Tag Archives: amzn

PayPal Leads In Converting Buyers Online: ComScore Study

PayPal ( PYPL ) and its One Touch authentication technology lead all of its competitors in converting buyers online, according to a press release  Tuesday from the company, referring to a study by market tracker ComScore. According to the ComScore study, shoppers that pick PayPal converted 87.5% of the time. The runner-up to PayPal was Visa ( V ), which had a conversion rate of 51.1%. ComScore lumped other competitors such as Amazon.com ( AMZN ) and MasterCard ( MA )  into a single group that converted at 45.6%. In the study , conversion rate measures the percentage of shoppers at the checkout page that select a payment method and complete the purchase. The data are based on a behaviorally-tracked panel and measures panelist purchases on 15 retail domains in the U.S. The perceived friction of inputting all the necessary information — name, address, credit card number, for example — at checkout has been seen as a big issue for digital payments services, but the study results suggest PayPal has gone a long way toward solving this issue. IBD Take: PayPal is a Leaderboard stock and ranks high in almost all major metrics. PayPal rolled out its One Touch technology about a year ago. “The results are really showing the success with the One Touch product,” PayPal global head of product communications, Anuj Nayar, told IBD Tuesday. In its press release, PayPal touted the 21 million consumers who have opted-in to use One Touch . Visa did not immediately return an emailed request for comment. PayPal stock was down more than 1%, near 39, in midday trading on the stock market today . The stock is finding support at its 50-day moving average. Volume has been lackluster as shares bounce back, but not much different from when shares were falling. The stock is mildly below a buy point at 40.03 but also in buy range from a lower 38.62 entry. The San Jose-based company has an IBD Composite Rating of 94, where 99 is the highest. Photo above provided by Shutterstock . PayPal provided the below infographic with its release. PayPal Infographic

Cable Firms Prepare To Fight Set-Top Rules That Help Google, Apple

Cable TV companies are readying a court challenge if the Federal Communications Commission approves new set-top box regulations that would let companies like Apple ( AAPL ), Alphabet ( GOOGL ), Amazon.com ( AMZN ) and others sell devices that provide access to cable programming. The National Cable & Telecommunications Association has hired Theodore Olson, an attorney at the noted law firm Gibson, Dunn & Crutcher, to battle the FCC’s set-top box proposal. Olson, a former solicitor general, represented George W. Bush in the contested 2000 election vs. Al Gore that ultimately was decided by the U.S. Supreme Court. Apple also recently hired Olson and Gibson, Dunn & Crutcher in its battle vs. the Federal Bureau of Investigation involving a court order to unlock an iPhone used by an assailant in the San Bernardino terror attack. President Obama last week stated his support for opening up the set-top box market for more competition. The proposal would require pay-TV and technology companies to jointly develop new standards for devices providing access to cable TV networks. The cable TV industry pays programmers billions of dollars for content rights, and it’s unclear how that business model would be impacted. Comcast ( CMCSA ) and phone company AT&T ( T ), also a pay-TV provider, have criticized the set-top box initiative. The FCC, with three Democratic members and two Republicans, is expected to vote on the plan after a public comment period closes. FCC Chairman Tom Wheeler says the plan will make it easier for consumers to switch from pay-TV companies’ set-top boxes leased monthly to new devices sold on a retail basis by consumer electronics or Internet companies. Gibson, Dunn ‘Most Certainly Preparing For Litigation’ “We are most certainly preparing for litigation in the event the FCC moves forward with its invasive and illegal plan to restructure the video programming market,” said a spokesperson for Gibson, Dunn & Crutcher. Brian Dietz, a NCTA spokesman said, “We are exploring all options.” The NCTA previously hired Gibson, Dunn & Crutcher to challenge the FCC’s Title II-based net neutrality rules that were enforced in mid-2015. The U.S. Court of Appeals for the District of Columbia Circuit is expected to rule soon on the net neutrality case. Pay-TV companies may have an uphill legal battle vs. the FCC’s set-top box rules, says Paul Gallant, an analyst at Guggenheim Partners. “Cable/telcos will almost certainly challenge any FCC final new set-top rules in court,” Gallant said in a February research report. “They will likely argue, among other things, that the FCC lacks authority to give app makers access to programming/guide information. “It’s far too early to predict the court outcome, but it’s important to note that the FCC is operating under a clear congressional mandate to make the set-top business competitive. That doesn’t necessarily mean the FCC will prevail, but the agency probably will feel good about its chances with that statutory starting point.” Under the proposed new set-top rules, the FCC says that only pay-TV subscribers will gain access to programming, and that copyright protections will be preserved. Google, critics say, aims to swap its own advertising for the local ads sold by cable TV companies.

Netflix Stock Dives On Weak Subscriber Guidance For Q2

Netflix ( NFLX ) late Monday beat forecasts for first-quarter earnings and subscriber growth, but disappointed with weak subscriber guidance for the current quarter. Netflix stock fell 10% in after-hours trading following the earnings news release. During the regular session Monday, Netflix fell 2.8% to 108.40. The Internet TV service gained 6.74 million total streaming subscribers worldwide in Q1, including 2.23 million in the U.S. and 4.51 million in international markets. In January, Netflix said it expected to add 1.75 million U.S. streaming subscribers and 4.35 million international subscribers for a total of 6.1 million additional subscribers in the first quarter. It expected to end Q1 with 80.86 million total streaming subscribers, but its actual total was 81.5 million. For the current quarter, Netflix said it expects to add just 500,000 U.S. subscribers and 2 million international subscribers. That would be the smallest customer growth in two years. The Los Gatos, Calif.-based company faces subscriber churn in the U.S. as a result of longtime customers seeing a $2 increase to their monthly fee to $9.99 a month. In the first quarter, Netflix earned 6 cents a share on sales of $1.958 billion. Analysts polled by Thomson Reuters expected Netflix to earn 3 cents a share on sales of $1.965 billion in the first quarter. For the second quarter, Netflix is targeting earnings per share of 2 cents. It did not give a revenue estimate. Wall Street had been modeling for Netflix to earn 5 cents a share, down 17% year over year, on sales of $2.117 billion, up 29%, in Q2. In the Internet TV sector, Netflix competes with Amazon.com ( AMZN ), Hulu, Time Warner ‘s ( TWX ) HBO and others. On Sunday, Amazon ramped up the competition with Netflix by announcing a stand-alone subscription video service at a lower price. Amazon is now offering its Amazon Prime Video for $8.99 a month, a dollar less than Netflix’s standard streaming plan. Amazon Prime Video was previously available only as part of the online retailer’s $99-a-year Prime service, which offers free two-day shipping on millions of items. Amazon stock closed up 1.5%.