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PayPal Tops Estimates and Opens Doors to Massive Growth

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Paypal stock market news

PayPal Holdings, Inc., (NASDAQ: PYPL) was expected to deliver a year-over-year increase in earnings and higher revenues during the third quarter that ended on September 30th 2019. Not only that the pioneer of peer-to-peer did not disappoint but it managed to top Wall Street expectations by increasing its active userbase to 295 million users. This is a good year for Paypal as the company’s shares have climbed 15% since the beginning of the year with a rise of 10% in the last 12 months. The share price surged during the final minutes of trading on Wednesday after the earnings were announced, reaching the price of $96.64.

Third quarter earnings report

The digital payments company that is pioneer of peer transactions reported a net income of $462 million, up from previous quarter’s $436 million. Revenues that rose 19% also exceeded expectations of $4.35 billion by reaching  $4.38 billion. In the same quarter last year, revenues amounted to $3.68 billion.

This was the very first time, the very first quarter that the company processed more than 1 billion transactions per month. Number of payment transactions per active account also rose 9%. This figure of 39.8 is also important because it measures consumer engagement. The company is adding merchants and growing its lead among digital wallet providers.. Its shares have gone up more than The S&P 500 this year.

Competitive environment

Mastercard (NYSE:MA), Visa (NYSE:V) and The American Express (NYSE:AXP) joined forces and just announced a competitor to PayPal and Apple Pay (NASDAQ:AAPL) by launching a ‘payment button’ that allows users to save their details on one place, eliminating the need to type 16-digit card numbers, codes and dates.Of course there’s also Amazon (NASDAQ:AMZN) which gets a nice share of the online payment buzz with its Amazon Pay, the truth is that every other retailer like Walmart (NYSE:WMT) is competing with the e-commerce giant thanks to Paypal.

Then there is the New York-based financial services company Payoneer which is very popular with freelancers all over the world due to a more favourable tax rate, but even in this case, people often opt for Paypal because they feel it’s safer – what better sign of an effective brand image. So when it comes to differentiation – PayPal seems to have it covered.

The First foreign payment platform to get a license in China

With the recent PayPal’s acquisition of GoPay that provides online and mobile transactions for e-commerce and aviation tourism industries, PayPal secured a big win. The company opened a door to massive expansion, especially considering how rapidly is the Chinese market growing. Each single one of Paypal’s competitors and any US financial firm would die to have a precious piece of this enormous pie, and many have been trying to do it for years. China’s payments market is expected to grow over 96 trillion dollars by 2023 and PayPal secured its place in that storyline. Sounds like a goldmine, doesn’t it? What’s even more interesting is that this acquisition came at a very strange time during the increased tensions between the United States and China so it is even more surprising how PayPal managed to make such an ‘easy entry.

Outlook

With the demand for e-commerce growing consistently, there is plenty of room for the Chinese payment market to grow. On top of that, the number of active mobile payment users is expected to increase further and reach a massive figure 956 million by 2023. On the other hand, others find that its latest deal may not help the company all that much and that it will be just historic rather than record-breaking. As for the fourth quarter that ends in December, the company expects revenue in the range of $4.89 billion to $4.95 billion and 17.70 billion to $17.76 billion for the full year, with the mid point being higher compared to previous estimates (17.6 billion to $17.8 billion). Full-year earnings are expected to be in the range of $3.06 to $3.08 per share. It definitely seems that the San Jose, California-based digital platform’s initiatives are on track.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com
Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

Tech Companies Who Have Superpowers to Change Their Industry- and the World

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Whether we like it or not, the world we know is shaped by corporations. And unless you live in the woods and entirely off-the-radar doing nothing but meditating for a living, odds are you are using their products and services. But luckily for us, there are still innovative companies out there, who besides being just the right ‘provider’ to earn their revenues, actually deliver products that make the world a better place. These companies disrupt existing practices, redefine their industries and just make our everyday lives better. So, lets honor those game-changers.

