105.30 -0.30 (-0.28%)
Pre-market: 8:10AM EDT
|Bid||105.16 x 2900|
|Ask||105.60 x 1100|
|Day's range||103.73 - 107.80|
|52-week range||74.66 - 121.48|
|Beta (3Y monthly)||0.87|
|PE ratio (TTM)||50.33|
|Earnings date||16 Oct. 2019 - 21 Oct. 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||126.72|
Deutsche Bank is paying €50m for a 4.9 per cent stake in open-banking start-up Deposit Solutions in a transaction that values the Hamburg-based start-up at more than €1bn ($1.1bn). Deposit Solutions operates software that links retail clients and lenders, allowing banks to collect deposits from people across Europe who are not their direct customers.
Facebook (FB) plans to launch its WhatsApp payment service in India before the year wraps up, according to WhatsApp India head Abhijit Bose.
Digital payments space heats up with growing proliferation of instant and same-day deposit services being offered by JPMorgan Chase, Square, PayPal and others.
(Bloomberg) -- Jack Dorsey’s Square Inc. already lets customers buy and sell Bitcoin on its popular Cash App. Soon, it may let them buy and sell stocks. Square is testing out a new Cash App feature that would enable users to make free stock trades, according to a video outlining the product’s features seen by Bloomberg. While the exact date of its launch is yet to be determined, employees began testing the new feature in recent weeks, according to a person familiar with the company who asked not to be identified discussing private matters.A spokesman for Square declined to comment.The free stock trading feature would position Square as a direct competitor to fintech startup Robinhood Markets Inc., which has gained millions of customers by offering no-fee trading, and most recently garnered a valuation of $7.6 billion. Robinhood has since expanded into other offerings such as options trading and margin trading, which would not be offered in Square’s initial product, the person said. Eventually, Square’s new service and others like it could pose a challenge to more established online brokers, like E*Trade Financial Corp.“We are seeing the cadence of free trading increase and I do think that’s something the broader industry can’t dismiss,” said Devin Ryan, an analyst with JMP Securities. “As a result, the pricing in those areas will continue to move lower.”Cash App and other peer to peer payment platforms are known for having a young customer base, similar to Robinhood. If Robinhood is any indication of the interest in free trading, Square could quickly gain a lot of traction. Prior to Robinhood's launch, it had a waitlist of 1 million people. Near the end of 2018, it said it had more than 6 million users, though it's unclear how many of them are active on the platform.Square’s Cash App started out by letting users send money to friends, and has since expanded into debit cards and Bitcoin trading. While Square doesn't consistently give updates on how many people are using Cash App, the company said it had more than 15 million monthly active users as of last December. Though there isn’t an immediate path to profitability for most free financial products, the race to add more users to platforms like Cash App has been fierce, with other businesses like PayPal Holdings Inc.’s Venmo also seeing big growth.Right now, fintech companies offering such products largely make money on the interchange fees when customers use their debit cards or on fees they charge for transferring funds to banks instantly. In its most recent letter to shareholders, Square said that revenue from Cash App was $135 million for the quarter, excluding Bitcoin. In a note published earlier this month, KeyBanc analyst Josh Beck said revenue from Cash App could reach $2 billion over the next three years. (Updates with analyst quote in fifth paragraph.)To contact the author of this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Mark MilianTom GilesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Mastercard (MA) partners R3 to launch a blockchain-enabled cross-border payments solution that will facilitate better services to customers.
"That little thing is broken, and it could really use some fixing, it is inevitably measured in hundreds of millions of dollars.”
