Paypal Holdings Inc (PYPL): Xoom Acquisition A Positive Longterm Catalyst

Yesterday Xoom shareholders approved the company’s merger with Paypal that would give the latter a much-needed edge to effectively tackle growing competition in the online payments segment






Xoom’s merger with Paypal Holdings Ltd (NASDAQ:PYPL) was finalized yesterday after shareholders of the former voted in favor of the agreement proposed two months ago. In a meeting held specifically to discuss the matter stock holders representing more than 95% of the company’s holdings voted yes to the merger with Paypal.

The completion of the deal hinges upon to the waiver of closing conditions by customers and the acceptance of particular consents in connection to the money transferring licenses held by Xoom. Back in July Xoom and Paypal in a joint announcement revealed that the latter would acquire the former for $890 million. This translates into roughly $25 per share.

The announcement was made just three weeks before Paypal was officially spun off from eBay (NASDAQ:EBAY). Xoom’s deal with Paypal is said to officially close out in the fourth quarter of this year.

As per the terms of the deal Xoom will run as a separate service within Paypal. Through this acquisition Paypal can expand its international business by leverageing on Xoom’s extensive network when it comes to cross-country money transfers. Xoom reportedly had around 1.3 million active US customers that transferred $7 billion to people across 37 countries, in the March quarter this year. Paypal CEO Dan Schulman had earlier stated that the move would allow it to strengthen its foothold in emerging markets such as China and India where Xoom has a huge presence.

While the deal does stands to serve as a long-term growth catalyst for Paypal, it seems that it is not fully reflected in the company’s stock price that has shown considerable decline over the past couple of weeks. Paypal stock in the past month alone has underperformed the market amidst a broad sell-off in US equities. The stock has lost 12% compared to the NASDAQ and S&P 500 both of which fell 8%. While much of the fall was the result of macroeconomic concerns relating to the ongoing economic downturn in China, some investment firms think that there are some grave concerns with the company as well.

CLSA analyst Tom McCrohan initiated coverage on Paypal two days ago, with an underperform rating and a $36 price target. Mr McCrohan noted that Paypal will considerably lose out on its market share as the online payments service space becomes overcrowded. The analyst said that for PayPal to achieve mid-20% total payment volume growth, it will have to introduce discount offers to differentiate its offering from alternative srvices. Consequently Paypal shares slumped as much as 6% yesterday closing below CLSA’s price target at $34.29.

Xoom’s acquisition could address these concerns however as it gives the company a much-needed competitive edge to maintain its relevance against newer services. Bidness Etc believes the current pullback is a lucrative opportunity to build long positions on the stock.

Mastercard Inc (MA) Outperform Rating Reaffirmed At Bernstein

Bernstein analysts maintained their bullish stance on Mastercard stock, ahead of its investor day on September 9






Bernstein analysts have reiterated an Outperform rating on Mastercard Inc. (NYSE:MA) stock, with a 12-month target price (TP) of $108, ahead of its investor day on September 9. Bernstein believes that the global payments company will disappoint investors with its new long-term guidance, primarily due to its lack of commitment to additional margin expansion.

Mastercard’s commitment issue about additional margin expansion can ultimately bring down the earnings per share (EPS) growth objectives. However, the analysts expect Mastercard to deliver 18% EPS growth in absence of any margin expansion, which is mainly because of the expected volume growth tailwinds.

Recently, the company announced its intentions to acquire Applied Predictive Technologies for $600 million. Bernstein analysts expect the company to spend more time on the strategic and financial expectations for its recent acquisitions, which are not directly linked to its core business.

Mastercard reported its second quarter of fiscal 2015 (2QFY15) results on June 29; its adjusted EPS was $0.85, which came achingly close to beat its earnings estimate of $0.853. Furthermore, revenues were $2.39 billion, and missed its revenue estimates of $2.41 billion.

Jefferies analysts also weighed in on the stock, and reiterated an Outperform rating, with a $112 TP. They analysts believe that the event will primarily focus on its updated three-year constant currency outlook.

