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Digital Dollars

Digital Dollars

6.47k followers19 symbols Watchlist by Motif Investing

With the growing adoption of electronic payments in emerging markets, global issuance of payment cards is projected to grow 36% to 18.3 billion during 2011-2016.

Curated by Motif Investing

Background

The way we pay is undergoing an unprecedented shift. We're moving away from paper-based cash and checks, and toward plastic and other digital methods. Global non-cash transactions reached $333 billion in 2012, an increase of 8.8% from the previous year. Electronic payments offer consumers plenty of benefits, including convenience and security, fueling even wider adoption.

In the US, electronic payments account for more than 75% of total non-cash transactions. Meanwhile, traditionally cash-based emerging markets are rapidly adopting new payment methods, fueling growth of companies involved in the e-payment explosion.

How did we choose these stocks?

We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than $1.00 or a market capitalization less than $100 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.

Who made these selections?

Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.

How are these weighted?

First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.

More details on how we build and weight watchlists are available here.

Performance

WatchlistChange today1-month return1-year returnTotal return
Digital Dollars-1.20%+7.91%+0.00%+47.87%
^GSPC+0.06%+5.22%+16.25%+3503.53%

19 symbols

SymbolCompany nameLast priceChange% changeMarket timeVolumeAvg vol (3-month)Market cap
VVisa Inc.196.36-2.41-1.21%4:00 pm GMT-45.65M8.50M431.10B
MAMastercard Incorporated328.02-2.12-0.64%4:00 pm GMT-43.66M4.11M328.37B
PYPLPayPal Holdings, Inc.198.63-5.46-2.68%4:00 pm GMT-46.53M7.80M233.05B
AXPAmerican Express Company99.16+3.24+3.38%4:02 pm GMT-44.69M5.47M79.84B
FISVFiserv, Inc.103.91+1.53+1.49%4:00 pm GMT-44.63M4.74M69.57B
SQSquare, Inc.147.22-6.78-4.40%4:00 pm GMT-415.58M13.72M65.30B
GPNGlobal Payments Inc.174.83-1.67-0.95%4:00 pm GMT-41.54M1.97M52.32B
FLTFLEETCOR Technologies, Inc.240.61-22.39-8.51%4:00 pm GMT-41.81M738.24k20.16B
JKHYJack Henry & Associates, Inc.184+1.57+0.86%4:00 pm GMT-4665.28k520.25k14.10B
WEXWEX Inc.162.81-5.74-3.41%4:00 pm GMT-4404.89k551.09k7.18B
EEFTEuronet Worldwide, Inc.100.67-0.33-0.33%4:00 pm GMT-4345.39k589.37k5.26B
ACIWACI Worldwide, Inc.30.5-0.44-1.42%4:00 pm GMT-41.11M682.31k3.54B
GDOTGreen Dot Corporation52.72-2.47-4.48%4:00 pm GMT-4608.48k639.88k2.81B
EVTCEVERTEC, Inc.31.97+0.27+0.85%4:00 pm GMT-4450.97k489.85k2.30B
UEPSNet 1 UEPS Technologies, Inc.3.41+0.05+1.49%4:00 pm GMT-4318.31k218.40k194.78M
VNTV----6:07 pm GMT-4---
HAWK----6:07 pm GMT-4---
PAYVeriFone Systems, Inc.---6:07 pm GMT-4---
TSS--------
  • Bloomberg

    Can Twitter Build Something Worth Paying For?

