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.
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.
Visa Offers Consistent Revenue Growth
Visa (V) has recorded consistent revenue growth over the last few quarters.
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.
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.
Understanding PayPal’s Choice Transition
PayPal reported that its payment transaction per active account increased 12.0% year-over-year in 1Q17.
How Could Partnership with 3dcart Impact Square?
The partnership with 3dcart could help Square accelerate its market share gain at a time of fierce competition for the control of the digital payments market.
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.
Is IBM Plotting to Put PayPal Out of Business?
IBM (IBM) announced in February 2017 that it was teaming up with Visa (V) to enable people to pay for goods and services through virtually any connected device.
Making Sense of PayPal’s Customer Metrics
As a result of its active customer base, PayPal reported that its total payment volume for 2Q17 rose 23% year-over-year to $106.4 billion.
S&P 500 Index Nears Record High amid Earnings Season
The S&P 500 Index, represented by the SPDR S&P 500 ETF (SPY), rose 0.3% on October 23, nearing the all-time high it saw in July.
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%.
The Idea behind Economic Moats
“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats. she
Apple’s Fiscal 2Q15 Reflects Innovation: Apple Pay, Apple Watch
Best Buy to support Apple Pay in 2H15 As discussed in our article Best Buy Will Support Apple Pay in 2H15, during its fiscal 2Q15 earnings call, Apple’s (AAPL) management noted that Best Buy (BBY) will start supporting the Apple Pay service at its retail outlets across the US. Consumers can use Apple Pay at Best Buy […]
Visa Inc Led the High-Grade Bond Market Last Week
Visa Inc (V) issued A1/A+ rated high-grade bonds worth $16.0 billion via six parts. This included $1.75 billion in 1.20% two-year notes at a spread of 30 bps.
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.
Analyzing Wells Fargo’s Interest and Non-Interest Income
Commercial banks (XLF) have seen their interest income and margins rise over the past few quarters due to rate hikes.
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.
Tiger Global Management starts new position in Alibaba
Alibaba is a Chinese e-commerce firm that operates in the online and mobile marketplace and connects retailers and wholesalers with prospective customers.
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.
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.
Apple Stock Gains 84% in 2019, Inches Closer to $300
Shares of tech giant Apple Inc. (AAPL) gained a whopping 84% YTD (year-to-date). The stock is the best performing company on the Dow Jones this year.
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.
Goldman Sachs’ Best Stock Picks for 2020
Strategists at Goldman Sachs (GS) project Netflix (NFLX), T-Mobile (TMUS), and Coca-Cola (KO) to be among the best stock picks for 2020.
How to Transact in Bitcoin and Other Cryptocurrencies
If you have purchased bitcoin currency, and it’s now in your digital wallet, there will likely be a time that you’ll want to conduct a transaction with it.
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.
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 Apple will benefit from Apple Pay—Tim Cook explains
Apple Pay is an attractive feature on Apple devices—in terms of ease of use, security, and privacy. As a result, it will help Apple sell more devices. It was released for mass use on October 20.
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.
Factors Likely to Impact Costco’s Future Earnings
Consensus Wall Street analyst estimates project revenue of $27.6 billion for Costco in fiscal 3Q16—an implied increase of 3.4% YoY.
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.
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.
Let’s Explore How Cost Leadership Provides Market Control
The attribute of “cost advantage” is the second most frequent source of economic moat ratings according to Morningstar. Companies that are able to produce and offer products or services at lower costs than competitors are often able to achieve much higher profit margins. Within many industries, cost leaders have a distinct competitive advantage and often […]
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.
Tech Stocks Drive the S&P 500 to Record Highs
This year, the SPDR S&P 500 ETF (SPY) and Technology Select Sector SPDR ETF (XLK) have risen 19.2% and 35.5%, respectively. What’s driven this rally?
Dow Jones Futures Are Flat: Watch Out for Data!
Dow Jones Futures are pointing to a flat opening for the day. The flash PMI data and other economic data releases might impact markets today.
Will the Dow Jones Crash by the end of 2019?
The Dow Jones Industrial Index (or DJIA) is trading just 2.2% below its all-time high. But is the stock bubble about to burst?
What Are the Top Holdings of Fisher Asset Management?
Kenneth Fisher is the founder of Fisher Asset Management LLC. He in July 2016. But now he’s the executive chairman of Fisher Asset Management.
Apple Stock Gains 50%, Drives Dow Jones Higher in 2019
Apple (AAPL) shares have gained close to 50% year-to-date. The stock is trading at $235.87, while it’s valued at $1.07 trillion.
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.
Dow Jones Index Loses over 400 Points, Panic Grips Wall Street
The Dow Jones Industrial Average Index has lost more than 400 points or 1.5% today. The index has fallen significantly for the second consecutive day.
Dow Falls Over 1% as ISM Data Screams Recession
Institute for Supply Management data indicating an accelerated contraction in the manufacturing industry has driven a pullback in the Dow today.
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 Stock Gains 40% in 2019: What’s Next for Investors?
Apple (AAPL) shares have made a strong comeback in 2019. After falling more than 8% in 2018, the stock has risen close to 40% YTD.
The Dow Jones Rises for Eight Consecutive Days
The Dow Jones Industrial Average has risen 51.5 points today—up for the eighth consecutive trading session. The DJIA is up 1,100 points since September 3.