(Bloomberg) -- Michael Novogratz is a step closer toward his vision of making Galaxy Digital Holdings Ltd. the Goldman Sachs of cryptocurrencies.The former macro manager’s self-styled merchant bank noted its approval from the Financial Industry Regulatory Authority to underwrite registered public offerings of securities in a filing last week. The New York-based firm is also looking at shepherding security token offerings -- effectively, digitized IPOs.“It’s a really young industry, and we are a pretty young business,” Novogratz said in a phone interview. “We are sober and patient about how fast it will grow, and we are well capitalized. This feels like a perfect addition.”Galaxy already invests in start-ups and coins, and helps companies secure funding for everything from early- to later-stage rounds. Galaxy managed $390 million in assets as of July 31.Novogratz, 54, is a former Goldman Sachs Group Inc. partner who spent more than a decade at the New York-based bank. He later became a principal at Fortress Investment Group LLC and managed the Fortress Macro Fund before it was liquidated in 2015. He launched Galaxy in January 2018 during the height of the crypto bubble.The company’s advisory business is headed by Ian Taylor, who worked at Goldman Sachs for 18 years before joining Galaxy in December. The Australia native is now leading a team of eight -- up from three employees in December -- with backgrounds in investment banking, consulting and structured finance.Business could take several years to ramp up, but there are plenty of hopeful signs that IPO demand could be coming: A number of crypto exchanges like Coinbase Inc. have raised money at valuations in the billions, and companies like mining hardware giant Bitmain Technologies Ltd. are already planning IPOs. Many major exchanges, mining and chip businesses are generating real revenue and profits.“The business that we are building on the advisory side is a long-term, relationship-based business,” Taylor said. “In time that will pay dividends as financing and strategic advisory opportunities arise.”Galaxy is already working on finding financing for a Bitcoin mining data center to be located in the U.S., for example, Taylor said.Mergers-and-acquisitions advising could be poised to take off as well. Traditional companies like card network Mastercard Inc. and PayPal Holdings Inc. have joined the Libra Association, a Facebook Inc.-led effort to issue a new digital coin for payments -- and such companies may look to acquire crypto businesses at some point as well. Due to political and regulatory scrutiny, Novogratz pegs Libra’s chances of launching next year at 50%.“Ultimately, we want to be a big part of the crypto ecosystem, and if they are there we want to be a big part of that,” Novogratz said, adding that he is also investing in and advising alternative platforms that would allow for Libra-like coins.Eventually, Galaxy also wants to issue tokens that could connect to or represent ownership of many valuable objects and revenue streams, Novogratz said.“The key here is regulators have been a little slower than we want them to be, but I think they are heading in the right direction,” Novogratz said. “There are a lot of interesting projects, but nothing has happened yet on the ’tokenization of everything’ front.”While some traditional investment banks could join the fray by that time, Novogratz hopes to enjoy a first-mover advantage -- and an advantage of someone focused on crypto from day one.“The traditional banks don’t have the DNA that they really need to understand the crypto community yet,” Novogratz said. “Our edge over time is that we are going to see more projects and get an understanding of what works and what doesn’t.”\--With assistance from Ben Bain.To contact the reporter on this story: Olga Kharif in Portland at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Dave Liedtka, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Stripe Inc. became one of the most valuable financial-technology startups by helping businesses accept online payments. Now it’s getting into lending.The San Francisco-based company launched Stripe Capital on Thursday. The service will start in the U.S. and will make loans to businesses that are already Stripe customers, as well as merchants selling on services like Shopify that use Stripe to process payments. Stripe will use the data it has on customers to help determine loan eligibility and terms. The first target market will be smaller businesses that use Stripe, rather than larger customers, such as Amazon.com Inc., that already have access to cash.Stripe Capital will start out by focusing on loans of about $10,000 to $20,000, according to Stripe Co-Founder John Collison. Much like Jack Dorsey’s payments firm Square Inc., which has its own lending service called Square Capital, Stripe has access to a wide swath of data on its customers. “We can constantly be looking at the businesses on Stripe, their cash flow, how they are growing, and who can be productively underwritten for a loan,’’ Collison said.Tech companies have become an increasingly popular lending source in recent years. After the 2008 financial crisis, traditional banks pulled back on small business loans, prompting many companies to look elsewhere for capital. Almost a third of loan applicants turned to online lenders in 2018, up from 24% in 2017 and 19% in 2016, according to a Federal Reserve survey.As the industry has become more digital, PayPal Holdings Inc., Square and even Amazon have introduced small business lending programs, as have a slew of startups including SoftBank Group Corp.-backed Kabbage Inc. and public company OnDeck Capital Inc.Though lending poses risks, Stripe, much like other payment services, says the extra data it has on customers will give it a better idea of whether borrowers can repay loans. The company believes that edge will protect it from significant losses during an economic downturn.“Lending is fundamentally a business that performs very differently based on where we are in the business cycle,” Collison said. “We’re doing as much as we can at the current point with models based on data that we can get from business performance and how small businesses performed in the financial crisis.’’ He added that the product was built with the possibility of an economic shock in mind, and that the company plans to be “appropriately cautious.’’To contact the author of this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PayPal co-founder Max Levchin has said he tries stay away from politics, but the Ukranian-born serial entrepreneur does make at least one exception. He's not a fan of socialism.
The Zacks Analyst Blog Highlights: KLA-Tencor, Microsoft, Alphabet, Lattice Semiconductor and PayPal