JP Bennett (Motley Fool, VRSN, PYPL)
Jan 10, 2017|
JP Bennett (Motley Fool, VRSN, PYPL) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Let's go to stock talk JP Bennett from the Motley Fool is here. JP that are joining us it's good. We're delighted it's good to have you here and we've got a couple stocks. In the payment processing sector had let's start first with PayPal. Which is one that I think a lot of people are familiar with PayPal has grown over the last you know two decades now. Into accompanied it's worth almost fifty billion dollars. Where do you see this company go where they trying to put a lot of there. That their research don't forward. Mike underpaid. We know that industry in particular I went and that the really eager. They can really lead to sustain our performance and PayPal. One of the best talent out there currently in the low and that it conversion rob passed me the ID to digital payment. A worldwide is up around eight are now in. Being completed in cash and so I picked out yet. Doing everything that they can do I get people at least looked over to using electronic payment. And they basically just writing that hail and overt aren't there. Putting a lot of investment in chew. You know peer to peer lending and things like that it appear in it. And you're ready just being unable to continue to grow and it really quick aid over the years. Now what are the things that I know they're trying to make inroads into as well is mobile payments which I know in some parts the world. It that's almost bypassed it's almost like people gone from having no bank account no cash and all raid into that mobile payment world what are they doing and on that front. Yet the great point years being in a lot of emerging market people are there at the main thing we're mobile bunker at eight get. What we did here in the US going from computers to mobile on they went straight into mobile phone that. You know mobile payment was up at the knicks are back at quarter and are doing over. 26 billion they're doing I think like band though I think like that ain't getting it and which how people are making Burnett turned out there like at that your year based. Transaction working with smaller companies. That want to do more production out of mobile platform and I don't really have the capability or the ability to work with. Bigger payment there than about actually a really big revenue growth driver pretty and currently and it got to keep being that way going forward. Let's turn over now to talk about Verisign is a company that most people probably transacted on their systems at some point. But might not know it can get a little background about what they do. Yet very excited a pretty amazing business like it that a one that most people don't really I know anything about that they're basically working behind the scene. To ensure that the Internet where I and I am pretty vague but basically what they'd do it they act as. Exclude the registry or alt dot com and dot net domain name an exit that they're bank apple dot com Nike dot com right. And we're doing that they get a law he let an aide Mark Kirk domain name but when you have over a 142 million domain name. Are currently out there that really add the outbreak and that businesses so great because. There really isn't all that much capital and pictures that they need to make. To maintain the current business order growth going forward diligent generate a how to catch able convert over it in secret of their revenue and if we cash well and are under forty I'd of their net ink. And because they don't really need to spend any of that on acquisitions. For our growth project. They can basically get to repurchase shares and over there. Then he and that when he well there is an end when he panic is made but never shared expanding at a lot from a 160000205. Major competitor to. The great thing is that when it comes in dot com and dot they act as the exclusive registry that they have an agreement with. The industry regulators and the DOE to ET OP Kirk. But after the registry or dot com and dot net though the competition com in the form. Are their top level domain and the ones aren't that popular that you'll want that you're seeing. Crop up like. Dot by it or something like cotton tree and gotten under right so. Note though they're really the only competitors and when become the domain name dot com is by far no way to know command. Well over a third of the marketplace is dot needs a real domain name now. It is a real of the domain and it actually. Command a pretty high right if you want about it there Owens arguably gotten and. That's we have an applicant that Tucker JP thank you very much we appreciate the time all right. JP Bennett from the Motley Fool the stickers on those two companies Verisign has the ticker BR and and that's not Verizon it's Verisign VR. S and PayPal with a ticker PYPL.