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The Zacks Analyst Blog Highlights: Facebook, Dropbox, Yirendai, ANGI Homeservices and Etsy
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For Immediate Release
Chicago, IL – July 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Facebook , Dropbox (DBX - Free Report) , Yirendai (YRD - Free Report) , ANGI Homeservices (ANGI - Free Report) and Etsy (ETSY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
How Will the Proposed “Crypto Bill” Impact Facebook?
Based on the limited information currently available from media reports, the new bill proposing to block big tech from finance, may not have the desired impact on Facebook.
According to reports, the Democratic majority that leads the House Financial Services Committee, has proposed, in the "Keep Big Tech Out Of Finance Act," that "A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System."
The draft explicitly bans “large platform utilities from being a financial institution or being affiliated with a person that is a financial institution.”
Moreover, this large platform has been defined as a company whose main business is the operation of an online platform service with at least $25 billion in annual revenue. There’s also a proposed million-dollar daily fine for contravention.
So it does appear that the act is intended to stop the launch of or Facebook’s direct involvement in Libra immediately and deter big tech from getting into this line of business going forward.
The House Financial Services staff are expecting some opposition in the house, where it hasn’t officially been presented yet. But it has become a necessary topic for discussion and for deciding a regulatory framework on, given that Libra is slated to launch in 2020.
Impact on Facebook
Even if Facebook extricates itself from its “affiliation” to Libra, nothing can be done about the fact that the currency was developed with Facebook’s platform in mind. So it will work very well on Facebook. Since a new currency, especially of the crypto variety, needs largescale adoption to be successful, whatever the group responsible for the establishment, maintenance, or operation of the currency, will consider it prudent to leverage Facebook’s platform. So in the absence of a personal grudge, they might very well cut a deal with Facebook.
Facebook already has a plan of getting 100 interested industry players on board, including banks. Government regulation and oversight might actually facilitate the process.
Adoption beyond Facebook was a later goal and if Facebook gives up its affiliation, it may not benefit from this.
Recommendations
Facebook shares carry a Zacks Rank #3 (Hold). Worth considering instead for exposure to the space are buy-ranked stocks like Dropbox, Yirendai, ANGI Homeservices and Etsy. Or, you could also take a look at the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Facebook, Dropbox, Yirendai, ANGI Homeservices and Etsy
For Immediate Release
Chicago, IL – July 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Facebook , Dropbox (DBX - Free Report) , Yirendai (YRD - Free Report) , ANGI Homeservices (ANGI - Free Report) and Etsy (ETSY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
How Will the Proposed “Crypto Bill” Impact Facebook?
Based on the limited information currently available from media reports, the new bill proposing to block big tech from finance, may not have the desired impact on Facebook.
According to reports, the Democratic majority that leads the House Financial Services Committee, has proposed, in the "Keep Big Tech Out Of Finance Act," that "A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System."
The draft explicitly bans “large platform utilities from being a financial institution or being affiliated with a person that is a financial institution.”
Moreover, this large platform has been defined as a company whose main business is the operation of an online platform service with at least $25 billion in annual revenue. There’s also a proposed million-dollar daily fine for contravention.
So it does appear that the act is intended to stop the launch of or Facebook’s direct involvement in Libra immediately and deter big tech from getting into this line of business going forward.
The House Financial Services staff are expecting some opposition in the house, where it hasn’t officially been presented yet. But it has become a necessary topic for discussion and for deciding a regulatory framework on, given that Libra is slated to launch in 2020.
Impact on Facebook
Even if Facebook extricates itself from its “affiliation” to Libra, nothing can be done about the fact that the currency was developed with Facebook’s platform in mind. So it will work very well on Facebook. Since a new currency, especially of the crypto variety, needs largescale adoption to be successful, whatever the group responsible for the establishment, maintenance, or operation of the currency, will consider it prudent to leverage Facebook’s platform. So in the absence of a personal grudge, they might very well cut a deal with Facebook.
Facebook already has a plan of getting 100 interested industry players on board, including banks. Government regulation and oversight might actually facilitate the process.
Adoption beyond Facebook was a later goal and if Facebook gives up its affiliation, it may not benefit from this.
Recommendations
Facebook shares carry a Zacks Rank #3 (Hold). Worth considering instead for exposure to the space are buy-ranked stocks like Dropbox, Yirendai, ANGI Homeservices and Etsy. Or, you could also take a look at the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.