Of the 42 analysts who cover Mastercard stock, 34 suggest to buy, 6 recommend to hold, whereas the rest favor selling it. The 12-month consensus TP is $107.48. The stock closed down 1.28% on Friday, and rose approximately 4% compared to Dow Jones Index, which fell 10% since the start of the year.

Is This The Best Time To Trade In Your Apple iPhone 6?

As the launch of iPhone 6s nears; Bidness Etc explains why its a good idea to trade in the old iPhone soon






Apple Inc. (NASDAQ:AAPL) is expected to announce the launch of the iPhone 6s, at The Apple Event on September 9. Consumers anxiously await the latest edition of Apple's flagship device. As the iPhone 6s launch nears, the key question in the minds of many iPhone users is; is it the right time to trade in the old iPhone? Bidness Etc presents some of the reasons why it makes sense to trade in the old iPhone.

iPhone holds a greater amount of value than other smartphones such as Google Inc.’s (NASDAQ:GOOG) Android and Microsoft Corporation’s (NASDAQ:MSFT) Lumia Series. The reason is not because it’s an Apple product but because it runs on an unusual variety of hardware components that are more reliable than those used in other smartphones. The latest iOS software will be available for different iPhone, iPod and iPad products. Just as the iPhone’s older version has its features, so the latest version has its strengths which should presumably trump the older technology.

The new iPhone has not been launched officially as yet. Once the iPhone 6S is launched; the price of previous iPhones will fall as many consumers switch to the latest smartphone. Gazelle, a phone recycling company, is due to offer an amazing deal to those consumers who want to give their old iPhone 5S, 6 or 6 Plus as a trade-in. The company intends to offer a deal whereby users can trade in a 16 GB iPhone 6 for $300 to $390, depending on the condition of the device and the network it operates on.

The offer by Gazelle ranges between $325 and $400 for a 16 GB iPhone 6 Plus; while a 16 GB iPhone 5s is priced between $165 and $200, by Gazelle. Apart from this, phone carriers such as AT&T, Verizon, Sprint and T Mobile also offer trade-ins. However, none of the wireless providers currently offers a deal as sweet as Gazelle's offers. Apple also intends to offer gift cards to customers who trade in their old iPhone at Apple Stores.

Apple iPhone 6s And 6s Plus: Here’s What Credit Suisse Has To Say

Credit Suisse reiterates Outperform rating, price target of $145 on Apple stock; cites long-term sales growth






Apple Inc. (NASDAQ:AAPL) will sustain the momentum of its sales in China over the long term, assures Credit Suisse, in a sell-side report issued today. The investment firm reiterates it target price of $145 as well as an Outperform rating on the stock.

The report comments on the volatility of the iPhone supply chain, amid concerns of an imminent slowdown in demand in China. However, it highlights that this slowdown in the Chinese economy has not scathed demand for Apple products thus far. It attributes the perseverance in demand to Apple's product quality and brand image.

The report states that the new iPhone 6s and 6s Plus will feature certain improvements in specs and functionality that could drive sustained share gains, as the iPhone-installed base in China is still in expansion mode. Credit Suisse also asserts that Apple’s exclusive ecosystem, a high retention rate, and a moderate product portfolio will help sustain sales over the long term; especially given the company's free cash flow of $64 billion per year.

Total iPhone sales are projected at 234-241 million units for the calendar year 2016, albeit slower growth. The current installed base of iPhones is estimated at 400 million units which continues to grow. Sales are projected to peak at 241 million units, provided the replacement cycle stretches to 29 months.

Credit Suisse believes the iPhone 6S will measure 4.7 inches and 6S Plus will measure 5.5 inches; and that the smartphones will be released on September 9. The specs upgrades expected are 2 GB memory, force-touch technology, an aluminum uni-body casing, and 12 mega pixel (MP) camera lens.

However, the report warns about the possibility of supply bottle-necks. These concerns are primarily on account of the supply chain in Asia because of factory production control component constraints, as a result of low yields. Assemble volumes could suffer if yield does not improve which would in turn, lead to a supply-demand imbalance. Yet Credit Suisse is optimistic about the huge total addressable market for large-size smartphones. Among risks highlighted in the report are; failure to launch innovative products that do not receive traction and competitive pressure from global consumer electronics companies.
Valuation and Price Target

Credit Suisse’s price target is based on a multiple of 13.5x to the earnings per share (EPS) for calendar year 2016. Its calculation includes $12 per share of net cash to be returned by the end of FY16.

