubHub projecting 31-41% growth on the top line. But costs are soaring, leading to pressure on margins. EBITDA is guided to increase just 1-13% from 2018 levels. EBITDA margins are guided to just 18.3% - against a 26.9% figure back in 2017.That in and of itself isn't fatal to the bull case for GrubHub stock. The company is investing behind the business: sales and marketing spend nearly doubled between 2016 and 2018, for instance. But that spend should drive further revenue and profits.Operations and support spend has risen even faster, climbing 165% over the past two years. Some of that spend, however, comes as GrubHub enters new markets - which create new costs before revenues kick in.Still, there are worries that margins are going in the wrong direction, when the point of a platform business is that those margins expand as the business scales. GRUB management said on the Q4 conference call that the rate of spending increase would slow as the year went on, presumably allowing for a return to expense leverage in 2019. But the performance of GrubHub stock of late shows that investors remain somewhat skeptical. Market Share and GRUB StockThe concern at the moment is that GrubHub is making all these investments and yet still losing market share. Last week, Edison Trends reported that privately held DoorDash had passed GrubHub in market share. On Wednesday, analysts at KeyBanc Capital Markets raised more market share worries. GrubHub stock dropped 8.4% on that report.The move on Wednesday shows that investors are taking these concerns seriously. And they should. GrubHub is spending now to build out its business - and yet market share is declining. Is GrubHub giving up margin simply to run in place - at best?If that's the case, that's a problem for GRUB stock - even 50%+ off the highs. Competition isn't going anywhere. DoorDash likely will go public at some point in the near future. Uber, operator of UberEats, will execute its IPO this year. Amazon.com (NASDAQ:AMZN) whose moves have tanked GRUB stock in the past still looms.To be sure, GrubHub shouldn't be written off just yet. The company recently added Yum! Brands (NYSE:YUM) concept Taco Bell as a customer, a nice get. New markets should provide growth in the second half of 2019 and beyond. It's unlikely that growth is going to be come to a screeching halt and if it doesn't, GRUB stock really isn't as expensive as it looks. Can GrubHub Stock Rally Again?A 50x multiple to 2019 EPS estimates hardly looks cheap. But if GrubHub management is right, and spend will pull back in 2020, GRUB can get reasonably valued in a hurry. Right now, 2020 estimates are for $2.22 in EPS, suggesting 50%+ growth and a 32x multiple. Assuming growth returns that year and continues going forward, GRUB can back to $100+ in a hurry.35x 2021 EPS estimates around $3 does the trick. And even with KeyBanc's caution, the Street remains bullish: the average target price for GRUB stock remains over $100, suggesting 50%+ upside.So there is a path for GrubHub stock to provide superior returns. That will require costs to come down as scheduled in 2020 - without an attendant loss in market share. Given the potential upside, betting on GrubHub to pull that off certainly seems intriguing, at least.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post The Future of GRUB Stock Will Come Down to Market Share appeared first on InvestorPlace.
Today, Square, Inc. (SQ) announced the availability of the revamped Square Online Store and Square for Retail, two products that offer sellers the tools to have one cohesive solution to start or grow an omnichannel business. The new Square Online Store allows sellers to grow their business in person and online, with a professional eCommerce website and integrated tools including Instagram selling, shipping, in-store pickup, and more. The new product also brings the Square Online Store experience to restaurants, allowing sellers to offer seamless online ordering from their website, customized pickup times across multiple locations, and the option to easily pay ahead for online orders.
Entrepreneurs point to Oakland’s lower costs, excellent transit connections, more affordable housing and hip vibe as big draws for fintech startups.
