Part of that growth was a product of the company’s One Touch mobile solution and Venmo, which is a way of sharing payments and sending money to friends. Apparently, amongst millennials, Venmo facilitates cool exchanges that somehow enhance the payment experience. I actually have a Venmo account that a friend tried to set up for me - needless to say I have never used it as I simply am not cool enough to have fun paying for something. If I knew how, I would probably close the thing - but far be it for me to gainsay what is working.
That is hilarious and my exact experience with Venmo. A friend made me DL it so she could send me $50 for a concert ticket. Later I sent $15 of it back to chip in for pizza or something. Ha…the $35 balance will sit there forever (or until I chip in for pizza again) because I’m too lazy to figure out how to actually link it to my bank.
I think that the above valuations reflect tensions between those who think management will be able to accomplish its goals and those who think that competition, in particular, will bring down growth and margins.
I like these concluding remarks and would probably just be on the other side of this issue, particularly with margins. They may grow just fine, but I don’t think they’ll ever be able to have better margins than they do now…and my guess would be they’ll come down some. Even if they can maintain their preeminence in the market, it’s just not a terribly profitable space. The net income in the 10-15% range they’ve enjoyed the last couple years is phenomenal for them. It would be incredible to even maintain that level.
Bear