    (Bloomberg Opinion) -- In its latest earnings call, Twitter Inc. announced that it was building a subscription-based service. But it revealed little else. So we asked Bloomberg Opinion’s columnists to come up with some ideas that could actually work. Here’s what they said. Substack for TwitterA Twitter subscription model faces an interesting test as parts of the media and entertainment industry seem destined to move back toward predominantly advertising-supported platforms. Consumers tend to be more open to paying an automatic, recurring monthly fee to receive something tangible — meals, workout classes, clothing, razors, beauty products. We’re quite sensitive to the price we pay for things we simply watch or scroll, such as streaming-TV apps and social media, especially given that we often rely on multiple streaming and social media services rather than just one. But one subscription model that Twitter could explore is the idea of users paying for exclusive premium content and ideas.Substack jumps to mind. It’s an email-newsletter publishing service in which the newsletter author can charge a subscription fee to readers, with Substack taking a cut. These days, a journalist’s complete body of work tends to include Twitter. It’s not just posts containing articles that link back to a news site, but also threads of thought and insights that live within Twitter, including dialogues with other writers, experts and readers that anyone can see (unless the account is private). Newsrooms could wall off exclusive video content and breaking-news feeds, creating a new source of revenue and solving the problem of a scoop breaching a news site’s paywall and making its way into the broader Twitter universe before the publisher’s paying subscribers get a first look. A big risk, of course, is a Twitter subscription undermining a news site subscription, and the challenge is determining what content a Twitter subscriber would even be willing to pay to access. But the news industry gives away a ton for free on Twitter, and not without reason: It builds reach and a following. Maybe that’s an opportunity. — Tara LachapelleA Twitter Star’s 3-Tiered PlanBack in 2016, Darren Rovell, the former ESPN reporter who’s been on Twitter since 2009 and has more than 2 million followers, wrote an article with the headline “My $4.5 Billion Gift To Twitter.” That’s how much he calculated the company would make if it employed the subscription model he laid out. Four years later, I still haven’t seen a better model, so rather than come up with my own, I’m going to steal his. Don’t worry: He won’t mind. He really wants this to happen.Here’s his model:Anyone who doesn’t want to pay doesn’t have to. For them, Twitter stays the same. People willing to pay $1 a month get to prioritize their feed: by topic, chronology, followers, etc. They also get a mobile TweetDeck, which is something power users have long yearned for. For $5 a month, users get all of the above, plus priority access to Twitter’s new features as they roll out. “You also get a newly built Twitter Heat Map, which gives you access to a column that allows you to see the fastest retweeted and liked tweets on the platform in real time,” writes Rovell. For $10 a month, Rovell would throw in Identity Verification Services (blue checkmark on day of signing up), as well as the ability to sell products and services with a “Buy Now” button. Me, I would also eliminate ads for people willing to pay that much. But I’m not the expert. — Joe NoceraA Brand-Building EngineMy company, a wealth-management firm, has successfully used Twitter to build brand and name recognition. We would pay Twitter for a service that would show us how to do that commercialization better — bigger, faster, more efficiently. Relatedly, Facebook Inc. has successfully come up with ways for advertisers to achieve better results; Twitter should do something similar if they want to capture more revenue from businesses. And while ads and sponsored content on Twitter have yet to interfere with my enjoyment of the platform, I expect that we are all going to see more of them. Hardcore users would probably be willing to pay a premium — $5, $10 a month? — for an ad-free experience. Of course, Chief Executive Officer Jack Dorsey’s real job is running Square Inc. As NYU Stern School of Business professor Scott Galloway has so eloquently argued, all Twitter really needs is a full-time CEO. Maybe that person would have better ideas to grow and monetize the user base. — Barry RitholtzAn Easier, More Searchable TwitterThe biggest mistake Twitter could make is to put up barriers that would lead to a loss of users. High rollers won’t take too kindly to losing thousands of followers due to a perceived Twitter cash grab, and they might devote their attention to other platforms. Additionally, ask any app developer and they’ll tell you that getting customers to pay for something that was previously free is a surefire way to lose customers.Instead, Twitter can get away with offering a paid tier by filling in the plentiful holes that currently exist in its product. Searching on Twitter’s mobile app is a horrendously difficult task — one that should be easy. There are thousands of users who would pay a few bucks per month to easily find that covfefe tweet by @realDonaldTrump or @elonmusk’s post about 420. Twitter search should be able to tell you how many times @jk_rowling has referenced transgender people or which followers @BarackObama has interacted with. Users would spend even more money to be able to access an archive of deleted tweets — a service available elsewhere for politicians, businesses and other VIPs. Once Twitter gets search sorted, then it can start making the case for even more ambitious premium offerings. — Tim CulpanCrowdfunding a Democratized DiscourseToo many politicians and other bad actors exploit Twitter as a bully pulpit or a hate machine, but it’s still the curious person’s social media. Any subscription product that lowers the volume of serendipity will hurt the platform. The key is to use Twitter’s strengths to drive revenue.Earlier this year, Oxford University Press published a study inspired by a debate on Twitter. Unfortunately, the debaters themselves — and the people following them — couldn’t read it without paying $35. Therein lies an opportunity. One way to monetize Twitter may be to give niche media and academic publishers an opportunity to make tiny sums on paywalled content from a large number of users, their curiosity stirred by others on the network.Such a system could also enable journalism startups, with small payments for one investigation or feature helping to finance the next. Could it also help support female scientists and researchers from lesser-known institutions who are now struggling to sustain themselves? Giving only paying customers a hate-free, bot-free experience is too morally dubious to count as a real business. Crowdfunding a more democratized discourse might be a better model. — Andy MukherjeeA More Curated, Polished TwitterAs a social media editor, I get paid to use Twitter for a living. In order to get the most out of the platform, I use a whole host of applications, ranging from TweetDeck to SocialFlow to CrowdTangle. Through this ragtag band of browser tabs, I can see the potential of Twitter as a one-stop shop for news and so many other interests. As it stands, Twitter is messy. Every hundredth scroll or so, you’ll find a tweet along the lines of: “This site is garbage, why am I even on here?” Social media addiction is real, but so is the longing for a higher-quality, more comprehensive experience, even if it costs $10 a month.Twitter’s trend-tracking module is no way to find out what's going on in the news. But the most-tweeted links of the people or lists you follow would be an excellent way to do so. Why isn't that a tab in Twitter? Why can't I receive such links wherever I'd like them delivered — email, push notification or in-app alert? And why can't I look back a week from now for everything ever said on Twitter about an article?A few more improvements worth paying for: Twitter often leaves users disconnected from the intent of the initial storyline. Along with every viral tweet, there should be an easy-to-navigate linear timeline of tweets surrounding that discussion. And to reduce the confusion surrounding tweets that lack context, Twitter could also enhance its newly updated “Retweets and Comments” so that users can toggle between the top-engaged quote-tweets and most-followed retweeters, as well as a linear list of both categories. People are looking for the entire story, and Twitter just needs to make it easier to locate. And what about a dashboard that lets users track the velocity of not only their own tweets, but also the tweets of other sources in real time, beyond Top Tweets and Latest Tweets? According to Twitter, “Top Tweets are ones you are likely to care about most.” It sounds vague because it is. — Jessica KarlLet’s Call the Whole Thing OffI’ve got some bad news for those at Twitter who are excited about developing a subscription product: Now is not the time.Jack Dorsey rightly says the company will have to offer a “really high bar” of value before asking consumers to pay for a product. The main problem is many of the obvious subscription ideas risk fragmenting the platform’s user base — one of the key attributes of the service. Moreover, as a longtime power user, I’m hard-pressed to imagine paying for anything Twitter may offer.Instead, the company should focus on improving its core advertising business. Developing an advanced, transaction-oriented ad platform for large and small businesses would make a much bigger impact on Twitter’s revenue than any conceivable premium product. Facebook’s so-called “direct response” ads generate roughly 25 times more sales than Twitter — all while somehow maintaining a service for over a billion users that is mostly free of charge. — Tae KimThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mike Nizza is an editor for Bloomberg View. He was the executive editor of BloombergPolitics.com, as well as an editor at Esquire Digital, News Corp.'s the Daily, the Atlantic Media Co.'s Innovation Center and the New York Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    Why Goldman Sachs Stock Looks Golden