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISV(Continued from Prior Part)Probe focuses on consideration’s adequacy A law firm led by Louisiana’s former attorney general is investigating the proposed merger between Fiserv (FISV) and
Recently, I've become increasingly convinced that Salesforce.com (NYSE:CRM) is an important barometer for the tech sector as a whole. CRM stock price isn't the only gauge investors need to watch, But Salesforce stock still seems to provide a pure look at investors' preferences.Source: Shutterstock The key reason why is that Salesforce.com 's story is reasonably simple. It has a fantastic business. No one can dispute that. As CEO Marc Benioff pointed out on its Q4 conference call earlier this month, the company was the fastest enterprise software company ever to reach $13 billion in sales. (The company celebrated its 20th anniversary on Mar. 8) Its revenue growth has been almost bizarrely consistent for years now, hovering generally in the 24%-26% range. * 7 Small-Cap Stocks That Make the Grade And there really aren't any external factors that can materially change its outlook. Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) are trying to compete in customer relationship management, or CRM, software, but the dominance of Salesforce.com appears assured. A downturn in the macro cycle likely would impact Salesforce stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut given multi-year contracts and the importance of CRM software to businesses, the impact likely would be manageable. (Note that CRM's revenue more than tripled between 2007 and 2011.)Of course, CRM stock price also isn't cheap or close to it. And so Salesforce stock provides an intriguing answer to an interesting question: what, exactly, are investors willing to pay for growth?Coming off the company's fourth-quarter report, it appears investors aren't sure about the answer to that question. Once they figure it out, the rest of the market may as well. Earnings "Surprise" for Salesforce Stock (Yeah, Right)Salesforce's earnings came in nicely ahead of Street estimates on both the top and bottom lines. That surprised exactly no one remotely familiar with Salesforce stock; as I wrote before the report, Salesforce.com hasn't missed on either revenue or earnings in at least five-plus years.Yet it wasn't good enough. The company's guidance looks a bit disappointing, as Nicholas Chahine detailed after the report. The CRM stock price fell 3.7% on the day of the report and dipped almost 1% on the following day. Salesforce stock wound up falling 6% for the week, but it has since regained the majority of its losses.Bu the initial selloff seemed to confirm the risk facing CRM stock and the market. Bear in mind that the CRM stock price over time has been an exaggerated reflection of the market as a whole. It gained steadily in the first years of the decade, as the market recovered, and its gains accelerated in 2016 and 2017, as the stock market gained steam.Salesforce stock peaked in early October 2018 and then plunged as the Q4 selloff hit. CRM stock lost over 25% of its value in less than three months and took three and a half months to gain it all back, and then some.The profit-taking after the strong Q4 report seemed to suggest that investors were paying more attention to risk, but subsequently, as noted above, CRM stock regained most of the losses it had suffered this month. How High Can the CRM Stock Price Go?The issue at this point is that Salesforce stock is expensive, really expensive. It still trades at about 60 times the company's 2020 earnings guidance. At some point, investors will start worrying about the valuation of even a great business, which Salesforce.com unquestionably is.From here, it still looks like valuation fears drove the initial post-earnings reaction. Disappointing guidance is a good talking point, but again, Salesforce.com never misses analyst estimates. It's reasonably obvious at this point that the company guides conservatively. Meanwhile, Q1 and 2019 projections aside, the company also predicted that its revenue would double again by fiscal 2023.There was nothing wrong with the company's Q4 results. The issue is its valuation. But there's another aspect of Salesforce stock that could demonstrate investors' appetite for risk. Salesforce.com predicts that its non-GAAP EPS will come in at $2.74-$2.76, but that includes stock-based compensation of $1.84 .That's two-thirds of its projected net income. Back that out, and CRM stock is trading at over 172 times the high end of this year's earnings guidance. Some investors have questioned whether Salesforce stock should have such a high valuation. If more investors agree, CRM stock likely would be the first stock to take a big hit. Watch CRM Going ForwardBetween the stock's valuation and the company's share-based comp, CRM obviously is a growth stock. And the relatively simple nature of its outlook means there's one key argument regarding Salesforce stock: what to pay for the business. Bulls will argue that paying up for Salesforce stock has been a great bet for nearly 15 years. Bears will reply that, at some point, the rally has to end.That argument is a stalemate right now. It's worth paying close attention to who wins in the near-term. Where CRM stock goes, other growth stocks - like Square (NYSE:SQ), Shopify (NYSE:SHOP) and Workday (NASDAQ:WDAY) - are likely to follow.If Salesforce stock is too expensive, so is pretty much every other stock in the market; few, if any, of them have as an outlook that's as good as CRM. If investors are willing to pay up for CRM stock now, however, they'll likely be willing to stretch for other growth plays. The pre- and post-earnings movements of CRM stock price show the market isn't quite sure which side to take. At some point soon, that will change.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Keep a Close Eye on Salesforce Stock appeared first on InvestorPlace.
