Digital Assets Are on the Rise and MasterCard Joins in With USDC
Mastercard’s (MA) Stock Forecast Before Its Q1 Earnings
AXP’s Valuations Down in 4Q15, Targeted $1 Billion in Savings
American Express (AXP) expects its full-year 2016 EPS to be between $5.40–$5.70. It looks to return to positive EPS growth in 2016 and is targeting a minimum of $5.60 EPS for 2017.
Mergers and Marketing Efforts Pressure MasterCard’s Margins
MasterCard’s rebates and incentives rose by 18% to $1.0 billion in 1Q16—higher than expected, mainly due to the timing of some deals and acquisitions.
A Look at Capital One’s Valuations
Capital One Financial Corporation’s (COF) PE (price-to-earnings) ratio is 8.77x on an NTM basis compared to its competitors’ average PE ratio of 20.79x.
Visa Expected to Post Healthy Margins in Fiscal 3Q16
Visa (V) has maintained its operating margin above 60% over the past few years. The company’s major expenses include personnel, marketing, network and processing, and professional fees.
Increased Spending, Electronic Payments Beneficial for Visa
Visa’s total transactions grew by 11% on a YoY (year-over-year) basis in fiscal 4Q15. The company reported total transactions of 27.9 billion in fiscal 4Q15, as compared to 25 billion in fiscal 4Q14.
MasterCard’s Performance to Be Driven by Investments, Expansions
MasterCard (MA) is expected to release its 1Q17 earnings on April 27, 2017. Its EPS is expected to be $0.94, a 9.3% rise year-over-year.
Why Is Alibaba So Interested in Blockchain?
Alibaba (BABA) tops the list of companies seeking to patent ideas related to blockchain technology.
What to Expect from Visa in Fiscal Q3 2018
Visa (V) is expected to post EPS (earnings per share) of $1.11 in the third fiscal quarter (ending in June), boosted by strong business fundamentals.
Mastercard Witnesses Rise in Net Income
In 1H16, Mastercard (MA) reported net income of $1.9 billion. In 1H17, it was $2.3 billion, reflecting a substantial rise of 16.5%.
How Payment Processors Are Performing amid Challenges in 2016
Payment processors are seeing major changes in 2016, including increased competition on pricing and the adoption of new technologies such as wearables.
Which Payment Processor Has the Highest Payouts and Repurchases?
Payment processors are rewarding their shareholders with 1%–2% dividend yields, largely dependent on operating performance.
MasterCard’s Leverage Is Comfortable for Expansion, Acquisitions
MasterCard (MA) has debt of $3.3 billion with a total balance sheet of $15.9 billion as of March 31, 2016. This compares to $16.2 billion in 4Q15.
Mastercard Benefited from Certain Regions
Mastercard benefited from the Latin America region. The region witnessed favorable momentum in consumer confidence and lower unemployment.
Can American Express Distributions Continue to Attract Investors?
American Express (AXP) has been using its strong balance sheet position to consistently declare dividends to its shareholders.
What to Expect from Payment Processing Companies in H2 2018
In the first quarter, Capital One’s net income totaled $1.3 billion while Discover’s net income reached $666.0 million.
Revisiting PayPal–Amazon Payment Partnership Talks
PayPal’s (PYPL) chief financial officer, John Rainey, mentioned partnering with Amazon (AMZN) during a recent Credit Suisse technology event. He didn’t clarify whether the companies were still in active talks.
Mastercard’s Positive View of QR Technology
Mastercard’s (MA) 3Q17 profit margin stands at 38.7%.
Apple Pay Beats eBay and Google in In-Store Mobile Payments
Apple Pay beat eBay’s PayPal and Google in in-store mobile payments. PayPal’s strong relationship with retailers places it as a significant player in this space.
Understanding PayPal’s Choice Transition
PayPal reported that its payment transaction per active account increased 12.0% year-over-year in 1Q17.
What Do Facebook, Alibaba, and IBM Have in Common?
Blockchain technology could generate $60.7 billion in annual revenues by 2024, up from $708.0 million in 2017, according to Market Reports Center.
Discover Financial: Tax Cuts and Payment Services Division
Discover Financial’s (DFS) Payment Services segment saw a rise in its pretax income from $107.0 million in 2016 to $145.0 million in 2017.
What to Expect from Mastercard Moving Forward
Wall Street analysts expect Mastercard (MA) to post earnings per share (or EPS) of $1.25 for 1Q18.
A Look at Apple’s Evolution in the Payment-Processing Market
Apple could disrupt the business of established players PayPal and Square in the person-to-person payment-processing market.
This Move Could Increase Mastercard’s Transaction Volumes
On April 9, 2018, Mastercard (MA) made an announcement regarding the integration of its Masterpass service with the My Phillips 66 app.