Tesla (NASDAQ:TSLA)

The electric pioneer’s recent stock price rise might be a shocking surprise to some, but surely not to those who believed in Tesla and Musk’s aggressive global goals that sometimes did seem as far-reachable dreams. But the reality is that Tesla could even be worth trillions of dollars in 4 years as Ark Invest expects Tesla shares to jump another ten-fold to around $7,000 by 2024. And who knows what can happen if Tesla manages to nail autonomous driving. The truth is that Tesla’s value has not gone up only because Musk’s promise of a profitable quarter came true or because of dramatically increased production and sales in a mid of a severely shrinking auto market. Stock price reached the Moon because of Tesla’s massive potential due to the shown ability, indicating it is more than the right candidate to master even self-driving technology. Then again, all great automakers have elevated humanity at some point, from horses to cars. Just think of Ford (NYSE:F) who is now struggling to make ends meet. And Tesla is now worth more than General Motors (NYSE:GM), Ford and Fiat Chrysler (NYSE:FCAU) combined, even though the Big Three together sell more cars and trucks in two weeks than Tesla does in a whole year. But all of these conventional automakers (and their customers) significantly contributed to polluting the planet, the price each living creature on Earth is now paying. And Tesla is not only bringing the promise of EVs, but further pushing the limits of what other automakers can do. This surely is a quality of a leader who breaks boundaries and pushes limits for the greater good. Se we all might indeed be Tesla’s customers sooner than expected by many Tesla fans!

Franchise Holdings International Inc (OTC:FNHI)

Speaking of sustainability, FNHI’s Worksport has already now an admirable portfolio of intellectual assets. This company provides truck tonneau covers and is soon to be the world’s very first company to produce solar-powered tonneau covers. The ambitious TerraVis development will modernize pickup trucks with cutting edge-technology that uses solar energy. And with a very important ingredient as its solutions are both affordable and dependable. So basically, this unique company is giving to the world both innovative and sophisticated variations that the pick-up truck market more than lacks.

Roku (NASDAQ:ROKU)

So called the Facebook (NASDAQ:FB) of TV, this fast-growing company is misunderstood to many, as its stock reflects the not-so-rare shift between the friend and frenemy zones during these so-called streaming wars. As Apple (NASDAQ:AAPL) and Disney (NYSE:DIS) entered the picture and disturbed Netflix’s (NASDAQ:NFLX) throne, Roku’s business model has only benefited from all this competition. But Roku is now becoming less impartial with Roku Channel and ass advertising has become a bigger piece of Roku’s business, we’re about to see how sustainable is the business model of this leading supplier of innovative and easy to use digital media products.

Amazon (NASDAQ:AMZN)

The giant who redefined e-commerce seemed to be on thin ice with so many competitors stepping up their game. The major competitor in the cloud sector being Microsoft (NASDAQ:MSF), a pioneer on its own, who not so long ago won the $10 billion JEDI contract showing its strength over AWS when it comes to experience and tooling, but also the beyond angry Oracle Corporation (NYSE:ORCL) and IBM (NYSE:IBM). But Amazon is fighting back for the JEDI saga to continue, recently asking a U.S. federal court to stop the Pentagon from implementing the contract with Microsoft. On the other side of its business, there is Walmart (NYSE:WMT) e-commerce sales rose 41%, which was sequentially higher and above analysts’ estimates. However, Amazon pulled out the big guns with its latest massive earnings beat that beyond topped analyst expectations both for top and bottom lines. With this blockbuster quarter, it has not only shown that is AWS delivers on the promise but that the company as a whole can deliver better results when it needs to. And when investors are starting to lose hope due to rapidly rising costs, it was as good time as any!