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISV(Continued from Prior Part)Death coincides with Square’s anniversaryOne of Square’s (SQ) founding talents died last month, according to CNBC. Tristan O’Tierney, 35, died in the
Despite its long history, Cisco Systems (NASDAQ:CSCO) may have only just begun. Cisco stock once flew so high that it briefly attained the largest market cap. After the end of the dot-com boom, CSCO languished for years.Source: Shutterstock However, CSCO stock has taken on a new identity as a dividend-paying stock focused more on software and security. As a result, it appears positioned to benefit from the growth of 5G wireless technology.Between the dividend and the emergence of 5G, CSCO appears set to become one of the essential growth and income stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks That May Be Hurt by This Year's Big IPOs Cisco: The Income StockI once had quite a history with Cisco stock. I bought shares in 1997, and I was thrilled when they had risen eightfold in just over two years thanks to the dot-com boom. Depressingly, I then watched most of my gains melt away over the next year and a half before I finally sold for a more modest profit.Much like I have become a different investor, Cisco has become a different company. The old Cisco focused on hardware. Today, the emphasis has shifted to software and security. Moreover, the Cisco of old focused on investments, buying companies, and inspiring a higher stock price. Today's Cisco trades 36% below its record high of 19 years ago and emphasizes its rising dividend.As for the payout, the company will pay out $1.40 to shareholders this year. This places the current yield at almost 2.7%. Moreover, CSCO has hiked the payout every year since the stock began paying dividends in 2011. Those who have held since 2011 earn a double-digit percentage yield. It would surprise me if CSCO stock did not become attain dividend aristocrat status (meaning 25-plus years of dividend hikes) in 17 years. Poised for More GrowthThis does not mean I advocate writing off Cisco stock as a stodgy Dow 30 equity. CSCO will produce necessary products and generate dividends. That said, I do not think Cisco will become more like Dow peers Procter & Gamble (NYSE:PG) and 3M (NYSE:MMM) than growth stocks such as Square (NYSE:SQ) or Netflix (NASDAQ:NFLX).However, I expect Cisco's products to generate more investor enthusiasm, and with that, more growth to add to the income stream. Wall Street forecasts profit increases of 18.1% this year and 10.1% the next. Moreover, CSCO has attained something unimaginable with the old Cisco stock--a low price-to-earnings (PE) ratio. Today, CSCO stock maintains a forward multiple of about 15.4.That appears cheap when considering the role Cisco will play in the 5G space. CSCO has created a "Cloud-to-Client" solution for 5G. This will affect the network at every level. It offers a seamless 5G solution end-to-end that will enhance security while optimizing speed and performance. This should drive profit increases as Cisco stock moves into the next decade--and the next quantum leap in wireless tech. Concluding Thoughts on Cisco StockExpect 5G to turn Cisco into the quintessential growth and income stock. Put simply, this is not the dot-com boom CSCO. This one-time growth stock has morphed into a more conservative, dividend-oriented company. Payouts have increased every year since 2011. With these rising payouts, it could eventually become a dividend aristocrat. Moreover, with its move into 5G, double-digit profit increases have returned.However, the real benefit may come as 5G represents the next great quantum leap in wireless technology. We already know 5G will probably equip every appliance, light fixture, and meter with wireless technology. However, the real power could come from what we do not imagine.Few could have imagined all of the apps that would come about when Apple (NASDAQ:AAPL) introduced the iPhone in 2007. Investors should expect the same, surprising level of innovation as 5G becomes more prevalent.I do not know what products will emerge. However, regardless of what creation comes about CSCO could serve as the backbone to that technology. Even beyond the financials, that function could become reason enough to buy Cisco stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Cisco Stock Is a Great Equity Buy and a Great Growth Buy appeared first on InvestorPlace.
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISV(Continued from Prior Part)$472 million in loans to small businessesSquare (SQ), which has been extending loans to small businesses for a few years now, sees more room for growth on this
All You Need to Know ahead of PayPal’s Q1 Results(Continued from Prior Part)PayPal now supports instant bank transfersPayPal (PYPL) recently introduced an instant bank transfer option for its customers, with the option initially rolling out to
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISV(Continued from Prior Part)Venmo rainbow-color variant added It’s been a tit-for-tat scenario for PayPal (PYPL) and Square (SQ) in the mobile peer-to-peer payment market. In an apparent
A Look at PayPal’s International Opportunities and Challenges(Continued from Prior Part)PayPal wooing taxpayers PayPal (PYPL) wants to cash in on tax season. Americans have until April 15 to file their federal income tax returns. A few weeks after
Square’s stock was up 150% in the first nine months of 2018. And then the stock was cut in half. Can Square regain its swagger?
President, CEO & Chairman of Square Inc (NYSE:SQ) Jack Dorsey sold 103,035 shares of SQ on 03/13/2019 at an average price of $77.35 a share.
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISV(Continued from Prior Part)PayPal helped raise $114 million for Raisin Europe-based fintech startup Raisin is buying German lender MHB Bank, Reuters has reported. Raisin, which operates a
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISV(Continued from Prior Part)PayPal secures football contract PayPal (PYPL) recently announced winning a four-year contract to handle digital payments for grassroots football teams in the
Payment Providers Seeking Fat Paychecks: PYPL, SQ, and FISVPayPal lifts loan limit for UK businesses In 2014, PayPal (PYPL) launched its small business lending service in the United Kingdom, betting that British businesses would turn to it not just
All You Need to Know ahead of PayPal’s Q1 Results(Continued from Prior Part)PayPal’s loan business faces more competition PayPal’s (PYPL) marketing expenses continued to rise quarter after quarter throughout 2018, and the trend looks set to