Can Samsung Pay Mini Put Pressure on Apple Pay?
In what appears to be a major break from industry tradition and a possible setback for Apple (AAPL), Samsung (SSNLF) is expanding the availability of its mobile payment service, Samsung Pay.
What Analysts Recommend for Mastercard
37 analysts are covering Mastercard (MA) in March 2018. Two of these analysts suggest a “hold,” while 17 analysts recommend a “strong buy.”
How IBM Could Monetize Its Food-Tracking Platform
IBM (IBM) has built a blockchain platform that provides real-time tracking of the food supply chain.
An Investor’s Guide to Top-Performing Stocks for 2020
Overall, tech stocks turned out to be the top performers for 2019. The gain in the technology sector helped the S&P 500 gain 29% in 2019.
A Look at the PayPal-Acorns Tie-Up
Acorns is one of the nearly two dozen companies that PayPal has either invested in or inked commercial deals with over the past two years.
Investors should watch Discover’s stock in the longer term
Discover Financial’s (DFS) stock price rose from $14.70 at the end of 2009 to $65.50 at the end of 2014. This is an increase of 346%.
Tiger Global raises its position in MasterCard
MasterCard plans to sustain its growth and revenue by improving its pricing and increasing its processed transactions.
Why Visa Saw Strong Performance in Fiscal 4Q17
Visa (V) announced its fiscal 2017 results and its fiscal 4Q17 earnings report on October 25. The consumer financial giant reported strong numbers in fiscal 4Q17.
Why is Apple looking to partner with payment networks?
Apple is expected to release the iPhone 6 on September 9. Its success could make people forget these issues. In addition to a bigger-screen iPhone 6, Apple is expected to introduce a few more attractive features.
Analysts’ Views on Visa Stock
Analysts still love Visa (V) stock, primarily because of its strong outlook.
Will MasterCard’s Distributions Outperform Visa’s?
MasterCard (MA) has been paying dividends on its outstanding common stock for the past few quarters and is expected to continue this legacy.
Lone Pine Capital starts new positions in BIDU, MA, DVA, P, Sells ISRG, RL – 13F Flash (C)
Lone Pine Capital LLC, based in Greenwich, Connecticut, was founded in 1997 by Stephen Mandel and is one of the largest equity-focused hedge funds in the United States. It is estimated to have $28.3 billion of assets under management. In Q3 2013, it started new positions in Baidu Inc. (BIDU), MasterCard Inc. (MA), Davita Healthcare […]
Here’s What Drove Groupon’s Stock Upward Last Month
The stock price of online deal company Groupon (GRPN) rose 21.8% in November 2017 and closed the month at $5.64 on November 30.
Is American Express a Stock for Value Investors?
Wall Street analysts have given a price target of $84.84 on Amex stock, which implies a rise of 0.6% from its current price level.
Visa Processed Transactions in Line with Expectations
Visa (V) reported total processed transactions of 27.9 billion in 4Q15 compared to 25 billion in 4Q14. Total transactions are payments and cash transactions reported by clients on operating certificates.
Behind Mastercard’s Higher Valuations
Mastercard has a price-to-cash-flow ratio of ~33.9x on an LTM (last-12-months) basis.
Payment Processors Dividends Are Now Rising on This
Payment processors are rewarding their shareholders with dividend yields of 1%–2%, depending largely on operating performance.
Will Blockchain Lift or Sink IBM?
IBM (IBM) is making a huge bet on blockchain, the technology that underpins most cryptocurrencies.
Visa Payment Volume Grew on Higher International Spending
Visa saw growth in its international payments volume on a constant dollar basis, mainly due to spending in Sub-Saharan Africa and Mexico.
Visa Establishes Partnerships to Expand in China
Visa announced partnerships with the China Foundation for Development of Financial Education and the China Foundation for Poverty Alleviation.
Why PayPal Stock Is an Attractive Pick for Investors
On Thursday, PayPal stock rose 2.6% and closed at $168.05 after an analyst upgrade. At the last closing price, PayPal’s market cap was $197.3 billion.
Is AXP Stock a ‘Sell’ after Its Q1 Earnings?
Today at 7:02 AM ET, AXP stock rose 1.1% to $84.10 in the pre-market session. The company reported its first-quarter earnings results on April 24.
Will Tech Stocks Push S&P 500 to Record Highs?
Tech stocks have been on a roll since the start of 2019. The S&P 500 ETF (INDEXSP: INX) has gained 31.4% since January 2019.
Bitcoin Year in Review and 2020 Forecast
I wouldn’t call 2019 a sea of tranquility for Bitcoin. But at least it wasn’t as much of a roller-coaster ride as the two preceding years.
Why This Month Is Crucial for Facebook’s Libra Project
In the coming weeks, Libra Association members will start committing to Facebook’s (FB) Libra cryptocurrency project formally.
