PayPal 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 to handle their payment transactions but also for loans to grow their operations. Now, a few years down the line, PayPal has no regrets about that decision. The company recently revealed hitting a $1.3 billion small-business-loan milestone in the United Kingdom last year. PayPal says more than 37,000 British businesses have benefited from its loans. In an apparent effort to maximize its opportunities in the British small business lending market, PayPal has raised the upper limit of loans a business can apply for. British businesses can now secure loans of up to $198,000 in one request. Previously, businesses could only secure loans of up to $132,000. There are about 5.6 million small businesses in the United Kingdom.
PayPal also extends loans to consumers. The company reports interest and fee income from its lending operations under its revenue segment, Other Value Added Services. In the fourth quarter, the segment reported $375 million in revenue, and overall, PayPal’s overall revenue rose 13% YoY (year-over-year) to $4.2 billion. Amazon (AMZN), Square (SQ), and Shopify (SHOP), which also operate business lending divisions, reported revenue growth of 20%, 51%, and 54% YoY, respectively, in the December quarter. Revenue at On Deck Capital (ONDK), another online small business lender, rose 25% YoY.
Europe-based fintech startup Raisin is buying German lender MHB Bank, Reuters has reported.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.