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BenzingaEditorial

COVID-19 Vaccine Does Not Threaten PayPal

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Paypal stock market news

PayPal Holdings (NASDAQ: PYPL) has long enjoyed the title of the ultimate online payment system for a reason. It’s the leader in this young industry. Moreover, in the new, stay-at-home normal, PayPal became essential. But when news broke on Monday that Pfizer (NYSE: PFE) had released promising data on the 90% efficiency of its coronavirus vaccine candidate, some tech companies, PayPal included, plunged. The question imposed is will PayPal suffer if a vaccine lets people get back to shopping outside of their homes?

Q3 earnings report

At the beginning of the month, PayPal delivered strong third quarter results as it enjoyed both a surge of new customers and a record number of transactions. 15.2 million net new active accounts were added with total active accounts now amounting to 361 million.

Moreover, it processed a record-setting $247 billion in total payment volume during the quarter. Moreover, there were 4 billion payment transactions, or roughly 40.1 payment transactions per active account. Total payment volume increased 37% to $247 billion.

Net income amounted to $1.02 billion, or 86 cents a share. Non-GAAP earnings were $1.07 per share on revenue that surged to $5.46 billion, marking a 25% YoY increase. The figures exceeded Wall Street’s earnings estimates of 94 cents per share on revenue of $5.43 billion.

The good news did not stop there as its social payments platform Venmo also had its best quarter ever, processing more than $44 billion of TPV, marking an increase of 61% over the same period last year.

The fintech pioneer revealed it’s on track to end the fiscal year with 70 million net new active accounts as 1.5 million new merchant accounts were added during the third quarter, which is more than double the pre-pandemic rate.

CEO Dan Schulman revealed the third quarter was one of the strongest in PayPal’s history. Overall, it was another great quarter in which PayPal benefited from both a surge in online ordering and its leadership position in digital payments. Moreover, along with increasing its userbase, PayPal saw increased engagement with a 30% increase in transactions as the world conducted more business and purchases online.

Outlook

Similar growth metrics are expected for the undergoing quarter, but the surge is prone to be hampered with the potential vaccine. As for total payments, PayPal expects 30% in a low to mid-range. Revenue growth is expected in the range between 20% to 25%, along with 17% to 18% growth in adjusted EPS.

As for analysts, they are eyeing for $6.11 billion in fourth quarter revenue to result in $1.06 a share.

PayPal is the master of fintech innovation

PayPal is more than a payment processor. It’s the undefeated champion of fintech. It’s a master of innovation with a great track record of keeping its relevancy. It was a long time ago when it was the payment option at eBay (NASDAQ: EBAY), after which it acquired Venmo in 2014 to deepen its footprint with offline businesses. PayPal successfully partnered with millions of large and small businesses as it became their payment option.

As for buyers, PayPal makes checkout easy. It offers them a price comparison service which it gained by acquiring Honey. It also added buy-now-pay-later plans.

Last but not least, it finally launched a cryptocurrency trading feature to match Square’s (NYSE: SQ) and profit from the market potential.

PayPal was doing great before the pandemic

The digital retail trend cannot be reversed. It’s been in the making long before COVID-19 started its relentless march across the globe. PayPal was growing long before the pandemic that only fortified its position and helped it become essential. During last year’s fourth quarter when there was no sight of the pandemic, growth in revenue, payment volume and users also came in at double digits. Even after its stock dropped 10% in two days after the news of a potential vaccine, PayPal’s stock was still up 76% year to date on Wednesday. Therefore, all is still well.

Growth is far from over

The pandemic-induced growth further strengthened PayPal’s positioning. Like a true leader, PayPal took advantage of the pandemic trends to further its dominance. Going forward, the digital payment provider will continue investing to create the most compelling digital wallet that embraces all forms of digital currencies and payments. PayPal’s actions show it is determined to continue operating seamlessly in both the digital and physical world. The bottom line is that this is a company that has proven itself over and over again by developing the right products and services while forming the right partnerships. While a vaccine might encourage shoppers to go back to physical stores, there’s no reason to believe PayPal is threatened.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. 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

The EV Industry Is Worth More Than The Traditional Automakers

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Many things that were considered to be impossible actually happened in 2020. One of them is that electric vehicle makers became more valuable than traditional automakers and by about by about $100 billion, according to Barrons. EV makers are now worth about $1.3 trillion whereas traditional car makers combined have a market capitalization of about $1.2 trillion. This figure includes 100 auto makers around the globe with market caps ranging from $10 million all the way to Tesla’s (NASDAQ: TSLA). Based on its fully diluted share count, Tesla is worth about $1 trillion.

This feat is even more impressive if you consider that this is a much smaller industry based on actual number of cars. The last year taught us that the connection between the stock market and the economy is imprecise at best. However, the fact that technology enabled batteries to overpass ICEs is the kind of disruption that investors look for. Even though Tesla is the main contributor to the value of the EV market, the overall image is just as impressive as three of the top five most valuable are EV makers, with Tesla being followed by NIO (NYSE: NIO) and BYD (OTC: BYDDF). As for traditional automakers, Volkswagen (OTC: VWAGY) and Toyota (NYSE: TM) are the most valuable ones with both undergoing serious investments into electrification.

Traditional automakers are going electric

On Friday, BMW said it aims to double its sales of fully-electric vehicles this year. Including plug-in hybrids, it aims for a 50 percent increase in sales of electrified vehicles versus 2020. It did not give sales volumes for its fully electric vehicles but in data released on Tuesday, BMW said it sold close to 193,000 electrified vehicles, including fully electric and plug-in hybris in 2020. As a reminder, Tesla delivered almost half a million all-electric models last year, which is 75% of General Motor’s (NYSE: GM) third-quarter deliveries.