    Investment bank’s repositioning and new ventures set it up for growth. And the 1MDB scandal settlement has removed a big uncertainty overhanging its shares. Also, Wall Street views of Roku, CenturyLink, Norfolk Southern, and Fiserv.

  • Wall Street Is Getting More Upbeat About Square Stock — and Investors Have Noticed
    TipRanks

    Wall Street Is Getting More Upbeat About Square Stock — and Investors Have Noticed

    2020 has seen a market trouncing performance from fintech player Square (SQ). Since hitting the skids in mid-March with the price dropping to $38.09, shares have appreciated by an enormous 285%.The latest uptick came after Square’s Q2 earnings report blew the estimates out of the water. The banking industry disruptor generated revenue of $1.92 billion, indicating year-over-year growth of 64.1% and handily beating consensus by $790 million. Non-GAAP EPS of $0.18 came ahead of the estimates by $0.22.Although gross payment volume – a key metric – declined by 15% from the same period last year to $22.8 billion, the figure still beat the forecasts by 20%.A big chunk of the uptick was driven by Cash App’s low-margin bitcoin trading revenue. Even so, removing the Bitcoin gains, Cash App revenue still increased by a hefty 140% up to $325 million. The peer-to-peer app now has over 30 million active users and accounted for almost half of Square’s gross profit in the quarter.So, great news all around. But considering the stock’s almighty gains so far this year, is it wise to take out a position in Square following the extended run-up?Most certainly, says Rosenblatt analyst Kenneth Hill. In fact, along with reiterating a Buy following the earnings results, the 5-star analyst raised the price target significantly - Hill’s new target is $181, up from the previous $136. Investors will be taking home a 23% gain should the analyst’s thesis play out over the next 12 months. (To watch Hill’s track record, click here)While Square’s Q2 display was impressive, Hill argues the future looks even brighter: “We liked the strength displayed in 2Q as gross profit performance came in much better than we expected. That said, we liked the upgrade to the forward outlook even more. While the better-than-expected July metrics were a clear positive, the biggest takeaways for us were the Cash App engagement metrics and the emphasis on new investment in the business… We see the surge in investment activity as a way to supercharge the long-term growth trends already in place, given healthy payback and ROI metrics historically.”Hill is not alone in his positive prognosis, as several analysts have recently upgraded Square’s rating too. However, there’s a dose of realism to Square’s Moderate Buy consensus rating; along with 11 Buys, there are 15 Holds and 2 Sells. Additionally, the average price target of $113.38 implies shares will drop by 23% in the year ahead. (See Square stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.