|Bid||116.03 x 800|
|Ask||116.13 x 800|
|Day's range||115.48 - 116.70|
|52-week range||86.62 - 121.48|
|Beta (5Y monthly)||0.94|
|PE ratio (TTM)||54.44|
|Earnings date||28 Jan 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||128.50|
(Bloomberg) -- After last year’s deluge of financial technology megadeals, investors wondered if the boom could continue into 2020. This week, Visa Inc.’s $5.3 billion acquisition of Plaid Inc. offered an answer: Yes. “Visa buying Plaid brings fintech from out in the wild to something more mainstream,” said Bain Capital Ventures’ Matt Harris. “It’s a ‘growing up’ moment for all of us,” he said, adding that the startup will now be part of the “critical infrastructure underlying the financial services industry.”Plaid’s rapid ascent—Square Inc. looked at buying it in 2018 for just a fifth of the eventual selling price—comes as large companies look to expand their offerings, and contend with fast-growing digital competition. In November, PayPal Holdings Inc. snapped up online coupon company Honey Science Corp. for $4 billion. Charles Schwab Corp. acquired TD Ameritrade Holding Corp. for $26 billion. And Fiserv Inc., Fidelity National Information Services Inc. and Global Payments Inc. did a series of major deals in 2019 that remade the corporate landscape of payment processing.Today there are nearly 60 financial technology startups valued at more than $1 billion, according to data from CB Insights, a research firm. Many are now acquisition targets, analysts say. Those include smaller players like SoftBank Group Corp.-backed unicorn Kabbage Inc., as well as giants like Stripe Inc., most recently valued at $35 billion, a price tag that makes it one of the world’s largest startups. Sanford C. Bernstein & Co. analyst Harshita Rawat, said in a note that Fiserv and PayPal could be potential bidders for Stripe.Ryan Caldwell, chief executive officer of financial data company MX Technologies Inc., suggested the Visa deal could trigger a domino effect in the industry. “The space tends to heat up when there's been one acquisition,” Caldwell said, adding that larger companies were increasingly aware of fintech’s potential. “A lot of these players definitely need to partner,” he said.Satya Patel, a partner at venture capital firm Homebrew, which was a Plaid investor, said he didn’t expect a bonanza for VCs. “As an active fintech investor, I’d like to think that its acquisition is a sign of things to come,” but added that for every Plaid there will be many more startups that are bought for much less, or go out of business. While companies like Plaid and Stripe deal with the plumbing of fintech, would-be acquirers may also seek out consumer-facing financial startups. In the consumer world, “a re-bundling of financial products is underway,” Patel said. Analysts have speculated that future potential acquisitions could involve some of the new payment plan and lending services, such as Affirm Inc., Afterpay and Klarna Bank AB.“The alternative lending space feels ripe for consolidation,” said Lisa Ellis, an analyst at MoffettNathanson. These firms would make sense for “possibly PayPal or Square, since they have alternative lending businesses already and these would extend those, even banks like a Discover,’’ she said.The rising crop of digital-first alternative banks, or “neo-banks,” saw big investment last year, and may also see an uptick in deals. Digital banking startups like Chime Inc., Revolut Ltd., N26 and Dave Inc. fall into this category. Because many of them have similar business models, experts believe the industry could be ripe for buyouts.“The neo-bank space will probably consolidate at some point,’’ Ellis said. “Many firms are burning cash just trying to buy and acquire customers.” But that might not happen right away. Said Ellis: “The valuation bubble has to pop a bit for that group to be acquired.”(Adds investor quote in sixth paragraph. )\--With assistance from Jennifer Surane.To contact the author of this story: Julie Verhage in New York at email@example.comTo contact the editor responsible for this story: Anne VanderMey at firstname.lastname@example.org, Mark MilianFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- PayPal Holdings Inc. made a big bet in November with its $4 billion acquisition of Honey, a web browser extension that helps online shoppers find the lowest prices. Now Amazon.com Inc. is warning customers not to use the tool.Shortly before Christmas, Amazon said Honey posed a security risk, which was reported Thursday by Wired. The warning perplexed some online shopping experts since the tool has been available for several years and Amazon makes no similar warnings about other browser extensions such as price tracker camelcamelcamel.com.“Amazon’s fight against Honey while letting a dozen other tools go on is confusing,” said Juozas Kaziukenas, founder of New York e-commerce research firm Marketplace Pulse. “I don’t buy their security risk message. They just want Honey and PayPal to be squashed.”There is no love lost between Amazon and PayPal, which spun off from e-commerce competitor EBay Inc. in 2015. Amazon has its own online payments service that competes with PayPal and doesn’t allow PayPal payments on its site.PayPal executives were surprised by the Amazon warning about Honey and are communicating with Amazon to resolve it, according to a person familiar with the situation, who requested anonymity to discuss an internal matter. One possibility for PayPal: alerting federal antitrust regulators since the Honey warning could be interpreted as Amazon using its size and clout to harm a competitor. Regulators have encouraged Amazon rivals to provide information about potential anticompetitive practices.If PayPal thinks Amazon’s warning is unwarranted, it can accuse Amazon of deceptive practices, requiring Amazon to explain why it did so.