Category Archive : Stock Market

How the Facebook Libra Announcement Affected Shares of Western Union, MoneyGram, PayPal & Square

Western Union shares declined Tuesday amid the Facebook announcement of its new cryptocurrency, Libra, which is supposed to be integrated with Facebook, and its subsidiary apps Instagram, WhatsApp, and more. Western Union, a legacy consumer-to-consumer money sending platform was among the worst performers on the S&P Index on Tuesday, as it fell 2.4%. It closed at $19.57 a share.

Facebook’s cryptocurrency Libra is supported by a legion of well-known companies from both within the crypto industry and outside of it, including payment companies like Visa, Mastercard and PayPal. Blockchain companies involve Coinbase, Xapo and others. The cryptocurrency is expected to launch in the first half of 2020. Read More

Uber, Lyft IPOs Means Fewer Rider Promotions



The Uber stock trend is still unclear this morning after increasing 1% Friday. Uber lost $1 billion last quarter, which is not as bad as they had warned investors to brace for. Uber’s aggressive growth plan has cut into its profit. It financed its expansion into new markets. 

In the first three months of 2019, Uber brought in over $3 billion in revenue, marking a 20% jump from the same quarter a year earlier. Uber did not, however, offer its full-year revenue, which dampened confidence in the stock’s outlook due to a lack of transparency.

Uber’s stock fell immediately upon its IPO, finishing one day lower than it started, and have yet to trade at or above the value set for its initial offering. Its stock was up over 1% during early trading on Friday.

The ride-hailing and food delivery company is still expanding while fending off South American competitor Didi, while Lyft is formidable competition.

Uber’s first-quarter earnings report released Thursday revealed that Uber’s pricing would soon increase while its growth slows. Uber has relied on cheap wages for its drivers and subsidizing fares.

“We expect to deploy fewer consumer promotions in Q2 of 2019,” Chief Financial Officer Nelson Chai said.

Uber shares gained after the stock market closed on Friday. The shares gained 70 cents, or 1.76%, to $40.50 in early trading on the New York Stock Exchange. The company sees long-term profitability in autonomous vehicles.

Lyft shares increased more than 5% on Friday, gaining more than $800 million in value. The market cap is now $16.8 billion compared to Uber’s $67 billion. Just like Uber, Lyft has incurred large losses thanks to consistent promotions. Lyft reported an adjusted per-share loss of $9.02.

“While there is no guarantee that this will last, we believe that over the next 12 months both will focus more on competing via service innovations (micro mobility, loyalty etc), which should provide a significant tailwind to Uber’s unit economics,” Atlantic Equities analysts wrote in a note Friday, upgrading its rating on Uber from neutral to overweight.

Now that both ride-sharing services are public, riders can expect fewer deals. But, if price point becomes a determining factor for riders, then Uber likely has the advantage, since Lyft is a quarter of the size of Uber.



Pot Stocks Face Profit-Taking If Stocks Erase Gains

(GSB) – Alongside stock market losses, cannabis stocks were mixed Thursday ahead of the first public hearing by the U.S. Food and Drug Administration aimed at providing information on the substance and its ingredients. The goal of the hearing is a regulatory framework for CBD. The hearing comes after Congress legalized CBD, which is derived from the hemp plant.

The FDA will listen to testimony from proponents and opponents to CBD, which the FDA has yet to fully research. The watchdog views CBD as a drug. The FDA has only approved one drug with CBD: GW Pharmaceuticals PLC’s Epidiolex, which treats childhood epilepsy.

Companies hoping to launch edibles and beverages with CBD are expected to present evidence for the benefits of the substance.

The FDA has cracked down on companies claiming that CBD treats illnesses, which the Administration argues is not back by scientific evidence.



If the FDA doesn’t act swiftly, Congress would then be tasked with creating a CBD regulation framework. Friday’s hearing, which includes cannabis industry pioneers, entrepreneurs, politicians, scientists, and doctors, won’t lead to immediate regulations.

Marijuana Business Daily reports that U.S. retail cannabis sales should rise 35% in 2019, approaching the $30 billion mark by 2023.

“Interest continues to skyrocket,” said D.C. attorney Miriam Guggenheim, co-chair of the food, drug and device practice group at Covington & Burling. “It is mainstream, interest is mainstream. It is not fringe anymore, which doesn’t mean mainstream companies are ready to jump in. But they want to be prepared to do so once the legal landscape is clarified.”

Stocks

Cresco Labs Inc. shares were up 4.7% early Thursday. The company reported positive first-quarter earnings. The operator, which is based in Chicago and serves multiple states, claimed a net loss of $7.6 million. Revenue rose 300% to 21.1 million and was up 24% from the quarter prior.

MedMen Enterprises Inc. shares fell 3.5% after the company said it would cut executive salaries due to growing losses, which in the fiscal third-quarter comprehensive net losses of $63.1 million, approximating 20 cents per share.

Trade Via Trend sees cannabis, and other markets as sitting on a support level, with a possible change of trend on the horizon. Pot stocks could be due for profit-taking.

Across the board, the stock market is facing resistance. Since the last stock market correction, pot stocks have traded more in line with the broader market, so expect them to pull back if the S&P does, as well.