80% of the stock market is now on autopilot

This means so much of stock trading is now in the hands of automated buyers and sellers that the market is increasingly sensitive to headlines and more prone to sharp price swings, many notable investors believe. DoubleLine Capital CEO Jeffrey Gundlach has taken a shot at passive investing, saying it is causing widespread problems in global stock markets. “I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the gl


This means so much of stock trading is now in the hands of automated buyers and sellers that the market is increasingly sensitive to headlines and more prone to sharp price swings, many notable investors believe. DoubleLine Capital CEO Jeffrey Gundlach has taken a shot at passive investing, saying it is causing widespread problems in global stock markets. “I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the gl
80% of the stock market is now on autopilot Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: yun li
Keywords: news, cnbc, companies, trading, market, investing, according, 80, equity, street, autopilot, stock, jp, funds, passive


80% of the stock market is now on autopilot

Traders work on the floor at the New York Stock Exchange, May 23, 2019.

It’s no secret that machines are taking up a bigger and bigger share of investing, but the extent of their influence is approaching shocking proportions. It is as high as 80%, according to one major investing firm.

Passive investments such as index funds and exchange-traded funds control about 60% of the equity assets, while quantitative funds, those which rely on trend-following models instead of fundamental research from humans, now account for 20% of the market share, according to estimates from J.P. Morgan.

This means so much of stock trading is now in the hands of automated buyers and sellers that the market is increasingly sensitive to headlines and more prone to sharp price swings, many notable investors believe.

Omega Advisors founder Leon Cooperman previously said computer trading is creating a “Wild West” with the markets, calling for an investigation by the Securities and Exchange Commission.

DoubleLine Capital CEO Jeffrey Gundlach has taken a shot at passive investing, saying it is causing widespread problems in global stock markets. He called it a “herding behavior.”

“I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the global stock market,” Gundlach said in December.

While algorithmic models have gained popularity on Wall Street, low-cost passive vehicles keep raking in assets from Main Street. Passive funds have attracted $39 billion of inflows so far this year, whereas active funds lost a whopping $90 billion in 2019, according to J.P. Morgan.

“The pace of outflows from Active is at a cycle high while the pace of passive equity inflows has bottomed and [is] beginning to reaccelerate,” Dubravko Lakos-Bujas, J.P. Morgan’s chief U.S. equity strategist, said in a note on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: yun li
Keywords: news, cnbc, companies, trading, market, investing, according, 80, equity, street, autopilot, stock, jp, funds, passive


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Papa John’s will spend additional $80 million on franchisee relief and marketing

Papa John’s said Wednesday that the company will invest an additional $80 million in its domestic franchisees and marketing, as the pizza chain’s struggles put pressure on its operators. “The strength of our brand and of our franchisees are both critical to Papa John’s long-term success. We’re pleased to announce that Papa John’s will make a significant investment in the exciting future of our brand,” Steve Ritchie, Papa John’s CEO, said in a statement. The three-year endorsement deal will net h


Papa John’s said Wednesday that the company will invest an additional $80 million in its domestic franchisees and marketing, as the pizza chain’s struggles put pressure on its operators. “The strength of our brand and of our franchisees are both critical to Papa John’s long-term success. We’re pleased to announce that Papa John’s will make a significant investment in the exciting future of our brand,” Steve Ritchie, Papa John’s CEO, said in a statement. The three-year endorsement deal will net h
Papa John’s will spend additional $80 million on franchisee relief and marketing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: amelia lucas lauren hirsch, amelia lucas, lauren hirsch
Keywords: news, cnbc, companies, franchisee, additional, stock, million, franchisees, company, chain, relief, 80, spend, sales, pizza, papa, johns, schnatter, marketing


Papa John's will spend additional $80 million on franchisee relief and marketing

Papa John’s said Wednesday that the company will invest an additional $80 million in its domestic franchisees and marketing, as the pizza chain’s struggles put pressure on its operators.

The financial assistance agreement between the company and U.S. franchisees, which will begin in the fiscal third quarter of 2019 and end in 2020, has the support of Papa John’s elected franchisee group.