“As markets become more concentrated and firms grow larger, we are seeing more attempts to protect market positions and eliminate rivals through deceptive practices,” said Diana Moss, president of the American Antitrust Institute.Just before Christmas, banners started popping up on Amazon that told shoppers to be cautious when using Honey, calling it “a security risk” and “to keep your data private and secure, uninstall this extension immediately.”“Our extension is not – and has never been – a security risk and is safe to use,” a Honey spokesperson said. “We have a team dedicated to ensuring the security of our users’ information and we regularly engage expert third-party security firms to assess our security protections. If ever an individual or independent researcher contacts us about a potential vulnerability, we engage with that person to understand and remedy the issue (if there is one).”Los Angeles-based Honey has more than 17 million users, who use the extension to save money at Amazon and other online retailers.Amazon shoppers using Honey could be less inclined to follow Amazon suggestions, which don’t always direct shoppers to the lowest-priced product since it considers other factors such as shipping speed. Honey’s use could undermine Amazon’s own algorithm, diminishing the company’s power of suggestion over its shoppers. Amazon has been accused of favoring its own products over competitors, which the company disputes.In an emailed statement, an Amazon spokeswoman said: “Our goal is to warn customers about browser extensions that collect personal shopping data without their knowledge or consent such as customer name, shipping and/or billing address and payment method from the checkout page.”(Updates with antitrust comment in seventh paragraph.)\--With assistance from Matt Day.To contact the reporters on this story: Julie Verhage in New York at email@example.com;Spencer Soper in Seattle at firstname.lastname@example.orgTo contact the editors responsible for this story: Robin Ajello at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Apple (AAPL) aarecord App Store sales at the end of 2019 and strength in its services segment, which is expected to aid growth in 2020.
(Bloomberg) -- Shares of PayPal Holdings Inc. and Square Inc. gained Tuesday after separate analysts boosted their ratings on the stocks.Square has a “favorable setup,” as sentiment on the company is mixed at the moment and it can beat expectations, BofA’s Jason Kupferberg wrote in a note raising his rating to buy from neutral.“Following significant underperformance in 2019, we see an attractive entry point,” Kupferberg said. He flagged “quarterly execution” and the company’s March 18 analyst day, its first since 2017, as potential catalysts, adding that Square’s 2020 revenue guidance “looks conservative.” Square rose as much as 3.7%, its biggest gain since Dec. 16.Expectations regarding PayPal have been “reset,” Sanford C. Bernstein’s Harshita Rawat wrote in a note upgrading the stock to outperform. She flagged PayPal’s “negative revisions” in the past year, intensifying competition and “execution hiccups” related to partnerships and its Venmo payments app. Paypal gained 29% in 2019, lagging the 44% advance in the S&P 500 Data Processing & Outsourced Services Index.Now, however, Rawat sees a “compelling one-year bull case,” driven in part by higher expectations from those partnerships, such as with MercadoLibre Inc. and Uber Technologies Inc., along with PayPal’s pricing, Honey online coupon transaction and Venmo monetization. She also sees “sustained potential” for margin expansion and a “palatable” valuation. PayPal rose as much as 1.3% to its highest since September.Separately, MoffettNathanson’s Lisa Ellis wrote that --with “resignation” -- she has decided to cut Fidelity National Information Inc., Fiserv Inc., ADP, and Accenture PLC to neutral as those stocks are “likely to take a breather in 2020.”At the same time, she expects payments industry-wide volume growth of 11% in 2020 as her economic outlook for the year remains “healthy.” Payment sector operating metrics, from credit card volume growth, to enterprise IT budget growth, to U.S. employment growth, are all strong, she said.“In a sector with many strong companies and stocks, we maintain a high bar for a buy rating: An expectation of 20%-plus stock upside over the following year, with specific catalysts,” she said. Four stocks currently clear that bar: Square, PayPal, Mastercard Inc., and Visa Inc., in that order of preference, she said.Accenture slipped as much as 2.5%, its biggest drop since Oct. 22, to extend a six-day losing streak.(Updates shares in third, fifth and ninth paragraphs.)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, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
PayPal Holdings (PYPL) completes the acquisition of a private e-commerce company, Honey Science, in a bid to expand beyond the core payments business.
PayPal Holdings (PYPL) recently completes the purchase of a 70% stake in GoPay. This deal makes PayPal the first foreign firm to offer domestic electronic payments in China.
Citi (NYSE: C) and PayPal (NASDAQ: PYPL) have expanded their partnership to enable Citi’s institutional clients to make payments into customers’ PayPal digital wallets. The extended partnership brings together Citi’s large global network and client base of multinational corporations, financial institutions, and public sector organizations and PayPal’s vast two-sided network of consumers and businesses, delivering more choice and flexibility to Citi and PayPal customers.
In June, PayPal announced its Chief Operating Officer Bill Ready would be departing the company at the end of this year. Now we know where he's ending up: Google. Ready will join Google in January as the company's new commerce chief, reporting directly to Prabhakar Raghavan, SVP, Ads, Commerce and Payments.
Target is the Yahoo Finance Company of the Year for 2019. We talk with Target's executive team and experts on how the retailer made it happen in 2019 and what's in store for 2020.
It is less likely that Santa alone will drive Wall Street this season as trade tensions persist. Overall, these ETF investing trends should stay strong.