PayPal Abandons Facebook’s Libra: Could Others Follow?
PayPal announced its withdrawal from the 28-member team of Facebook’s Libra Project. Libra has received criticism from the public and private sectors.
What’s Happened in the Libra Project This Month
Although Zuckerberg was banking on Libra, the cryptocurrency project has landed on shaky ground. Here’s a rundown of its challenges this month.
Libra 101: All You Need to Know about the Cryptocurrency
Last week, Facebook (FB) and other founding members of the Libra Association launched Libra. Libra will be governed by a handful of large organizations including Uber (UBER), Lyft (LYFT), Visa (V), and Mastercard (MA). By the planned launch in 2020, Facebook expects to have 100 members in the governing body.
Will Libra Cryptocurrency Survive Assault from Lawmakers?
Last week, the US House of Representatives asked Facebook (FB) to stop developing its Libra cryptocurrency.
Libra Cryptocurrency Transactions Might Not Start in 2020
While Facebook set the middle of 2020 as the Libra Cryptocurrency’s launch date, many people think that the deadline might be too aggressive.
Europe’s Top Economies Reject Facebook’s Libra Cryptocurrency
Germany and France, Europe’s largest and third-largest economies, say they have no place for Facebook’s Libra cryptocurrency.
Card shark Citigroup plays for major revenue
Citigroup is the world’s largest credit card issuer. Bank of America and Capital One follow Citigroup in terms of credit and charge volume.
Why Blue Ridge Capital exits position in Coach
Coach shares fell in June after the company said it will close 70 out of its 351 North American full-price stores by the end of the first half of 2015.
Why eBay’s 2014 database breach was one of the worst ever
According to eBay, this cyberattack compromised about 145 million user records. This is one of the worst database compromises in history.
Facebook Pay: PayPal Isn’t the Target After Libra Exit
Facebook (FB) launched a new payment service that will work across its family of apps. The payment service is called Facebook Pay.
Lone Pine Capital starts new positions in BIDU, MA, DVA, P, Sells ISRG, RL – 13F Flash (B)
Lone Pine Capital LLC, based in Greenwich, Connecticut, was founded in 1997 by Stephen Mandel and is one of the largest equity-focused hedge funds in the United States. It is estimated to have $28.3 billion of assets under management. In Q3 2013, it started new positions in Baidu Inc. (BIDU), MasterCard Inc. (MA), Davita […]
Are Cryptocurrencies and PayPal a Risk for Banking?
Alternative options, such as cryptocurrencies or payment platforms like PayPal (PYPL), may impact banks in the long term. They are here to stay.
Visa Collaborated with PayPal to Expand in Europe
Visa (V) reported strong net revenues in fiscal 3Q17 on the back of processed transactions, cross-border volumes, and payments volumes.
US GDP Shatters Expectations, Pessimists Run for Cover
The US GDP increased at an impressive rate of 1.9% for the third quarter. The growth beat the expectations of around 1.6% for the quarter.
Are Mastercard’s Earnings Results a Win for America?
Mastercard just posted a solid earnings beat. It’s been a blockbuster Q3 for payment companies, with Visa and American Express beating projections, too.
Could the Fed Trigger an S&P 500 Crash This Week?
The S&P 500 Index, which is trading close to an all-time high, could be affected by the Fed’s tone in its upcoming meeting.
Libra Responds to PayPal’s Exit from Facebook Currency Project
PayPal (PYPL) has decided to drop out of Facebook’s (FB) Libra Association, the group set to run the Libra cryptocurrency network.
Why Apple Services Are Overshadowing the iPhone
By 2020, Apple aims to double its Services revenue from 2016. Meanwhile, the iPhone is looking less and less important for the company.
What Led Oracle to Add $12 Billion to Its Share Buyback Program?
During its fiscal 2Q18 results, Oracle announced that it had added $12 billion to the company’s share buyback program.
Mario Gabelli: What To Do if Market Declines
On August 24, in an interview with CNBC, Mario Gabelli encouraged value investing. He is the CEO, chairman, and founder of GAMCO Investors.
Analysts Bet on Square Stock: What’s Next?
Square (SQ) stock is up over 3% in today’s trading session. SQ jumped after Wells Fargo upgraded its rating to “outperform” from “market perform.”
Verizon and Wells Fargo Are Getting on the Blockchain
Verizon (VZ) and Wells Fargo (WFC) are taking steps to integrate blockchain technology into their business models. Here’s why.
Apple Card’s Launch Date in August Isn’t Confirmed
Despite not knowing the Apple Card’s launch date, the card moved from a promise to a reality. Apple Card is a reality inside Apple offices.
Has Trump’s Mistrust for Tech Affected His Views on Libra?
