PayPal-SoftBank showdown in Latin America
There’s no end in sight to what now looks to be a clear tit-for-tat between PayPal (PYPL) and SoftBank (SFTBF), the parent company of American mobile operator Sprint (S). Less than a week after SoftBank launched a new $5.0 billion fund to invest in Latin American technology startups, PayPal announced that it was investing $750 million in the purchase of a stake in MercadoLibre (MELI), Latin America’s leading e-commerce and digital payment company.
For its special Latin American tech fund, SoftBank identified e-commerce and digital financial services among its particular areas of focus. In light of this, a showdown is brewing between PayPal and SoftBank in Latin America’s digital economy.
SoftBank backs PayPal’s rivals in Japan and America
Through its recent actions, SoftBank has shown that it wants to give PayPal a serious run for its money in the digital payment space. Last year, SoftBank teamed up with Paytm to launch a PayPal-like mobile payment service called PayPay in Japan, one of PayPal’s key international markets. Paytm, backed by deep-pocketed corporate giants such as Alibaba (BABA) and Berkshire Hathaway (BRK), is one of PayPal’s fiercest rivals in the Indian digital payment market.
In the United States, SoftBank is seeking to merge Sprint with T-Mobile (TMUS). This merger is set to come after T-Mobile launched a financial service called T-Mobile Money last year to compete with PayPal.
So far, PayPal is taking the competition from SoftBank in stride and has continued to add new customers. During the fourth quarter, PayPal added more than 13 million new customers to close the year with 267 million active customers on its platform.
PayPal (PYPL) recently introduced an instant bank transfer option for its customers, with the option initially rolling out to customers in the United States.
Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.
Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.
On March 18, Chesapeake Energy’s (CHK) implied volatility was 51.9%, which is ~14.7% less than its 15-day average.
Sprint (S) reported an adjusted EPS of $0.06 in the first nine months of fiscal 2018—compared to $0.08 during the same period in fiscal 2017.
On March 18, Brent crude oil May futures settled ~$8.2 higher than the WTI crude oil May futures. On March 11, the spread was ~$9.5.
Out of the 34 analysts covering Broadcom (AVGO), 25 analysts rated the stock a “buy,” while nine analysts rated the stock a “hold."