“The strength of our brand and of our franchisees are both critical to Papa John’s long-term success. We’re pleased to announce that Papa John’s will make a significant investment in the exciting future of our brand,” Steve Ritchie, Papa John’s CEO, said in a statement.

Papa John’s has faced trouble since the company’s founder John Schnatter blamed lackluster sales on the National Football League’s leadership in November 2017. Sales took a nosedive, though, after a public relations crisis that ensued after it was reported nearly a year ago that Schnatter used the n-word on a conference call. Revenue fell 11.8% to $1.6 billion in 2018 compared to the previous year.

After he was ousted as chairman, Schnatter sued the pizza chain. He settled with the company in March and has started selling off his stake in the company.

To help keep stores afloat, the pizza chain has been reducing short-term royalties, fees and commissary prices for franchisees. Over the last six quarters, Papa John’s has spent $40 million on financial assistance for its operators and increased contributions to the joint marketing fund.

Papa John’s has also brought in former basketball star Shaquille O’Neal as the new face of the brand and as its first African American board member. The three-year endorsement deal will net him $8.25 million, paid half in cash and half in Papa John’s stock. O’Neal has also invested in nine company-owned Papa John’s stores in the Atlanta area.

Starboard Value has invested $250 million in the struggling chain and installed its chief executive, Jeffrey Smith, as chairman.

The chain’s spat with Schnatter continues to weigh on the business. It swung to a loss during its first quarter and sales declined by 11.5%.

However, Papa John’s steps to turn around its business have been reflected in its stock performance so far this year. The stock, which has a market value of $1.5 billion, is up 22% so far this year but still down 5% over the past year.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: amelia lucas lauren hirsch, amelia lucas, lauren hirsch
Keywords: news, cnbc, companies, franchisee, additional, stock, million, franchisees, company, chain, relief, 80, spend, sales, pizza, papa, johns, schnatter, marketing


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Exclusive: See inside Amazon CEO Jeff Bezos’ new $80 million NYC mega-home

Amazon CEO Jeff Bezos just bought the makings of an $80 million mega-residence in New York City. Exterior of 212 Fifth Avenue CNBCThe sprawling 10,000-square-foot penthouse has five bedrooms, five-and-a-half bathrooms and a seven-room master suite. Great room CNBC”[The master suite] is a dream,” Field told CNBC in October 2018. Great room CNBCDining room CNBCThe penthouse’s second level has a sun-lit lounge area that opens up to 5,000-square-foot terrace. The sun-lit lounge area on the second fl


Amazon CEO Jeff Bezos just bought the makings of an $80 million mega-residence in New York City. Exterior of 212 Fifth Avenue CNBCThe sprawling 10,000-square-foot penthouse has five bedrooms, five-and-a-half bathrooms and a seven-room master suite. Great room CNBC”[The master suite] is a dream,” Field told CNBC in October 2018. Great room CNBCDining room CNBCThe penthouse’s second level has a sun-lit lounge area that opens up to 5,000-square-foot terrace. The sun-lit lounge area on the second fl
Exclusive: See inside Amazon CEO Jeff Bezos’ new $80 million NYC mega-home Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: christopher dilella
Keywords: news, cnbc, companies, megahome, sunlit, inside, terrace, ceo, 80, triplex, master, suite, second, nyc, jeff, bezos, amazon, room, cnbcthe, million, view, penthouse, exclusive


Exclusive: See inside Amazon CEO Jeff Bezos' new $80 million NYC mega-home

Amazon CEO Jeff Bezos just bought the makings of an $80 million mega-residence in New York City. But before the richest man in the world purchased the three-level penthouse at 212 Fifth Avenue, plus two additional apartments, CNBC got a tour of the triplex with Sotheby’s International Realty broker Nikki Field.

Exterior of 212 Fifth Avenue CNBC

The sprawling 10,000-square-foot penthouse has five bedrooms, five-and-a-half bathrooms and a seven-room master suite.

Great room CNBC

“[The master suite] is a dream,” Field told CNBC in October 2018. “There’s a private bedroom, as well as two dressing rooms, two extraordinarily well-outfitted bathrooms, a sitting room, and a home office, numerous closets, magnificent views and privacy from the rest of the home.” Inside the master bathroom is a breathtaking view of the Empire State Building from the tub.