41 out of 54 analysts who provide coverage on the stock; recommended a Buy rating. 11 analysts recommend a Hold while two analysts maintain a Sell rating. The consensus 12-month price target is $145.26, which reflects an upside potential of 31.3% over the current price of $110.6.

Apple Inc. Retina Moniker Trumped By Sony Corp 4K Smartphone

Sony appears to have taken all the attention away from the upcoming iPhone 6s, after the Japanese company unveiled the world’s first 4K smartphone






Apple Inc. (NASDAQ:AAPL) currently leads the smartphone industry with its iPhone and is likely to do so in the future as fans anxiously await the launch of its latest model. Apple is expected to introduce major under-the-hood upgrades in the upcoming iPhone 6s, however, the upgrades might not match what Sony Corp. (NYSE:SNE) has in store for us with its latest flagship smartphone, the Xperia Z5.

Sony might be the king of the gaming world with its PlayStation but it has struggled on the smartphone front. Although the Xperia series has high-end specs but it fails to compete with the likes of Apple, and Samsung Electronics Co. Ltd. (OTCMKTS:SSNLF). This might be because its smartphones have failed to deliver the promises made in terms of performance.

Sony now aims to deliver a major blow to Apple and other major smartphone manufacturers by introducing the world's first smartphone with a 4K display. The new Sony Xperia Z5 Premium is without a doubt a phablet-sized smartphone, which is well-equipped to trump any competition in its way.

Xperia Z5 supports a design which is fairly similar to previous Xperia models i.e. glass on both sides with a solid metal frame. The 5.5-inch 4K display is the main attraction of the smartphone. The allure to have a 4K screen in your palms is likely to win over many smartphone users.

The phone runs on Google Inc.’s (NASDAQ:GOOG) Android 5.1 and could be upgraded to Android Marshmallow once it is available. It has a Snapdragon 810 processor together with 3GB of RAM. We hope Sony has managed to solve the overheating issues which surfaced on Xperia Z4, as the company is likely to use the same processors in Xperia Z5 Premium.

The best is expected from Sony in terms of cameras. The device will feature a powerful 23MP rear camera, with hybrid auto-focus system which allows it to focus an image in less than 0.03 seconds. The device packs a 3430mAh battery unit. We are yet to see how long it lasts and if it is able to support 4K display.

The upcoming iPhone 6s Plus will go up against the Xperia Z5 Premium and we already see a winner in what appears to be a one-sided battle for now, unless of course Apple manages to pull something unexpected out of the hat.

Google Inc Docs Improved With Voice Typing, Editing History and Explore Option

Bidness Etc looks at the crucial features added to Google Docs; Voice Typing is supplemented by new templates, forms, editing-viewing options and Explore and Research features






Google has officially announced additions to Google Docs as a part of its educational Google Classroom venture. The new additions are useful for everyone, not just students. The most notable addition is Voice typing, a feature that allows users to dictate and enter documents to Google Docs, which will then transcribe them in a text form. Other key additions include a Research tool, Explore tool, new forms and a history tracker that keeps track of all the changes made to a document by various users. Furthermore, users can input their thoughts and even compose entire documents without pressing a single key on the keyboard. Chrome users, on Google Docs, can enable Voice typing from the Tools menu. A simple tap on the microphone button activates the feature which supports over 40 languages. Surely, this feature can save a lot of time, and those who are not habitual of using a keyboard will benefit most from the new Google offering.

Explore in Sheets is, effectively, a substitute for pivot tables in MS Excel. This function automatically creates graphical presentations of data, giving users a real insight into the way that they can manage their crucial data. Users who had to learn the functions of pivot tables might find this update fairly useful. It does not do everything for users but helps create basic graphical representations.

