Venmo’s payment and social sides

Chipotle Mexican Grill (CMG) has tapped into PayPal’s (PYPL) Venmo app to raise digital awareness for its brand and send out cash rewards to customers as it rolls out its Chipotle Rewards loyalty program nationwide.

According to Chipotle, it decided to run promotions for its rewards program on Venmo because it wanted to have a presence in all the places in which its customers spend time digitally. The company went on to state that it has become one of the most mentioned brands on Venmo.

Venmo-Chipotle Deal Reveals Untapped Opportunity for PayPal

Although Venmo is mostly known as a payment app that lets people send money to and receive money from family and friends, it’s also a social platform. For example, people can use the Venmo app to post about their purchases or—as is the case with Chipotle—discuss their participation in rewards program promotions.

Monetizing Venmo’s social feature

An opportunity exists for PayPal to leverage Venmo’s social feature to make extra money from the app. PayPal currently makes money from Venmo by charging merchants a transaction fee to enable them to accept Venmo payments. But PayPal could also open up Venmo as a marketing platform, allowing companies to promote their brands and products there for a fee.

Google (GOOGL) and Facebook (FB) generate billions of dollars in revenue by letting companies run advertisements on their social networks. In the fourth quarter, Google and Facebook generated $32.6 billion and $16.6 billion, respectively, in advertising revenues. Twitter (TWTR) and Yelp (YELP) generated advertising revenues of $791 million and $235 million, respectively, in the same quarter.

Venmo’s monetizable base

PayPal is currently in the early stages of monetizing Venmo, reporting in January that Venmo’s monetizable base had expanded to 29% in the fourth quarter from 24% in the third quarter.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.