Seeking Alpha

Twitter reportedly partnering with PayPal rival; Stifel starts coverage

  • A source tells re/code Twitter (TWTR) is close to a deal with online payments upstart and PayPal (EBAY) rival Stripe to allow it to handle credit card payments from its ~250M monthly users.
  • The deal could allow Twitter, which entirely relies on ads and (to a lesser extent) data licensing to monetize its platform, to open up a new revenue stream. With many top brands and retailers already advertising on Twitter, there are also opportunities to link marketing campaigns with e-commerce. Chinese microblogging leader Sina already supports online payments.
  • TechCrunch reports Twitter also considered using PayPal before deciding on Stripe, and is looking to build an e-commerce marketplace similar to the one offered by fellow Jack Dorsey company Square.
  • Though still the 800-lb. gorilla of online payments, PayPal is facing stiffening competition from Stripe, Amazon (previous), and others when competing for the business of e-commerce sites not named eBay.
  • PayPal acquired rival Braintree for $800M last September, and more recently addressed an age-old customer complaint by updating its checkout process to fully integrate with merchant sites.
  • Meanwhile, Stifel has started coverage on Twitter with a Buy and $75 PT. Shares are up 1.5% AH.
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Comments (4)
  • SharkDude
    , contributor
    Comments (640) | Send Message
     
    And of course the analyst dismissed current metrics and bases price target future potential. Or did they just want the highest PT on the street to please the company? To get banking business?
    16 Jan, 07:08 PM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    It's a good thing the upcoming share dilutions are utterly meaningless. Floated shares increasing 8x has absolutely no effect on price because supply/demand has no basis in the stock market.
    17 Jan, 09:07 AM Reply Like
  • ljconcepts
    , contributor
    Comments (4) | Send Message
     
    All these unlocks really hurt Facebook' price, didn't they? No!!
    17 Jan, 09:39 AM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    But Facebook's total dilution was only 3x current float (after all lockup periods) and FB was making money. Twitter's dilution is more than double that and it has yet to make money and isn't expected to this year.
    17 Jan, 10:03 AM Reply Like
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