Speaker 1: Global business news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Radio plus Mobile Act and on your radio.
Speaker 1: This is a Bloomberg Business flag from Bloomberg World Handquarters.
Speaker 1: I'm Charlie Pellette. A lot of breaking news after the
Speaker 1: ballot's run down the headlines, j C. Penny says Mike
Speaker 1: Allman will retire. J C. Penny naming CEO Marvin Ellison
Speaker 1: as chairman. Roger Rails, who has resigned as head of
Speaker 1: the Fox News Channel, felled by sexual harassment accusations leveled
Speaker 1: by a former anchor. He will be succeeded by twenty
Speaker 1: first century Fox founder and chairman Rupert Murdoch. Chippotle reporting
Speaker 1: second quarter earnings per share eighty seven cents estimates there
Speaker 1: ninety one cents. Visa posting fiscal third quarter profit. The
Speaker 1: Beat analysts estimates Starbucks third quarter adjusted EPs forty nine cents.
Speaker 1: Estimates there were for forty nine cents. Stocks lower the
Speaker 1: DAL the SMP nestak all declining today, SMP down seven
Speaker 1: sixty five, a drop of four tenths of one percent.
Speaker 1: Gold up twelve ninety anounced thirty two a gain of
Speaker 1: one I'm Charlie Pollock. That's a Bloomberg business flash. You're
Speaker 1: listening to taking stock with pin Box and Kathleen Hayes
Speaker 1: on Bloomberg Radio. Shares of PayPal are higher right now
Speaker 1: by more than two and a quarter percent and after
Speaker 1: hours trading after the company reports a second quarter results,
Speaker 1: earnings per share a thirty six cents at matches the
Speaker 1: average analyst estimate of thirty six cents, but the company
Speaker 1: demonstrates that sales are growing. Sales for the quarter two
Speaker 1: point six five billion, much better than the two point
Speaker 1: six billion expected by analysts, and also taking a look
Speaker 1: at the third quarter, PayPal says that they will earn
Speaker 1: between thirty three and thirty five cents to share. Previous
Speaker 1: estimate was for thirty five cents. The company also saying
Speaker 1: that sales for the year will increase. Let's find out
Speaker 1: more from Spencer Soper. He is our technology and e
Speaker 1: commerce reporter from Bloomberg News, joining us from our Seattle
Speaker 1: bureau and you can follow Spencer on Twitter at Spencer
Speaker 1: Soaper s o p e Er. Spencer tell us about
Speaker 1: the results from PayPal holdings. Yeah, thanks, uh, and you
Speaker 1: gave a good rundown. You look like a good second
Speaker 1: quarter and they beat on on their forecast as well.
Speaker 1: One thing, um, the one other thing going on is
Speaker 1: that they simultaneously announced the deal with Visa, uh, you
Speaker 1: know largest credit cards who were regarding fees and uh
Speaker 1: and in how they um have their customers link PayPal
Speaker 1: accounts to either bank accounts or credit cards and on
Speaker 1: data sharing and that was a big deal as well.
Speaker 1: And so uh it could be the stock reacting to
Speaker 1: that deal with with with Visa as well. Well, you've
Speaker 1: written a spencer that PayPal is going to stop discouraging
Speaker 1: customers from linking accounts to Visa cards and then to
Speaker 1: share more data with the card networking ext change for
Speaker 1: what they describe as long term visa fee certainty. That
Speaker 1: means they're going to just make money. Yeah, well it's it.
Speaker 1: It ends some uncertainty. There's been these sticking points between
Speaker 1: these two players. Especially more and more transactions you know,
Speaker 1: go digital and PayPal put continues to grow. It's a
Speaker 1: bigger thorn on the side of visas another announces agreement.
Speaker 1: And the one key sticking point is what's what's called
Speaker 1: a c H steering. If you make a payment on
Speaker 1: PayPal that's linked to your bank account, that is a
Speaker 1: less expensive transaction for PayPal than if you make a
Speaker 1: transaction on PayPal that's linked to your Visa card. So
Speaker 1: PayPal has had this incentive to steer customers towards bank
Speaker 1: accounts as opposed to credit cards or debit cards. And
Speaker 1: uh and Visa wanted to put an end to that.