Late Thursday, Trump hurled three tweet bombs at cryptocurrencies, specifically naming Bitcoin and Facebook’s (FB) Libra.
Why American Express’s Q2 Earnings Rose
American Express (AXP) reported its second-quarter earnings results on Friday before the market opened. Its EPS beat analysts’ consensus estimate.
Libra and Big Tech Go to Capitol Hill and Cryptocurrencies Fall
Yesterday, Facebook’s (FB) David Marcus, head of Facebook’s Calibra wallet, visited Capitol Hill to testify in front of the Senate Banking Committee.
S&P 500 Hits 3,000 and BTC Falls as Powell Voices Libra Concerns
Fed Chair Powell’s testimony to Congress concluded yesterday. During his testimony, Powell said that Libra, Facebook’s (FB) cryptocurrency project, raises “serious concerns.”
Why Upcoming Earnings Remain Critical for Technology Markets
Tech stocks made a stellar comeback in the first six months of 2019. The Technology Select Sector SPDR ETF (XLK) has returned 15.8% so far this year.
How Long Will Facebook’s Libra Fuel Bitcoin Rally?
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.
MasterCard and Visa’s Valuation and Earnings Growth
Currently, MasterCard (MA) is trading at a forward PE ratio of ~33x—higher than Visa’s (V) ratio of ~30x.
MasterCard Stock Has Outperformed Visa in 2019
MasterCard (MA) stock has risen ~34% in 2019. MasterCard stock has outperformed Visa (V) by ~11%.
Mastercard Targets Gig Workers with Lyft Partnership
Continuing with its innovative ways to expand its customer base, Mastercard (MA) is now targeting the “gig economy.”
Analyzing Visa’s Valuation after Its Q2 Earnings
Visa (V) is trading at a forward PE ratio of 27.7x, which is higher than its five-year average PE ratio of 24.5x.
Berkshire-Backed StoneCo Tumbles after ITUB Ups Ante
StoneCo (STNE) was trading down 27.6% as of 1:30 PM ET. The negative price action was driven by an announcement by Itaú Unibanco Holding (ITUB).
Visa: Analysts Are Bullish before Its Earnings
Visa (V) has seen three upward revisions in its target price in April. On April 10, Cowen increased its target price for Visa from $161 to $177.
How Visa Stock Might Perform until Its Earnings
The implied volatility in Visa fell by ~12.5 percentage points from January 2 to 18.73% on April 12. Visa stock has risen ~21% during this period.
What Might Drive Visa’s Q2 Earnings Growth?
According to data released on March 29, consumer spending rose 0.1% in January. Disposable personal income fell 0.2% in January.
Will Visa Exceed Its Earnings Estimates Again?
Visa (V) is scheduled to report its second-quarter earnings on April 24. In the quarter ending December 31, Visa reported 7% sequential EPS growth.
Berkshire Hathaway: Payment Industry in Q1
Berkshire Hathaway (BRK-B) has invested in several payment industry stocks like Visa (V), Mastercard (MA), American Express (AXP), and StoneCo.
How Will Apple’s Credit Card Benefit iPhone Users?
On March 25, Apple (AAPL) announced that it would launch an Apple-branded credit card, known as Apple Card, this summer in the United States.
Goldman Sachs’ Take on Uncertain Stock Market: Get Defensive
Last month, Goldman Sachs predicted the S&P 500 (SPY) will reach 3,000 by the end of 2019.
Innovative Services around Microsoft Azure Are Fueling Its Growth
Although Amazon’s Amazon Web Services continues to be the most popular cloud platform, Microsoft’s Azure is growing faster.
Why PayPal Is Hiking Its Venmo Bank Transfer Fees
Venmo processed $17.0 billion in transactions in the third quarter, up 78.0% year-over-year.
Mastercard Stock Soars on Stunning Q3 2018 Results
Mastercard (MA) stock rose ~3% in premarket trading on October 30 following its announcement of its impressive third-quarter results.
Behind the PayPal–Amex Partnership
PayPal finished the third quarter with 254.0 million active customers on its platform.
Digitization and Tech Investment Drove Visa’s Payment Volume
Visa’s (V) fourth-quarter results benefited from the growing global trend of cashless transactions.
Visa’s Q4 Profit Jumps 34%: A Look at Key Growth Drivers
Visa’s adjusted fourth-quarter EPS jumped 34% year-over-year to $1.21 and surpassed Wall Street analysts’ estimates by a penny.
A Look at IBM’s Food Trust Platform
Alibaba has submitted 90 blockchain-related patent applications, compared to 89 blockchain patent applications submitted by IBM.
What’s Mastercard’s Valuation ahead of Third-Quarter Earnings?
At current market prices, Mastercard (MA) trades at a premium valuation to most of its peers with the exception of PayPal Holdings (PYPL).