Thursday’s Headlines: Can Google Kill PayPal?

Thursday’s Headlines: Can Google Kill PayPal?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Tesla Motors (TSLA) +10.2%

Eventbrite (EB) +5.0%

Tripadvisor (TRIP) +3.7% (BILL) +3.5%

Zoom Communications (ZM) +3.3%

Moving Down ⬇️

Yext (YEXT) -5.3%

Boston Beer Co. (SAM) -4.6%

Ctrip (TCOM) -3.8%

Casey's General Store (CASY) -3.6%

Calavo Growers (CVGW) -3.4%

1. Shares in PayPal (PYPL) and Square (SQ) fell following Google’s (GOOG) ‘Google Pay’ revamp unveiling yesterday. The new version of the product will have three new tabs: Pay, which includes peer-to-peer payments as well as your transaction history using tap-to-pay; Explore, which will be a place where Google will offer deals and discounts; and finally, Insights, which will allow you to connect your bank accounts to get a searchable overview of your finances. It doesn’t stop there, with other features such as receipt auto-scanning, bank partnerships, and more in the pipeline for 2021. Not all of these services are strictly new for Google, but this will mark the first time they’re unified into a single product, representing a greater single threat to pure-plays like Jack Dorsey’s Square. Read the full story here

2. After hovering around the flat line for most of the day, stock futures turned sour in the final hour of trading on Wednesday, with the Dow Jones (DIA), S&P 500 (VOO), and Nasdaq Composite (QQQ) falling 1.2%, 1.2%, and 0.8% respectively. The dip comes despite positive news for one of the U.S.’s most prominent manufacturers, Boeing (BA), which finally had its once-flagship 737 Max jetliner cleared by the FAA to fly after a 20-month grounding. Boeing has a backlog of more than 3,000 737 Max planes when factoring out orders that the manufacturer believes could be canceled. Prior to the coronavirus, Boeing was America’s largest single exporter, representing $101 billion in exports in 2018, prior to the 737’s grounding. Now it has the daunting task of navigating sales amidst a pandemic that has crippled the airline industry. Read more about it here

3. In what amounts to little more than an olive branch-shaped slap in the face to the likes of Epic Games and Facebook (FB), Apple (AAPL) on Wednesday announced its new ‘App Store Small Business Program’. The iPhone-maker will cut its App Store commission rate to 15% for software developers with less than $1 million in annual net sales on its platform from January 1, following months of scathing backlash over its 30% commission policy. Though this is no doubt a great boost for small app developers who will now double their iOS gross profit, it has done little to abate the anger of the policy’s greatest opponent, Spotify (SPOT), which reiterated its position Wednesday that Apple’s commission business is “arbitrary and capricious”. Given Spotify’s own issues regarding artist pay, it seems we have a typical ‘pot calling kettle’ scenario here. Read Apple’s official release here

There is 1 company on the MyWallSt shortlist that will report earnings during market hours today:

Copart (CPRT)

Intuit Inc (INTU) 

Workday (WDAY)