Three Things to know (Oct. 22nd)
Oct 22, 2020
1. PayPal will allow cryptocurrency buying, selling and shopping on its network. Another step toward mainstream crypto adoption?
PayPal (a Titan Flagship holding) is now joining the crypto market, allowing customers to buy, sell and hold bitcoin and other virtual coins using its online wallets. “PayPal customers will also be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021.” The hope is that the service will encourage global use of virtual coins and prepare its network for new digital currencies that may be developed by central banks and corporations. While other fintech companies like Square and Robinhood already allow users to buy and sell crypto, we think PayPal’s launch is most noteworthy given its vast reach: ~350 million active accounts worldwide.
2. Chipotle booked record Q3 sales from online orders, but robust delivery growth weighed on profits. “Toll roads” like Uber Eats are the culprits.
Chipotle reported its largest-ever quarterly sales as online orders surged, helping offset lost restaurant traffic during the coronavirus pandemic, but delivery expenses are eating into its margins. Delivery companies like DoorDash and Uber Eats often charge double-digit commissions on food sales to handle those orders, and the revenue Chipotle charged to customers didn’t fully cover those fees. Chipotle is now testing 7-17% price increases and hasn’t seen any big changes in demand yet. Is its guac good enough to warrant higher food tolls on top of the already rising delivery tolls?
3. Speaking of toll roads: Michael Bloomberg reportedly held talks with hedge fund mogul Bill Ackman to sell a minority stake in Bloomberg LP.
Bloomberg reportedly recently received an offer from Bill Ackman's blank-check company Pershing Square Tontine Holdings to take Bloomberg LP on to the NYSE. An investment banker familiar with the talks said that the most Michael Bloomberg would give up is 20% (enough to float without giving up too much control). Based on its current valuation, a 20% stake would be valued at around $12B. We think this business spits off billions in free cash flow led by its popular Bloomberg Terminal, a computer workstation with a near-monopoly in the finance industry. Despite its $20K+ annual price tag, its core product is a toll road many feel to need to pay to succeed in the financial markets.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.