Master bathroom CNBC

In addition to the master suite, the first level of the main residence also has a great room that connects to the home’s kitchen and formal dining room.

Great room CNBC

Dining room CNBC

The penthouse’s second level has a sun-lit lounge area that opens up to 5,000-square-foot terrace.

The sun-lit lounge area on the second floor of the penthouse triplex opens to a 5,000 sq. ft. wraparound terrace. CNBC

Below is a view of Manhattan’s famous Flatiron Building taken from the terrace of the penthouse Bezos has purchased.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: christopher dilella
Keywords: news, cnbc, companies, megahome, sunlit, inside, terrace, ceo, 80, triplex, master, suite, second, nyc, jeff, bezos, amazon, room, cnbcthe, million, view, penthouse, exclusive


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Alphabet loses $80 billion in market cap after revenue miss

Alphabet loses $80 billion in market cap after revenue miss2:49 AM ET Tue, 30 April 2019CNBC’s Elizabeth Schulze runs through the numbers in Alphabet’s latest earnings report.


Alphabet loses $80 billion in market cap after revenue miss2:49 AM ET Tue, 30 April 2019CNBC’s Elizabeth Schulze runs through the numbers in Alphabet’s latest earnings report.
Alphabet loses $80 billion in market cap after revenue miss Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30
Keywords: news, cnbc, companies, revenue, runs, billion, 80, schulze, alphabet, loses, miss249, latest, miss, et, cap, numbers, market, report


Alphabet loses $80 billion in market cap after revenue miss

Alphabet loses $80 billion in market cap after revenue miss

2:49 AM ET Tue, 30 April 2019

CNBC’s Elizabeth Schulze runs through the numbers in Alphabet’s latest earnings report.


Company: cnbc, Activity: cnbc, Date: 2019-04-30
Keywords: news, cnbc, companies, revenue, runs, billion, 80, schulze, alphabet, loses, miss249, latest, miss, et, cap, numbers, market, report


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Prepare for $80 oil this summer as ‘wounded bulls’ rise, RBC warns

International oil prices will average $75 a barrel in 2019, and consumers may find themselves contending with bouts of $80 crude this summer, RBC Capital Markets said. The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions. The bank also boosted its outlook for U.S. West Texas Intermediate crude from $61.30 per barrel to $67 for 2019. The long-to-short ratio reached 13 times “at the peak of the oil price euphoria last fall” and aver


International oil prices will average $75 a barrel in 2019, and consumers may find themselves contending with bouts of $80 crude this summer, RBC Capital Markets said. The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions. The bank also boosted its outlook for U.S. West Texas Intermediate crude from $61.30 per barrel to $67 for 2019. The long-to-short ratio reached 13 times “at the peak of the oil price euphoria last fall” and aver
Prepare for $80 oil this summer as ‘wounded bulls’ rise, RBC warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: tom dichristopher, juan pelegrin, moment, getty images
Keywords: news, cnbc, companies, wti, 80, oil, times, price, prepare, crude, wounded, bank, warns, bulls, rbc, rise, prices, barrel, west, summer


Prepare for $80 oil this summer as 'wounded bulls' rise, RBC warns

International oil prices will average $75 a barrel in 2019, and consumers may find themselves contending with bouts of $80 crude this summer, RBC Capital Markets said.

The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions. Those include steep OPEC supply cuts, robust demand, geopolitical risk and investor positioning that leaves crude futures with plenty of room to run.

RBC’s $75 call for international Brent crude is up from a previous 2019 forecast of $69.50 per barrel. The bank also boosted its outlook for U.S. West Texas Intermediate crude from $61.30 per barrel to $67 for 2019.

“We see price risk asymmetrically skewed to the upside spurred by geopolitically infused rallies that could shoot prices toward or even beyond our high-end, bull-case scenario and test the $80/bbl mark for intermittent periods this summer,” RBC strategists Michael Tran, Helima Croft and Christopher Louney said in a research note.

Brent hit $71.78 and WTI rose to $64.79 this week, the highest levels since early November.

While Brent and WTI have rallied 32% and 40.5%, respectively, this year, the oil trade is not as crowded as it was last year. There are currently about 4.5 times as many long positions in crude futures — bets that oil will rise — as there are short positions, or wagers that the commodity price will fall.

