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This list will track the publicly traded companies that are making bets, big and small, on cryptocurrencies like bitcoin and ether. Yahoo Finance will update this list as new companies enter the crypto space.
Amid all the talk of antitrust, government regulation and cryptocurrency plans, it might be nice for Big Tech just to focus on earnings this week — unless they are bad, of course.
Benzinga has examined prospects for many investor favorite stocks over the past week. Bullish calls included leaders in the aerospace, media and retail sectors. Some bearish calls were prompted by quarterly ...
Apple, Inc. and Microsoft Corporation dominate the intersection of technology and consumer access. Even though they are competitors, each firm takes a different approach from an organizational and philosophical perspective.
Business Journal Managing Editor Rob Johnson recaps the week in Seattle business news, including exclusive interviews with three prominent education leaders and headwinds facing the Salesforce-Tableau deal.
Advanced Micro Devices Inc. is the chip maker to watch this earnings season as the company takes on Intel Corp. and Nvidia Corp. amid problems in the sector that are expected to show signs of improvement.
When PayPal Holdings Inc. reports earnings next Wednesday, it will reap the rewards of some recent bets on payments players.
As Facebook Inc. swims in criticism over its new efforts in cryptocurrency, the stalwarts of payments continue to thrive. Visa Inc. shares hit a new all-time high last week, and the card company will be looking to show that it remains on the cutting edge of digital payments when it reports earnings next Tuesday afternoon.
As Visa, Inc.’s (V) July 23 earnings release approaches, the stock is seeing explosive growth. It gained almost 36% year-to-date, double the S&P 500’s 18% increase. As the number of non-cash payments is only expected to rise, analysts and financial bloggers are saying V is in it for the long haul. Not to mention Jefferies analyst, Trevor Williams, initiated his coverage of the stock with a Buy rating and set his price target to $210 on July 18, suggesting 17% upside potential. Is this enough to convince investors to buy Visa ahead of earnings? Expectations for Q3According to consensus estimates, the company should see quarterly revenue reach $5.7 billion, a 9% gain from the prior-year quarter. Growth for client incentives is expected to fall within the range of 22% to 23% as a percentage of gross revenues. It’s predicted that Q3 will have the highest exchange rate drag for the year at 200 basis points on net revenue and 300 basis points on EPS. However, by Q4, management believes this figure will drop to 100 basis points for net revenue and 150 for EPS. For the rest of fiscal year 2019, the company raised its expectations for EPS growth to be the high end of mid-teens on an adjusted non-GAAP nominal dollar basis and the low 20s on GAAP nominal dollar basis. Visa Looks Strong Long-TermConsumers are relying more and more on non-cash payments as a more convenient way to pay. Over the last few years, non-cash transaction volume grew by 10% plus clip. Experts predict that this trend will continue. While cash payments are still common in developing countries, credit card usage is expected to rise as these countries adapt to the digital age. Global non-cash payments volume is expected to increase by at least 10%. A 20% plus growth rate is forecasted for emerging market non-cash payments volume. Visa has a majority stake in the market, with a $394 billion market cap compared to Mastercard, Inc.’s (MA) $285 billion. It controls 50% of the world’s card payments market excluding China. Its volume, transaction and revenue growth rates are expected to persist as the card payments market continues to develop. Business Model Expansion On June 25, it was announced that V is set to acquire Rambus, Inc.’s (RMBS) token services and ticketing businesses. The technology gained from this acquisition should help Visa facilitate safer and more secure payments across all of its global commerce products. SVP, global head of payment products and platforms, TS Anil said, “Facilitating safer, more secure digital transactions is core to Visa’s brand promise and central to growing electronic payments for everyone, everywhere. As the way people and businesses pay and get paid continues to evolve, the addition of Rambus’ technology will allow us to deliver greater security beyond the card to support more transactions, payments systems and participants.” In Q3, Visa continued to expand its business model with the addition of several new product offerings. In June, the company launched new installment capabilities for cardholders. Issuers and merchants can now offer installment payment options through a buyer’s Visa card, simplifying the installment process for both buyers and sellers. In that same month, Visa released its B2B payment network, allowing financial institutions to process high-value corporate cross-border payments much more quickly. The company also announced it signed up Coinbase, a brokerage for trading Bitcoin, and partnered with the Libra Association, the governing body for Facebook's (FB) new digital currency. Potential Valuation Problems Some investors are concerned that even with V’s strong long-term growth potential, its valuation is too high. The stock’s forward P/E ratio is 33.37, significantly higher than the industry’s average 24.66 forward P/E. Top financial blogger, Luke Lango, writes, “Visa’s EPS growth should run around 10%-15% over the next several years. At that growth rate, Visa’s EPS will settle around $11 by 2025. Based on a historically average 25 forward multiple and 10% discount rate, that equates to a fundamentally supported 2019 price target for Visa stock of roughly $170. Thus, at $180 mid-way through 2019, Visa stock seems slightly overvalued.” What are the Analysts Saying?Deutsche Bank analyst, Bryan Keane, reiterated his Buy rating while raising his price target from $177 to $225 on July 11. He believes share prices could jump by as much as 26% over the next twelve months. “Although the payment networks have a long runway to benefit from the secular growth of card-based transactions, the expanding market share opportunity into new account-to-account payment flows and non-interchange based revenue models are being underappreciated,” he said. Keane has an 80% success rate and a 22% average return per rating. Another five-star analyst from Baird, David Koning, expressed his confidence in V’s ability to sustain its growth rates. On July 19, he maintained his Buy rated and raised his price target from $182 to $196, indicating 9% upside potential. The analyst boasts an impressive 85% success rate as well as a 21% average return per rating. The Final VerdictDespite an expensive valuation, the Street remains bullish on Visa. The stock has a ‘Strong Buy’ analyst consensus, with 14 Buy ratings vs 1 Hold received over the last three months. It has a $192 average price target, suggesting 7% upside potential.
Big glass box buildings have become common across the world's cityscapes. But they can be energy gluttons. Enter Microsoft and Johnson Controls for IoT software, switches and controls in a venture with a UAE recycling and waste-management company.
The law passed in May and will generate roughly $1 billion for education through a tax that many prominent businesses supported.
By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger...
Microsoft Corp. blew away earnings expectations Thursday thanks to continuing strong growth from its Azure cloud offering and LinkedIn, sending its trillion-dollar valuation even higher in late trading.
Microsoft Corp. just demonstrated why it is the most valuable company in tech, surpassing expectations in all its businesses except for gaming.
Four Republican members of the House Armed Services Committee asked President Donald Trump in a letter Thursday not to delay a $10 billion Pentagon cloud contract after he threatened to look into the matter.
DEEP DIVE Here are must-read articles from MarketWatch from the past week that will make you smarter. 1. Netflix loses some of its flock Shares of Netflix (NFLX) sank 10% on Thursday on disappointing subscriber data.
Under Satya Nadella and CFO Amy Hood, Microsoft has managed to grow bigger than all of its mega-cap tech rivals without the slightest whiff of scandal.
Microsoft Chief Scientist of Experiences and Devices Jaime Teevan said that it used to take five years or more for Microsoft’s research to be launched into its products.