Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Facebook, PayPal, MasterCard, Uber and Spotify

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 19, 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 (FB - Free Report) , PayPal (PYPL - Free Report) , MasterCard (MA - Free Report) , Uber (UBER - Free Report) and Spotify (SPOT - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Facebook's Revolutionary Cryptocurrency

The most visited social media website on earth just revealed its plan to launch its own blockchain-based cryptocurrency. The currency will be called Libra and will be managed by the new Facebook subsidiary, Calibra. Calibra's digital wallet containing Libra is expected to be launched in Messenger, WhatsApp and as a standalone app in the first half of 2020. Cryptocurrencies across the board have been rallying hard in 2019, with Bitcoin gaining over 150% since the first of the year. Rumors of this colossal crypto's launch have been circulating for months and now finally coming to fruition, fanning the crypto flame once again. 

The critical difference between Libra and other cryptocurrencies like Bitcoin, Ethereum, and comparables is that Libra will be backed by a spectrum of international currencies and other investments. An asset-backed digital currency is a key component that I believe will turn crypto skeptics into believers. Being asset-backed will also give this currency stability and a level of security that no other crypto has been able to match.

Facebook is partnering with some heavy-hitters in the financial sector including PayPal and MasterCar as well as tech titans Uber and Spotify. This consortium of partners will help add to the legitimacy of the currency as well as its reach.

Facebook currently has 2.375 billion monthly active users (MAU) or 57.5% of the world's humans with internet access, which is a continuously growing figure. This extensive reach will give Libra proper exposure to achieve global traction.

In a press release this morning, Facebook focused on how this new currency will benefit developing countries, quoting that "approximately 70% of small businesses in developing countries lack access to credit and $25 billion is lost by migrants every year through remittance fees." They are anticipating that Libra will help to mitigate these issues.

Take Away

This new type of asset-back digital currency is going to change the way that investors and regulators view cryptocurrencies. Partnering with widely trusted financial service firms, PayPal and MasterCard adds to the perceived legitimacy of Libra.

The crypto-craze that we saw peak at the end of 2017 might have just been the tip of the iceberg. Cryptocurrencies are making new 52-week highs but is Libra good or bad for the broader crypto market. In my eyes, Libra is bad news for the rest of digital currencies because at the end of the day only the most usable currencies will make it out alive.

Libra will allow anyone with a cheap smartphone to have access to banking and the ability to use their funds with no more than a touch to their screen. The extensive international exposure, ostensible ease of use, and stability is expected to propel Libra's usage beyond any crypto before it. This could be a huge step into the next generation of banking and digital finances.

FB is up over 44% year-to-date despite regulatory issues involving privacy and the anti-trust probe that has been combing the tech space. Calibra is going to be set up as a nonprofit organization and it is still unclear how Facebook is planning on monetizing Libra, though I am sure it will involve transaction fees. Look for further updates on how this new currency is expected to affect FB's financials.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They're also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%+119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Media Contact                                               

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                       

http://www.zacks.com                                                   

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.