Why Facebook’s Libra Might Not See the Light of Day
Ahead of its launch, Facebook’s Libra is already making waves. However, despite the benefits up for grabs, there’s a chance it might not come to life.
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.
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.
How Visa Stock Has Performed and What to Expect
Visa stock has risen about 37% and has outperformed the S&P 500 Index so far in 2019.
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.
Visa Stock: Top Institutional Buyers
The Vanguard Group is the largest institutional investor in Visa. The Vanguard Group holds 8.4% of Visa’s outstanding shares.
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).
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.
Buffett and Munger Called the Pop of the Bitcoin Bubble
After yielding solid returns in 2017, bitcoin tanked over 73% in 2018.
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.
Improving Economy and Retail Sales to Boost Mastercard’s Q3 Results
A healthy job market and a steady hike in wages have increased the spending power of consumers.
What Will Drive Mastercard’s Third-Quarter Earnings?
Mastercard (MA) is scheduled to report its third-quarter results on October 30.
Where Visa Does Stand among Its Peers?
Analysts gave Visa a target price of $164.47, which is a 16% increase from the current level of $141.74. In 2017, the stock gained ~46%.
Visa’s Q4 Results to Gain from Improving Economy and Retail Sales
The US GDP grew 4.2% in the second quarter, which was almost double the 2.2% increase registered in the first quarter.
Higher Payment Volumes to Drive Visa’s Q4 2018 Earnings
Visa (V) plans to report its Q4 2018 earnings on October 24. Analysts expect Visa to report EPS of $1.20, marking YoY growth of 33.3%.
Mastercard to Gain from Improving Economy and Rising Retail Sales
The Consumer Confidence Index increased to 133.4 in August from 127.9 in July—its highest reading since its October 2000 reading of 135.8.
Rising Digital Payments to Support Mastercard’s Long-Term Growth
Statista projects that the total value of global digital payment transactions could increase to ~$5.41 trillion in 2022 from ~$2.75 trillion in 2017.
Mastercard Sees Larger Opportunity in B2B Payment Space
Since 2017, Mastercard has been working to accelerate the adoption of digital payments in the travel industry through its various platforms.
Improving GDP and Retail Sales Could Boost Visa’s Platform Usage
Improving GDP growth, a healthy job market, and steady wage growth have increased the disposable income of consumers, thereby giving them greater spending power.
Visa Sizzles on Strong Digitization Trends and Improving Economy
Visa stock (V), which was around $78 at the beginning of 2017, now trades close to $143, a jump of over 83%.
Will Analysts Stay Optimistic about Visa Stock?
In the fiscal third quarter, Visa (V) witnessed strong growth on a YoY (year-over-year) basis in all its primary business metrics.
What Fueled Visa’s Payment Volumes in Fiscal Q3 2018?
In the third quarter, Visa (V) witnessed a rise in payment volumes from the United States on a sequential basis from 10.1% to 10.5%.
How Analysts Rate Mastercard
Analysts’ rating on Mastercard (MA) improved in July compared to June.
Understanding Visa’s Take on Contactless Payments
Visa (V) has been making efforts to increase the use of contactless payments in the United States after experiencing a positive response.
Mastercard Has Premium Valuations after Strong Q2 2018 Results
Mastercard (MA) has a price-to-earnings ratio of 28.04x on an NTM (next-12-month) basis compared to the peer average of 15.95x.
Understanding Visa’s Views on Europe and India
Visa (V) posted total payment volumes amounting to $2.1 trillion in its fiscal third quarter.
How Mastercard’s Gross Dollar Volumes and Net Revenues Trended
In the second quarter, Mastercard (MA) witnessed total gross dollar volumes (or GDV) of $1.5 trillion.
Fintech Startups Grabbed a Larger Share of US Personal Loans
The total spending on Visa’s (V) network rose 11% to $2.1 trillion in the second quarter—slightly better than analysts’ estimates of $2.09 trillion.
Visa Posts Strong Fiscal Q3 2018 Results: Payments Volume Rose
On July 25, Visa (V) posted its third fiscal quarter results. The company posted an EPS of $1.20, which exceeds Wall Street analysts’ expectations.
Visa’s Payments Volumes Could Fuel Its Growth
On July 25, Visa (V) is scheduled to report its results for the third fiscal quarter. Analysts expect Visa to post an EPS of $1.09.
Mastercard’s Q2 Preview: Spending, Macro Data Could Be Drivers
Mastercard (MA) is set to release its second-quarter earnings report on July 26. What can we expect?
What Factors Could Influence Analysts’ Ratings on Discover?
Growing trade tensions are a primary concern, as they could impact the performances of Discover Financial Services (DFS) and its peers.
What’s behind Mastercard’s Co-Brand Wins?
The economic and business environment prevailing in an economy affects the business fundamentals of payment processing giants like Visa (V) and Mastercard (MA).
How Analysts View American Express Stock
In June, eight of the 32 analysts covering the stock have given it a “buy” rating, and two analysts have given it a “strong sell.”
What’s Affected Consumer Finance Companies Recently?
On June 25, the Dow Jones Industrial Average saw strong downward pressure primarily due to escalating US-China trade tensions.
American Express Global Commercial Services: What Could Impact It
American Express’s (AXP) Global Commercial Services segment’s non-interest revenues rose 9% YoY in the first quarter.