The long-to-short ratio reached 13 times “at the peak of the oil price euphoria last fall” and averaged 8.5 times in 2018, RBC notes.

“In short, there is room to run to the upside given that geopolitical hotspots are still a clear and present danger for the market, but many wounded bulls remain following the Q4’18 washout,” the analysts said, referring to the collapse in oil prices at the end of last year.

RBC expects the 14-nation OPEC producer group to extend its deal to cap output and boost oil prices, keeping the cost of crude near the $75-$80 range many nations need to balance their budgets.

The bank sees signs of strong demand in the Atlantic Basin, where bellwether barrels from the North Sea and West Africa are finding buyers.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: tom dichristopher, juan pelegrin, moment, getty images
Keywords: news, cnbc, companies, wti, 80, oil, times, price, prepare, crude, wounded, bank, warns, bulls, rbc, rise, prices, barrel, west, summer


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Hong Kong is building an $80 billion artificial island to fix its housing shortage

Hong Kong will spend around $80 billion to build one of the world’s biggest artificial islands. The project’s total cost will be around 624 billion Hong Kong dollars ($79.5 billion), Wong said. Hong Kong is home to about 7.4 million people. Although Wong said the new island would help Hong Kong “withstand the increasing pressure of the population,” the plans have faced criticism. The idea for the development of an artificial island was first floated by Hong Kong leader Carrie Lam, who said in a


Hong Kong will spend around $80 billion to build one of the world’s biggest artificial islands. The project’s total cost will be around 624 billion Hong Kong dollars ($79.5 billion), Wong said. Hong Kong is home to about 7.4 million people. Although Wong said the new island would help Hong Kong “withstand the increasing pressure of the population,” the plans have faced criticism. The idea for the development of an artificial island was first floated by Hong Kong leader Carrie Lam, who said in a
Hong Kong is building an $80 billion artificial island to fix its housing shortage Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: chloe taylor, nikada, getty images
Keywords: news, cnbc, companies, hong, building, development, housing, fix, billion, 80, island, wong, artificial, kongs, land, shortage, help, kong


Hong Kong is building an $80 billion artificial island to fix its housing shortage

Hong Kong will spend around $80 billion to build one of the world’s biggest artificial islands.

Secretary for Development Michael Wong said in a speech Tuesday that around 1,000 hectares of land would be constructed to deal with Hong Kong’s “serious shortage of land supply.”

The project’s total cost will be around 624 billion Hong Kong dollars ($79.5 billion), Wong said.

The new “land” will be formed near the existing island of Lantau, and will provide up to 260,000 residential units, he added. Seventy percent of the new homes will be public housing.

Hong Kong is home to about 7.4 million people. The territory has its own laws and currency, while traditions of transparency, low taxes and light regulation have helped make it a major global financial center. High demand and short supply have driven property prices to “unaffordable” levels in recent years.

Although Wong said the new island would help Hong Kong “withstand the increasing pressure of the population,” the plans have faced criticism.

Greenpeace responded to Wong’s announcement with a statement urging the government to develop Hong Kong’s former agricultural sites instead, claiming that it would be a more cost effective and environmentally friendly strategy.

Zhu Jiang, senior project director at Greenpeace, said the move was a “retrogression.”

The idea for the development of an artificial island was first floated by Hong Kong leader Carrie Lam, who said in a policy address last year that it would help to ease the housing shortage.


Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: chloe taylor, nikada, getty images
Keywords: news, cnbc, companies, hong, building, development, housing, fix, billion, 80, island, wong, artificial, kongs, land, shortage, help, kong


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80% of employees only care about their paychecks—here’s how to beat anxiety (and actually enjoy work)

The world of work is meant to make you as productive and engaged as possible. However, a whopping eight out of 10 people are simply coming to work for the paycheck. It’s no wonder that anxiety is at an all-time high when we believe that work must entail suffering. But there’s the good news: Two out of 10 of us are actually invigorated by our work. And although the majority view work as a means to an end, for this lucky minority work helps them become more of who they are.