And there are upcomers on the horizon…

There’s even a ‘Tesla of the space industry’ but stock-wise, it’s actually not Space X that Elon Musk owns as it is not publicly traded, but rather its rival Virgin Galactic (NYSE:SPCE) that has gained the title of ‘Tesla of the Space Industry’. Sometime later this year, the first WhiteKnightTwo mothership (WK2) will take off from its Spaceport America in the New Mexico desert for a ticket price of $250,000. Six passengers will get a short glimpse of Earth as an orb, before descending to land airplane-style back at the spaceport. And when it does that, Virgin Galactic will become just as much a pioneer in space tourism, as Tesla was when it debuted with electric cars. Although the company isn’t profitable and is burning out cash quickly, like Tesla, also all of the advantages Tesla claimed for itself as the first electric car maker to go public could now benefit Virgin Galactic as well. The company gained the ability to use its shares as “currency’ and it is the only one in its highly competitive sector to do so, helping it possibly to break out from the pack. It sure is doing a good job since its share price has nearly tripled in two months.

Just make sure you enjoy the ride!

There are indeed a lot of innovators out there, set to change the world and our everyday lives. The competition is intense and is getting even more fierce by each passing day. But whether you are an investor or not, make sure that you do enjoy the ride of living in such exciting times!

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com
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BenzingaEditorial

The Growing Specialty Car Equipment Industry Brings Unlimited Opportunities

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Ford News

There are 225 million licensed drivers in the U.S with 85% of total adults. And they drive 278.1 million vehicles, made of 158.6 million light trucks and 119.5 million passenger cars that are on the road. The vast majority of the 278 million vehicles are less than 20 years old. Despite the fact that there is a constant flux in the ownership of cars and trucks, currently, the number of cars coming on to the road outpaces those being retired. This expanding vehicle population offers more opportunity for the aftermarket- the industry of specialty car equipment.

Future trend

Over the next few years, passenger car sales are expected to drop whereas demand for light trucks is expected to increase as the growth in CUVs is coming largely at the expense of traditional car sales. By 2025, SEMA projects that light trucks that include: pickups, SUVs, CUVs and vans, will represent 69% of all light vehicles sold. And if gas prices and the economy don’t become limiting factors, light truck sales are expected to continue outpacing passenger cars.

While accessorizing can occur anytime during a car’s lifecycle, most modifiers tend to upgrade their vehicles within the first few months of purchasing their vehicle, whether it is new or used. But vehicle preferences are changing and so is this overall landscape with 27% of drivers purchasing specialty-equipment parts each year with 34.9 million households accessorizing their vehicles also on a yearly basis.
Overall, the specialty-equipment market has been growing about 5% per year, reaching a new high of nearly $45 billion in 2018 and it is expected to continue unless prevented by a weakening macroeconomy.

Electrification

Despite the increasing interest for this trend that will shape the future, electric vehicles comprise less than 1% of light vehicles on the road whereas hybrids are now the only alternative to have a notable share of registrations. So, it will take some time to change the landscape of the U.S. light vehicle fleet.

Opportunities exist across vehicle segments

Pickups remain the largest segment for the industry and besides being a versatile platform for accesorization, they are the most common segment on the road and are expected to sell well in the future. CUVs are an emerging opportunity with a lot of them on the road and their popularity growing further, and supposedly they will be accessorized similar to SUVs. But despite the growth of CUVs, full-size pickups remain the most common vehicle subtype on the road. In 2018, pickups are what drove the most sales in the specialized equipment sector.

Tops vehicles for accesorization – pickups

Based on its opportunity scores, full-size pickups top the overall list as they are the perfect platform for accessorization, both in terms of utility enhancement as well as ‘enthusiastic’ additions.

General Motors (NYSE:GM) is taking first place with its full-size pickup with 17.6 million vehicles in operation. GM is the fourth major company who left the Plastics Industry Association this year possibly due to pressuring environmental policies although they didn’t disclose the reason why they didn’t renew their membership. The company just unveiled its electric pickup with two BOLT EV batteries. Their Chevrolet E-10 Concept combines vintage style with the futuristic technology needed to achieve zero-emissions.