The automotive industry is at an inflection point

BEVs take approximately 1% of the total market for light vehicles, but the figure rises to about 3% if we include hybrid and plug-in hybrids. Why exactly it takes a relatively small market share to disrupt an industry is a bit of a mystery, but one reason is that more investment capital tends to flow in when market share come is within the 3% to 5% range. As more capital drives more innovation and improvement, investors are lured by high growth rates, bringing in even more capital and this is how success is made. Over the past year, EV makers have raised more than $20 billion in fresh capital, which is a fraction of what traditional auto companies spend on plants and equipment. However, on a per car basis, the EV industry is investing at roughly 10 times the rate of the traditional industry. Add to this President Joe Biden’s aim of a carbon-free future by 2035 and the drive toward adoption of EVs which is already seeing impressive results in Europe, the all-electric future is around the corner.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. 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

Europe and EVs- A Blossoming Relationship

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Tesla (NASDAQ: TSLA) delivered around 96,000 units to the key European EV market in 2020. But in Europe, Tesla’s cars were overtaken in popularity by Volkswagen (OTC: VWAGY) and Renault (OTC: RNLSY). Sales of electric vehicles by European car makers accelerated rapidly in 2020 amid severe fines for car markers whose fleets don’t meet new emissions targets and generous incentives for buyers to trade in their ICE vehicles.

Volkswagen

Volkswagen reported it delivered 212,000 electric cars across the globe in 2020, which is 158% more than in the year prior. 134,000 of those vehicles were battery-electric vehicles, which grew 197% compared with 2019. Volkswagen also said that its ID. 3 model was the top-selling car in Sweden in December by absolute numbers. All-electric Volkswagen models were on top the Netherlands and Germany, taking approximately 23% of each country’s BEVs market.

Mercedes Benz

On January 8th, Mercedes-Benz-owner Daimler (OTC: DDAIF) said that the brand sold more than 160,000 plug-in hybrids and all-electric vehicles in 2020, representing growth of more than 228% from 2019. The share of EVs in Daimler’s sales mix rose drastically from 2% in 2019 to more than 7% in 2020. Also, Mercedes-Benz brand remained the world’s top-selling luxury carmaker for the fourth consecutive year.

Renault

Renault reported that it doubled its electric-vehicle sales in Europe. While group sales fell more than 21% in 2020, its EV sales grew 100% growth from 2019 to 115,888 vehicles. Moreover, total orders at the end of December 2020 were up by 14% compared to December 2019, which was attributed to new hybrid offerings. EVs were the only good news in an otherwise bleak 2020 for the French carmaker, which underperformed both global and European car markets. At the very least, Renault avoided fines as it met its 2020 EU emissions targets. On January 14th, its chief executive officer Luca de Meo will present a strategy update which is expected  to include reviving some older best-selling models as all-electric models.

BMW

BMW (OTC: BMWYY) which also owns Mini, said that its two brands combined sold 192,646 electric vehicles in 2020 marking an increase of nearly 32% from last year. BMW also met its 2020 EU emissions targets.

Takeaway

European governments have created generous incentives to speed up the adoption of EVs, making them much more affordable. Come 2025 when emission targets become more stricter and threat of fines for not respecting them even greater, Tesla will certainly be playing against fully-fit opponents and could even potentially struggle. An EV-only future looks closer than ever in Europe as the race is now on to challenge Tesla’s leadership.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. 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

Lenovo Makes Its Star Market Debut

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The COVID-19 pandemic had completely changed the way people work and learn. Operating from home actually turned around declining PC sales. Smartphones have been picking more and more market share from PCs and if there was no pandemic, this would probably still be the case. But instead of decreasing demand, there was record growth in PC sales as video collaboration software was needed to fulfill the need caused by closed offices and schools. The demand generated months and months of production. According to Reuters, sales of desktops, laptops, and tablets are expected to reach the level of 300 million shipments, the first time after its peak in 2008. This made all the PC manufacturers like Dell Technologies Inc. (NYSE: DELL), HP Inc. (NYSE: HPQ), and Lenovo Group Ltd. (OTC: LNVGY) very happy.

Lenovo CDR story

China’s Lenovo Group is listed at the Hong Kong stock exchange, with about 12.04 billion shares outstanding in total as of January 12th. The company decided to issue Chinese Depository receipts (CDRs) which will be up to 10% of the total number of shares to be listed on the Star Market of the Shanghai Stock Exchange. The proceeds from the issuing of CDRs is planned to help the company’s research and development of new technologies, development of new products and solutions, and overall strategic investments in core segments. On Wednesday, the news caused to stock to drove the stock to its highest level since 2015.

The Star Market

The Star Market was launched in 2019 aiming for innovative technology companies that need more relaxed listing rules. In December, the Star Market counted 200 companies. A CDR or Chinese Depositary Receipt is a way for non-Chinese companies to list their shares in China. This is the equivalent to American depositary receipts (ADRs) which allow non-U.S. companies’ shares to trade on American exchange markets. Technically, CDRs and ADRs are not companies’ shares, but they represent an equity interest in a company. Besides Lenovo, an AI startup that specializes in facial recognition called Megvii Technology Ltd will also be among the first companies to benefit from this new structure.

Conclusion

Lenovo’s listing should be a breakthrough for Shanghai’s Science Technology and Innovation Board. Lenovo, a flagship of the Star Market, should attract much more followers and clear a path for many Chinese start-ups to raise capital in their home country. The company’s strong and growing global presence should continue to demonstrate the boom of China’s capital market and attract more investors to invest.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. 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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