The world of work is meant to make you as productive and engaged as possible. However, a whopping eight out of 10 people are simply coming to work for the paycheck. It’s no wonder that anxiety is at an all-time high when we believe that work must entail suffering. But there’s the good news: Two out of 10 of us are actually invigorated by our work. And although the majority view work as a means to an end, for this lucky minority work helps them become more of who they are.
80% of employees only care about their paychecks—here’s how to beat anxiety (and actually enjoy work) Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: marcus buckingham, guest contributor
Keywords: news, cnbc, companies, ubiquitous, meant, helps, work, anxiety, whopping, view, paychecksheres, transaction, actually, enjoy, world, majority, care, beat, 80, employees, wonder


80% of employees only care about their paychecks—here's how to beat anxiety (and actually enjoy work)

The world of work is meant to make you as productive and engaged as possible. However, a whopping eight out of 10 people are simply coming to work for the paycheck. If you are a part of this majority, then you probably think of work as a transaction — you sell your time and your talent to your employer, and they pay you so you can buy things.

It’s no wonder that anxiety is at an all-time high when we believe that work must entail suffering. One of the most ubiquitous constants in our lives, and especially our jobs, is something that is meant to be endured, not enjoyed.

But there’s the good news: Two out of 10 of us are actually invigorated by our work. These are the people who feel resilient, creative, focused, collaborative, generous and open in their caeers. And although the majority view work as a means to an end, for this lucky minority work helps them become more of who they are. It helps them flourish.

So, how do you become one of these two out of 10 people?


Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: marcus buckingham, guest contributor
Keywords: news, cnbc, companies, ubiquitous, meant, helps, work, anxiety, whopping, view, paychecksheres, transaction, actually, enjoy, world, majority, care, beat, 80, employees, wonder


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As goes January, so goes the year: Old Wall Street indicator puts odds of 2019 gain at more than 80%

Stocks had their best January gains in more than 30 years, and that should mean 2019 will be a pretty good year for the market. The S&P 500 ended 2018 down 6.6 percent, despite rising 5.6 percent in January. This January, the S&P 500 was up 7.9 percent. Yet, Wall Street forecasters have a median target of 2,950 for the S&P 500 at year end, a big leap forward from the current 2,704. “This year, we came in with nothing but bad news – the economy was slowing down….The rest of the world is slowing.


Stocks had their best January gains in more than 30 years, and that should mean 2019 will be a pretty good year for the market. The S&P 500 ended 2018 down 6.6 percent, despite rising 5.6 percent in January. This January, the S&P 500 was up 7.9 percent. Yet, Wall Street forecasters have a median target of 2,950 for the S&P 500 at year end, a big leap forward from the current 2,704. “This year, we came in with nothing but bad news – the economy was slowing down….The rest of the world is slowing.
As goes January, so goes the year: Old Wall Street indicator puts odds of 2019 gain at more than 80% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: patti domm, carlo allegri
Keywords: news, cnbc, companies, goes, stocks, street, best, gain, performance, puts, 2019, 80, sp, wall, gains, odds, market, slowing, rest, 500, old, point, indicator


As goes January, so goes the year: Old Wall Street indicator puts odds of 2019 gain at more than 80%

Stocks had their best January gains in more than 30 years, and that should mean 2019 will be a pretty good year for the market.

That’s what the widely watched January barometer tells you — as goes January, so goes the year. According to Stock Trader’s Almanac, going back to 1950, that metric of January’s performance predicting the year has worked 87 percent of the time with only 9 major errors.

But the indicator also signaled a positive year last year, and the market suffered an unusual late-year sell off, wiping out all of the gains. The S&P 500 ended 2018 down 6.6 percent, despite rising 5.6 percent in January. But the S&P also defied history with a terrible December decline of 9.6 percent, the biggest loss for the final month of the year since 1931.

This January, the S&P 500 was up 7.9 percent. The best January performance since 1987, when it rose 13.2 percent. It was its best overall month since October 2015.

Some market pros worry the sharp snap back in stocks since the late December low means January could be stealing the gains from the rest of the year. Some also believe there could be another test at lower levels in the not too distant future. Yet, Wall Street forecasters have a median target of 2,950 for the S&P 500 at year end, a big leap forward from the current 2,704.

