In response to the student-loan debt crisis in American:
“The federal government needs to get out of the student loan market. Talk about deficit.
“I just paid the last $1683.50 on a loan for my daughter. She graduated 7-years ago. Now I can invest like I want.
“Follow the money.
“Any public college or university in this country, also (especially) private schools, are just as greedy for students and money.
“I don’t think there’s a solution…money makes the world go round.”
Another reader writes from Australia:
“As a comparison, have you analysed the impact on the Australian economy of our student loan system?
“It is unusual: We all have income-contingent loans to the government (non-time based) payable through taxation.
“What would be the impact on the Australian government and economy if unemployment rises and we stop paying for our educations?
“Already underemployment here is estimated at a shocking 32%.”
We’re not familiar with Australia’s student-loan system. We’ll follow up tomorrow.
We appreciate your feedback.
Your Rundown for Monday, October 22, 2018…
PayPal’s 54% More
PayPal had a sweet earnings beat.
The company released its earnings report Thursday. PayPal posted revenue of $3.68 billion, up 14% for the third quarter and 26% for the year, soundly beating expectations.
PayPal’s on a steady track, too, acquiring more account holders every quarter since early 2017.
That’s an 11% increase in new account holders in Q3 2018 alone. Compare that with Facebook’s slide in new account holders this year.
PayPal’s also making news for acquisitions of a different sort, proving the company’s putting revenue to good use.
In 2013, PayPal acquired the person-to-person payment app Venmo; since then, PayPal’s struggled to monetize the app. That’s starting to change.
Now almost a quarter of payments made via Venmo are generating revenue. That’s up from 17% last quarter.
“While it is still early, our monetization efforts appear to be reaching a tipping point,” PayPal’s CEO Dan Schulman says, “I’m especially pleased with the strong overall momentum surrounding Venmo.”
This morning a startup called Tala announced PayPal’s invested an undisclosed sum in the company that provides loans to underserved populations, underwriting small loans via an android app.
Which goes along with something Schulman said last week: “We will continue to leverage acquisitions to strengthen our two-sided platform and maintain our position as the leading global open platform for digital payments.”
The PayPal name carries weight, too. An IPSOS study released last Tuesday finds consumers are “54% more willing to buy when a merchant accepts PayPal.”
All told, PayPal’s got a lot more room to grow. Shares are up 8% since Thursday.
Market Rundown for Mon. October 22, 2018
S&P 500 futures are slightly down to 2,767.95.
Oil’s also nominally down to $68.80.
Gold is down $4.00 to 1,224.70.
Bitcoin is down $31 to $6,478.34.
Have a good day. We’ll talk tomorrow.
For the Rundown,