Speaker 1: And the main trigger that Visa had that it could
Speaker 1: have pulled and didn't could have been imposing a higher
Speaker 1: fee on PayPal transactions. Um. And so this kind of
Speaker 1: removes that threat for PayPal, which uh there have been
Speaker 1: some tough talk Visa CEO about that uh uh you know,
Speaker 1: potential potential threat. And I think investors were uh happy
Speaker 1: just to see this see this issue resolved. Now. Well,
Speaker 1: the shares of pay Pal, as I said, they're up
Speaker 1: about two and a half percent and after hours trading,
Speaker 1: all right, So this kind of buries the hatchet between
Speaker 1: PayPal holdings and a Visa Visa coming out, I mean,
Speaker 1: rather PayPal coming out and reporting sales that were better
Speaker 1: than analysts estimated. Is that going to be a trend
Speaker 1: because taking a look at the rest of the year,
Speaker 1: the company seems to also be saying that they expect
Speaker 1: sales to be pretty good. Yeah, they're, they're um, uh,
Speaker 1: they've updated their app. They're seeing more more traction from that,
Speaker 1: a big emphasis on mobile, uh emphasis on venmo is
Speaker 1: their peer to peer platform which you know, I can
Speaker 1: give you twenty dollars to share a restaurant bill, uh
Speaker 1: without for free, without any fees. But they're they're making
Speaker 1: a progress of monetizing that, trying to make that a
Speaker 1: payment for merchants as well, where we're where PayPal is
Speaker 1: actually making some money off of that. So they have
Speaker 1: uh in their in their brain Tree platform which powers
Speaker 1: all kinds of things including uber um. You know, you're
Speaker 1: seeing strong growth. So yes, they they're, they're they're well
Speaker 1: positioned in the in the digital payment spaces. More and
Speaker 1: more transactions are made digitally. Well, maybe that's why they're
Speaker 1: saying that the third quarter revenue number is going to
Speaker 1: be between two point six two billion and two point
Speaker 1: six seven billion. They previously the estimate was for two
Speaker 1: six one. So they're increasing their guidance for third quarter sales. Yeah. Yeah,
Speaker 1: so they're seeing, uh seeing something something Rosie Rosie there
Speaker 1: all right. Sale shares are up now three percent in
Speaker 1: the after hours trade. Tell me about eBay. We noted
Speaker 1: that eBay stock has moved higher today by more than
Speaker 1: ten and a half percent of two dollars and nine
Speaker 1: for eBay. They surprised investors yesterday after the close. Yeah,
Speaker 1: eBay had a big a big quarter and a big beat.
Speaker 1: But the main thing beyond the numbers is that they've
Speaker 1: been talking for several quarters now about these back end
Speaker 1: initiatives they've been taking on to take better advantage of
Speaker 1: their data to drive more sales um and, and they've
Speaker 1: they've cautioned investors it's going to be a year's long project,
Speaker 1: and they're they're finally starting to see, um see some
Speaker 1: results of that in terms of of growth. Uh. And,
Speaker 1: and that's been the main main thing is can what
Speaker 1: can eBay do to to return to growth? Still growing
Speaker 1: slower than the e commerce overall, but investors, why, we're
Speaker 1: encouraged by what they what they saw after you know,
Speaker 1: several quarters of promises and assurances. Yeah, they said that
Speaker 1: full year revenue would be almost nine billion dollars. That's
Speaker 1: well a second quarter revenue was up more than six percent. Yeah,
Speaker 1: and uh, eBay CEO Devin when they remarked on the
Speaker 1: call that that they were seeing results sooner than they
Speaker 1: than they expected. Um, so I was encouraging, uh encouraging
Speaker 1: quarter for m and investors like what they saw. Well.
Speaker 1: Certainly eBay shares, as I said, up nearly eleven percent
Speaker 1: today the stock of eBay, but for the year up
Speaker 1: only nine percent. So this rebound is certainly helping investors,
Speaker 1: but only in the last several weeks. Thanks very much
Speaker 1: for spending time with the Spencer Soaper is our a
Speaker 1: tech and e commerce reporter for a Bloomberg News joining
Speaker 1: us from our Seattle bureau. He can be followed on
Speaker 1: Twitter at Spencer Soaper. That's s O p e Er.
Speaker 1: This is taking stock. I'm pim Fox. Thanks thanks to
Speaker 1: Reggie Basil, our engineer, our producer, Sam Lenga, and this
Speaker 1: is Bloomberg. Coming up on Bloomberg Law, a discussion about
Speaker 1: a lawsuit against the Motion Picture Association for giving ratings
Speaker 1: of g PG and PG thirteen, two movies that have
Speaker 1: smoking in them. That's next