“I’m still struck between the contrast of a year ago and now. We came in last year with nothing but optimism. At this point last year, we had synchronized global growth, confidence had spiked to record post-war highs, and everyone knew we had this steroid-induced earnings boost coming. The thought was how could stocks lose, and of course they did,” said James Paulsen, chief investment strategist at Leuthhold Group

The market has sprung back from December’s low, with the S&P gaining 15 percent since Dec. 26.

“This year, we came in with nothing but bad news – the economy was slowing down….The rest of the world is slowing. We have trade wars. We have the shutdown, and analysts are revising earnings lower. We’re worried about a recession and a bear market. It’s strikingly different, and yet it’s kind of like how can stocks win, but they are and I think they will,” said Paulsen.

Strategists also point to the differences in the way the market traded in each January. This January has been full of volatile swings, with ultimately larger gains than losses. Last year, the market was at the end of a long smooth glide path higher.


Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: patti domm, carlo allegri
Keywords: news, cnbc, companies, goes, stocks, street, best, gain, performance, puts, 2019, 80, sp, wall, gains, odds, market, slowing, rest, 500, old, point, indicator


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PayPal’s Venmo had a break-out quarter with payments surging 80%

Venmo is getting closer than ever to becoming a money-maker for its parent company, PayPal. The company saw $19 billion in payment volume through Venmo in the fourth quarter — an 80 percent increase year over year, PayPal CEO Dan Schulman said on Wednesday’s earnings call. For the full year, Venmo processed $62 billion in payments, a 79 percent increase from a year earlier. The number of people using these services, and making a “monetizable transaction” grew from 24 percent to 29 percent quarte


Venmo is getting closer than ever to becoming a money-maker for its parent company, PayPal. The company saw $19 billion in payment volume through Venmo in the fourth quarter — an 80 percent increase year over year, PayPal CEO Dan Schulman said on Wednesday’s earnings call. For the full year, Venmo processed $62 billion in payments, a 79 percent increase from a year earlier. The number of people using these services, and making a “monetizable transaction” grew from 24 percent to 29 percent quarte
PayPal’s Venmo had a break-out quarter with payments surging 80% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-31  Authors: kate rooney, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, payment, paypal, billion, thats, paypals, volume, schulman, surging, breakout, 80, company, using, payments, quarter, venmo


PayPal's Venmo had a break-out quarter with payments surging 80%

Venmo is getting closer than ever to becoming a money-maker for its parent company, PayPal.

The peer-to-peer payment app notched a record fourth quarter, with growth in key measures as well as in the number of people using Venmo to buy something, instead of just sending money to friends.

The company saw $19 billion in payment volume through Venmo in the fourth quarter — an 80 percent increase year over year, PayPal CEO Dan Schulman said on Wednesday’s earnings call. For the full year, Venmo processed $62 billion in payments, a 79 percent increase from a year earlier. And the company is on track to reach $100 billion by the end of 2019.

“We don’t want to get again too far ahead of ourselves, but we’re pretty pleased with what we’re seeing on Venmo — it’s really going from strength to strength,” Schulman said on a call with analysts.

The app has annual revenue of more than $200 million, Schulman said. But that’s not quite enough for Venmo to make money. Investors will have to wait until at least mid-2019 for Venmo to be in the black, the company’s chief financial officer said.

“The next phase for us is to get Venmo to break even. And that’s not something that’s going to happen in the next quarter or two, but there’s line of sight to that with what we’re doing,” PayPal CFO John Rainey said on the call.

Similar to some of PayPal’s services, Venmo started out as a way to transfer money to friends. It became a part of PayPal through the 2013 acquisition of payment processing start-up Braintree.

Last quarter, Venmo’s revenue was split evenly between instant “Cash Out” and commerce-related items. “Cash out” allows users to transfer a Venmo balance to a bank account within minutes using a Mastercard or Visa debit card, with a 25 cent fee for each transfer.

Venmo’s partners helped boost the commerce side, especially through food ordering services, like Grubhub and Seamless and Uber Eats, PayPal said. Uber and Hulu were also added to the partners list last year. The number of people using these services, and making a “monetizable transaction” grew from 24 percent to 29 percent quarter over quarter.

