Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Are These Five Stocks Trending?

Follow Apple Inc. (NASDAQ:AAPL)
Trade (NASDAQ:AAPL) Now!

Apple Inc. (NASDAQ:AAPL) and Paypal Holdings Inc (NASDAQ:PYPL) are trending after the Wall Street Journal reported that Apple and banks are in talks over a potential mobile P2P payment service. Paypal’s Venmo app currently dominates the person to person payment space. Although financial payments revenue won’t mean very much to Apple’s top or bottom lines, an Apple P2P payment service would be another way for the company to keep customers in its ecosystem. The more people in Apple’s ecosystem, the more high margin iPhones Apple sells and the more programmers make apps for Apple first. With hundreds of billions of cash on its balance sheet and a forward PE of 10.7, Apple shares look cheap. Carl Icahn’s Icahn Capital LP owned 52.76 million of Apple shares at the end of June.

Although competition from Apple would hurt, Paypal will still be okay, as the majority of the firm’s transaction fees come from merchant payments not P2P payments. Paypal still has an opportunity to become the leading next generation bank in the same way that Amazon is the leading next generation retailer. Paypal shares trade at a reasonable 24 times forward earnings given the stock’s growth prospects.

Follow Paypal Holdings Inc. (NASDAQ:PYPL)
Trade (NASDAQ:PYPL) Now!

Disclosure:None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...