The second place is taken by Ford Motor Company (NYSE:F) F series pickup with 15.6 million operating vehicles. Ford has also just revealed a one-off electric Mustang for this week’s annual Specialty Equipment Market, a place where lots of futuristic prototypes are born. With just two weeks until Ford unveils its first mass-market EV, a Mustang-inspired SUV codenamed Mach E, you can imagine where Ford’s multibillion-dollar investment into electric vehicles is headed.

Third place goes to Fiat Chrysler Automobile’s (NYSE:FCAU) RAM who just got patriotic with “built to serve” editions that honor the US Military. Its pickup has 7.6 million operating vehicles on the road.

Fourth place is taken also by FCA’s Jeep Wranger (2.9 million vehicles), followed by Ford’s Mustang (2.2 million), GM’s Chevrolet Tahoe (4 million) and Camaro (1.3 million,), FCA’s Dodge Challenger (529K), GM’s Chevrolet Corvette (814K) and last but not least, Toyota Motor Corporation’s (NYSE:TM) Toyota 4Runner with 1.9 million operating vehicles.

But older cars still represent an important market for the equipment industry and there are some notable differences within their rankings as Bayerische Motoren Werke Aktiengesellschaft’s (OTC:BMWYY) BMW 3 Series with a long history of model generations appears, as well as Chevrolet’s Corvettes make an appearance on that list. Interestingly, it is BMW’s new SUV models that boosted the company’s net profit that increased 11.5 percent from a year ago to $1.72 billion in the third quarter despite increased spending on electric technology. The fact that revenues increased 7.9 percent is great news after the company was quite disrupted in the same period last year due to new emission policies that impacted costs and distorted its supply chain.

Projected sales – optimistic

GM and Ford’s market dominance in the pickup segment is expected to continue with sales of an additional 12 million trucks by 2026, followed by RAM Pickup of 3.7 million. But Toyota’s prospects are looking up with Toyota Tacoma (1.7 million) – 4th place and Toyota Tundra (769K) 6th place, with Chevrolet Colorado at 5th place (1.1 million). Newer pickups from Toyota tend to get the most attention from accessorizers, especially the mid-size Tacoma. With 3.2 million Tacomas on the road today and 2 million Tundras, it is an indication that strong market exists for specialty-equipment markets within the Toyota pickup space. On Tuesday, the company announced significant changes in its North America division, such as establishing the Manufacturing Project Innovation Center and naming new leaders to enable its manufacturing team to better respond to customers’ needs. The Japanese giant plans to invest $13 billion in its U.S. manufacturing plants by 2021.

Ford Ranger (648K) took 7th place, but the list also introduces Nissan Motor Co’s (OTC:NSANY) Frontier (506K). Nissan just unveiled its Ford Ranger Raptor rival, also as a tease for the 2019 SEMA auto exhibition. At the recent Tokyo Motor Show, Nissan executives said the company is working on hybrid technology.

Speaking of hybrid, one of the companies that will surely benefit from this light truck accesorization is Worksport that is owned by Franchise Holdings International Inc. (OTC: FNHI). The company which is one of the fastest growing manufacturers of truck bed covers in the US, just won its third U.S. Patent for innovative and affordable truck bed cover system, surely a monetizable development for the company. The patented hybrid model will be officially launched later this year. The company also launched a new website in its effort to become synonymous with the experience of driving a pick-up truck. Worksport was launched with a mission to create a brand-new market for all those truck drivers who weren’t satisfied with the available market offerings and not only did they succeed in creating that segment, but they have quite a perspective for future growth!
Bright future for pickups- even brighter for specialized equipment!