Another crucial addition is the See new changes feature which keeps track of all new changes made to an online Google Docs document. If a certain user has shared a set of documents with multiple users online then the feature enables all of them to modify the docs. This can be extremely helpful for online users who collaborate with each other on some project, but if someone has changed anything crucial in a particular doc, it is possible that the composition or idea is no longer descriptive for readers. Therefore, the new feature allows users to ensure that no unnecessary (or damaging) changes are made to any online document.

The new Research tool has been added to the Android version for Google Docs, allowing users to find crucial information on an article without leaving the Docs app. Google says that this feature is particularly useful for students who want to find facts, images and quotes to enrich their document or thesis. While there is a lot of information available on the Internet, yet not everything is true. So it is best for users to double-check the facts before entering them in a file on Docs.

The new Google Forms make surveying and getting opinions easier, with a variety of new colorful themes which can improve the visual appearance of the form. Users can also insert their own photos or logos, and Google will even pick out the matching color palette for the image. The forms have not changed that much, but the new customizable themes provide users with something new to work with. The feature is similar to the new templates for things such as resumes, reports and portfolios added to the documents, slides and sheets to create better overall documents.

All of this helps reinforce Google’s Classroom, which was upgraded recently, and is a part of the Google in Education initiative. Google has also launched the Share to Classroom extension for Chrome which will allow users to undertake the company’s Classroom initiative. As pointed out by Tech Crunch, Google is perhaps targeting young customers in the same way Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) have done. The idea is to reach young customers early to establish brand loyalty, allowing users to increase with the company.

This is something that many young adults in the US will remember from the days when Apple struck partnerships, and was basically everywhere. Google hopes that integration into the Docs format will help students who excessively use laptops and tablets particularly for Google Docs. Effectively, the Google Docs are looking to replace Microsoft Office, which has been the standard tool for most office and school environments. But given Microsoft’s diverse Education initiatives such as those with Minecraft in Education and its Hololens augmented reality tech, the software company apparently will not give up ground in the education space without competition.

Microsoft Corporation (MSFT) Rolls Out Skype 6.0 On Android, iOS

Microsoft has announced an upgrade for its Skype app on iOS and Android in a blog post






In a blog post today, Microsoft Corporation (NASDAQ:MSFT) announced an update for its Skype application on Android by Google Inc. (NASDAQ:GOOG) and iOS by Apple Inc. (NASDAQ:AAPL). The upgraded Skype app can be downloaded on Google Play and Apple App Store, with specific enhancements rolled out for the iPad.

On Android, Skype 6.0 has been upgraded with a fresh and more attractive design, while bringing the app in line with the software’s overall appearance. The new Skype now includes a floating action button, similar to the one observed in the Gmail app on Android.

The small blue circle with the plus sign in the lower-right corner of Skype on Android, can be tapped to view numerous available options, such as recording a video message, chatting, or starting a video or voice call. Skype says the revamped app makes it easier for the user to view the number of unread messages at a glance.

Skype for the iOS, on the other hand, brings improved navigation options. Users can now scroll through conversations with more ease. Swipe gestures have been added for making calls and managing conversations. Swiping left to right on a contact shows calling options, while swiping in the opposite direction shows terminating options, such as deactivating message notifications for a specific contact or conversation, deleting a conversation, or to mark a message as unread.

The major upgrade in Skype though, is for the iPad. It makes it easier to send and receive photos and videos, share locations, and display emoticons that are larger in size than the ones on the iPhone. The upgraded Skype app on the iPad will most likely attract many users who were beginning to find it monotonous.

The enhancements have come only for the iOS and Android, although Skype 6.0 is also rolling out to other mobile devices. The reason Microsoft is upgrading its technologies and services is probably because of its plan to make a comeback on smartphones.

After the acquisition of Nokia's (NYSE:NOK) mobile business, the software maker has struggled with the smartphone side of things. In the past year, Microsoft lost its position as the world’s third biggest smartphone retailer. Since Windows 10 was rolled out as the standard operating system for all computing platforms, the company is possibly planning its comeback in smartphones through this. As the tech giant develops apps and enhances others, it is safe to assume that the company has tricks up its sleeve, after the mobile version of the new Windows is rolled out this fall.