Hey Gotraders,
Payments giant Paypal (PYPL) wants to get into the retail trading space. Paypal wants to enable its users to be able to trade individual stocks and is considering a stock trading platform.
Paypal recently hired brokerage industry veteran Rich Hagen as CEO of “Invest at PayPal”, a previously unreported division of Paypal. Hagen was the co-founder of the online brokerage TradeKing, which was acquired by Ally Invest.
There is a possibility that Paypal will partner with or buy an existing broker-dealer in order to offer stock trading to its customers. Or they could seek approval as a brokerage firm alone. It could take more than 8 months to complete the new membership process through the industry’s main regulator, FINRA.
Paypal has decided to expand its services and tap into a booming retail investments market. A combination of stay-at-home orders during the pandemic, government stimulus checks, and meme stock frenzies have fueled interest in the stock market. More than 10 million new individual investors have entered the market in the first half of 2021, according to JMP Securities.
Why is this important? Once launched, Paypal’s stock trading app will be a direct competitor to other companies that offer retail trading such as Robinhood (HOOD) and Square (SQ). Watch out guys! Paypal will be competing for market share soon enough!
Shares of Paypal closed up 3.64% for the day, at $288.47.
📈 South Korea is the first country to implement “Anti-Google” Law 🙅♀️
Google (GOOG) and Apple (AAPL) require developers to pay commission fees as high as 30% when using their app stores.
News just in! South Korea is the first country in the world to do something about this and have legislation in place to stop this. Their Telecommunications Business Act, also known as the “Anti-Google” Law, was submitted to parliament last August and was finally approved on Tuesday!
This could potentially have a ripple effect worldwide, and more countries could start having legislation in place to curb Google’s and Apple’s dominance over the app stores. Uh oh… this isn’t great news for both companies!
Shares of Google are up 68.34% year-to-date while shares of Apple are up 18.32% year-to-date.
📉 Apple acquires Primephonic 🎵
Apple (AAPL) has acquired Primephonic, a classical music streaming service. Primephonic will shut down for good on 7th September, and will later be integrated into Apple’s Music platform.
“Apple Music Classical fans will get a dedicated experience with the best features of Primephonic, including better browsing and search capabilities by composer and by repertoire, detailed displays of classical music metadata, plus new features and benefits” - Apple.
Shares of Apple closed up 3.04% for the day, at $153.12.
Top movers & shakers 🎢
What else is making headline news 📰
As Warren Buffett turns 91, the legendary investor prepares Berkshire Hathaway (BRK.B) for a new economy.
Oil, gasoline prices rise as Ida kicks hurricane season into a higher gear.
S&P 500, Nasdaq close at record highs as Wall Street looks for a strong finish to August.
Robinhood (HOOD) tanks after SEC chair tells Barron’s that banning payment for order flow is a possibility.
Popular companies releasing earnings this week 💰
Tuesday: Crowdstrike (CRWD), Futu (FUTU), PVH (PVH)
Wednesday: Chewy (CHWY), Copart (CPRT), Jack Daniel’s (BF.B), Asana (ASAN), Five Below (FIVE), Campbell Soup (CPB), C3AI (AI)
Thursday: Broadcom (AVGO), DocuSign (DOCU), MongoDB (MDB), Hormel Foods (HRL), Hewlett Packard Enterprise (HPE)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
Enjoyed the newsletter? 🤗
Why not share with your family or friends who may be interested in starting their investing journey. Simply forward this newsletter - all they got to do is click the “Subscribe Now” button below… Or they can get the Gotrade app - they’ll automatically become a subscriber.
The legal stuff 🤓
Disclaimer: TR8 Securities Inc., trading as Gotrade, provides this service as general information only, without taking into account your circumstances, needs, or objectives. You should consider the appropriateness of any forecast or other information herein for your individual situation. If in doubt, you should seek independent professional advice.
Gotrade utilizes financial information providers and information from such providers may form the basis for analysis. Gotrade accepts no responsibility for the accuracy or completeness of any information herein contained. Additionally, any third-party information provided therein does not reflect the views of Gotrade or any of their subsidiaries or affiliates. Opinions are the authors; not necessarily that of TR8 Securities or any of its affiliates, subsidiaries, officers, or directors.
All investments involve risk and past performance does not guarantee future results or returns. There is always the potential of losing money when you invest in securities or other financial products. TR8 Securities Inc. is licensed to carry on business as a Labuan Securities Licensee under the Labuan Financial Services and Securities Act 2010 (License No. SL/20/0014).