The conclusion is that consumer demand for pickups is expected to continue well in the future, so they should remain highly accessorized platforms. Yet, as large and often more expensive vehicles, trucks can be more susceptible to changes in the economy. So, in case of a weakening economy, consumers may tend to hold on to their older vehicles or switch to more economical options, but this is even better news for specialized equipment industry. But provided consumers feel confident in the current economic environment, both pickup sales and of their accessories will continue to grow. So, either way, specialized equipment for light trucks has a bright future ahead!

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com
Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Uber’s Losses Keep Accumulating Yet Positive CEO Expects Profitability in Two Years

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Uber Stock News

Uber Technologies (NYSE:UBER) has been through a rough patch since its IPO in May as the company lost a third of its value since then. Now, the company reported its third quarter earnings which show it is continuing its losing streak, causing its stock to go down nearly 7% following the report. With its main competitor Lyft (NASDAQ:LYFT) facing the same struggle, the company has a goal to achieve profitability for the full 2021 fiscal year.

Third quarter earnings

On the bright side, the ride-hailing giant picked up its revenue growth as it increased 30% comparing to the same period last year, achieving $3.81 billion, topping expectation of $3.63 billion by analysts polled by Fact Set. Uber convinced more consumers to use its range of services as its number of monthly active consumers grew 26% from the same time last year, reaching over 103 million.
But transitioning to its bottom line, the company ended up losing $1.16 billion, continuing its losing streak. And this third-quarter loss also includes $401 million in stock-based compensation due to its initial public offering. However, the per-share loss in the latest quarter of 61 cents a share was better than the analyst expectation of 81 cents per share according to Forbes.

Competition

It’s rival in the US isn’t doing any better, in fact Lyft’s value dropped about 40% since its IPO price. But last week after it reported its third-quarter earnings it managed to beat analyst expectations which many analysts saw as a signal that the company might arrive to positive earnings more quickly than previously expected (but those before interest, tax, depreciation and amortization). Executives at Lyft also expect the company to become profitable in the fourth quarter of 2021. But Lyft is only present in the U.S. and its scope is only about people, whereas Uber gets much more competitors due to its Uber Eats segment like GrubHub (NYSE: GRUB) whose stock just got crushed due to weaker than expected Q3 results, poor forecasts with customers becoming less loyal to a single platform. But Uber Eats’ revenue managed to grow an impressive 64% year-over-year and amounted to $645 million despite being withdrawn from South Korea in September due to pressuring competition which is also present in other countries.

On the other continent, Russia’s Yandex (NASDAQ:YNDX) that is registered in the Netherlands and listed on the U.S. exchange, suffered a 19% drop in its value in one day, wiping $2 billion from its market capitalization. The company reported a strong third quarter earnings that managed to beat estimates as revenues increased 39% over the quarter and expecting them to grow 36-38% more than last year, making it already a profitable division eight years after its inception.

Yet this wasn’t enough to prevent shares from slipping back due to underlying concerns as investors find that the company is vulnerable to potential developments in Kremlin and specifically, regulating the tech sector and limiting foreign power in IT companies.
Meanwhile, France’s Kapten is already the second-largest ride hailing app in London only 6 months after entering the market, with 700,000 customers serviced and 17,000 drivers – setting an ambitious target to double the number of customers over the next year in a market that is twice the size of Paris, with the company’s aim being to eventually move to an all-electric fleet.

Outlook

The-ride hailing pioneer will continue investing in growth and enhancement of its businesses, with Uber Eats surely being one of those domains. But Both Uber and Lyft are facing potentially higher costs for paying drivers due to a new law in California requiring them to classify their drivers as employees. And if their drivers are entitled to a minimum wage and benefits, this could be a cost that can ultimately break these already struggling companies. And Uber already laid off 2% of its workforce since July on the path to cut its losses with the company facing fierce competition in each segment and every country it operates in. In an attempt to get exempt from the new law, the two companies proposed a ballot initiative. But the main problem remains in the unsustainable business model as self-driving cars despite being ‘in the cards’ are surely not ‘just around the corner’, time-wise.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com
Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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