Author Archives: Scalper1

Amazon, Apple, Google Not Serious Threat To PayPal: Analyst

PayPal ( PYPL ), now untied from its prior owner eBay ( EBAY ), does not face a serious competitive threat in the near future, an analyst said Wednesday. At the Electronic Payments Summit in New York, panelists were “generally bullish” on the San Jose, Calif.-based company’s chances at holding on to its market share, according to a research note from Jefferies analyst Jason Kupferberg. The analyst cites the company’s installed base of 185 million consumers and 13 million merchants. “This represents a competitive advantage, which is reinforced by new products such as One Touch and Venmo,” Kupferberg wrote. “While some large merchants are still somewhat ambivalent about the benefits of PayPal, one panelist highlighted a 14% online sales increase for a big merchant once they implemented PayPal.” Kupferberg also wrote that large merchants are generally reluctant to have more than two checkout buttons or digital wallets available for shoppers because returns “diminish beyond that number.” Competitors in payments , such as e-commerce leader  Amazon.com ( AMZN ) and digital cash register and payments processor Square ( SQ ), have been aiming for a greater foothold in payments. Amazon has been at it for some time, but with little to show for it, according to Wedbush analyst Gil Luria. For its part, Square announced last week that it was adding Web checkout capabilities to its array of features, which is likely a direct challenge to PayPal’s payments platform. Also at the payments summit, Kupferberg wrote that 10% mobile wallet penetration of U.S. in-store payments could be five years away. Firms such as Apple ( AAPL ) and Alphabet ( GOOGL ) unit Google, among others, have developed such technology . PayPal stock was up more than 1%, near 39, in midday trading on the stock market today . PayPal is an IBD Leaderboard stock and has an IBD Composite Rating of 93, where 99 is the highest. Shares are below a 40.03 entry but just above an earlier entry at 38.62.

Facebook Expands Live Broadcasting Features, Opening Door For Ads

Facebook ( FB ) is bolstering its Live streaming video platform, which should provide more space for advertising to fuel revenue growth. Facebook Live is a platform for mobile-device users to broadcast live video streams on the world’s largest social network. Facebook recently expanded the Live feature to all users, following an exclusive arrangement with celebrities and other public figures. “People are letting their friends discover their hobbies. Parents are using it to share moments in their kids’ lives with their extended families. Athletes are giving people a window into their training. Chefs are bringing their fans into their kitchen,” wrote Fidji Simo, Facebook product management director, in a blog post . The new features include the ability to broadcast only to select groups, such as family. Users can also schedule a live broadcast through Facebook’s Events tab or send out invitations for people to watch. Other features include the ability to add filters that could, for instance, broadcast in black and white. Viewers can also add emoticons to the video feed in order to give a sense of how they feel at different points in the video. There’s also a page dedicated to live broadcasts that people can search. Facebook also rolled out tools that allow broadcasters to see how many people are watching their videos, either live or archived, when they watch and for how long. The tools could be especially valuable for business owners and advertisers. Facebook did not say if it would place advertising on the video feeds but didn’t rule it out. Historically, Facebook has introduced new ad-free platforms, then gradually inserted ads down the road. Speculation is rising that Facebook will open its Messenger chat service to content publishers and ads, creating a multibillion-dollar revenue opportunity and posing a growing threat to Alphabet ( GOOGL ). Facebook Live is comparable to the Twitter ( TWTR ) Periscope app, which launched last year and has logged more than 100 million broadcasts. Twitter has integrated Periscope into the Twitter app feed. The new Live features will be rolled out on the Apple ( AAPL ) iOS and Alphabet Android over the coming weeks. “We’ve been humbled by all the amazing and creative ways that people have used Facebook Live so far, and we’re committed to creating the best experience for everyone who wants to create, watch and interact with live videos on Facebook,” Simo wrote. Facebook stock was up 1% in midday trading on the stock market today , near 113.