Elsewhere, PayPal’s results were relatively disappointing. Its $4.23 billion in revenue was slightly below what Wall Street expected but earnings were slightly better. Shares fell more than 4 percent after the results, and traded lower into Thursday.

PayPal’s former parent company eBay continues to be a challenge, with flat volume growth last quarter. Venmo’s total payment volume surpassed the volume PayPal processed from eBay, Schulman said.

Wall Street reactions were mixed. Raymond James maintained an outperform rating on PayPal shares but lowered its price target to $104 from $108 after the results.

“Overall, although we had expected slightly better, the somewhat weaker results were largely due to further deceleration at eBay and therefore we are not overly concerned,” Raymond James analyst John Davis said in a note to clients Thursday. “Perhaps the biggest positive of the quarter was management’s commentary around progress on the company’s Venmo monetization efforts.”


Company: cnbc, Activity: cnbc, Date: 2019-01-31  Authors: kate rooney, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, payment, paypal, billion, thats, paypals, volume, schulman, surging, breakout, 80, company, using, payments, quarter, venmo


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Government debt hits record $66 trillion, 80% of global GDP, Fitch says

Fitch noted that the total U.S. debt is nearly 10 times the size of France, Germany, Italy and the U.K. combined. While the U.S. debt stands out among larger economies, it has plenty of company in the developing world. Fitch said emerging market economy debt surged 50 percent in the period since 2012, from $10 trillion to $15 trillion. Those two regions, though, have less than $1 trillion each in debt. However, credit quality has deteriorated notably over the years, with emerging market debt, ex


Fitch noted that the total U.S. debt is nearly 10 times the size of France, Germany, Italy and the U.K. combined. While the U.S. debt stands out among larger economies, it has plenty of company in the developing world. Fitch said emerging market economy debt surged 50 percent in the period since 2012, from $10 trillion to $15 trillion. Those two regions, though, have less than $1 trillion each in debt. However, credit quality has deteriorated notably over the years, with emerging market debt, ex
Government debt hits record $66 trillion, 80% of global GDP, Fitch says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-23  Authors: jeff cox, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, countries, global, 66, total, president, market, jumped, sovereign, fitch, trillion, emerging, 80, period, hits, record, gdp, debt


Government debt hits record $66 trillion, 80% of global GDP, Fitch says

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Debt in developed countries has remained fairly steady, around $50 trillion, since 2012, though that’s not true of the U.S. Total public debt for the American government has jumped from $15.2 trillion to $21.9 trillion, or 44 percent, during the period, Treasury Department data show.

Fitch noted that the total U.S. debt is nearly 10 times the size of France, Germany, Italy and the U.K. combined.

While the U.S. debt stands out among larger economies, it has plenty of company in the developing world.

Fitch said emerging market economy debt surged 50 percent in the period since 2012, from $10 trillion to $15 trillion. Leaders during that time proportionately were the Middle East and North Africa, with a 104 percent increase, and sub-Saharan Africa at 75 percent. Those two regions, though, have less than $1 trillion each in debt.

The 11 sovereigns rated “AAA” carry 40 percent of the debt load. Lower-rated “B” countries accounted for about 3 percent of global government debt.

However, credit quality has deteriorated notably over the years, with emerging market debt, excluding China, carrying an average rating of slightly below “BB+,” which is the lowest since 2005 and denotes a speculative outlook.

“Common themes that have driven sovereign ratings in the last few years will dominate again in 2019, including tightening sovereign financing conditions, commodity price fluctuations and political and geopolitical developments,” McCormack said. “Slowing economic growth in some countries may bring fiscal concerns back to the fore, particularly given the high starting positions with respect to government debt.”

U.S. debt began accelerating at the turn of the 21st century. The total jumped 85 percent to $10.6 trillion during former President George W. Bush’s two terms, another 88 percent to $19.9 trillion under President Barack Obama and has risen 10 percent during the first two years of President Donald Trump’s term.


Company: cnbc, Activity: cnbc, Date: 2019-01-23  Authors: jeff cox, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, countries, global, 66, total, president, market, jumped, sovereign, fitch, trillion, emerging, 80, period, hits, record, gdp, debt


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