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JP Morgan changed his mind and went from criticizing Bitcoin to integrating it into his investment options

Although the CEO of financial firm JP Morgan was one of the main detractors of Bitcoin and cryptocurrencies, he has already given in to their charm and now they will offer BTC funds to their clients.

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August
6, 2021

3 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Criptomonedas the boom in the last year and a half has generated endless controversy between supporters and detractors. While financier JP Morgan Chase launched some of the harshest criticism against Bitcoin , it has now changed its mind and, through its private banking unit, will offer its high-profile clients to invest in BTC funds . On July 19, after years of attacking Bitcoin , JP Morgan became the first major US bank to offer investments in Bitcoin and other cryptocurrencies to all its clients, CriptoNoticias reported. The new Bitcoin fund , however, is limited to clients of JPMorgan Private Bank . Sources close to the financial company, cited by CoinDesk , revealed that the Bitcoin fund will be presented to clients as the “safest and cheapest” investment vehicle in BTC, among those available in private markets. They also leaked that it is passively managed and has no client investments yet, which could change soon because advisers were briefed on the fund just yesterday in a call with the bank. To manage the Bitcoin fund , JP Morgan partnered with New York Digital Investment Group (NYDIG) , an institutional platform focused on custody and other Bitcoin services. Last February, NYDIG jointly filed with Morgan Stanley an application for a Bitcoin ETF with the United States Securities and Exchange Commission (SEC). Our partnerships with financial institutions and payment providers are just the beginning as we continue working to further financialize #Bitcoin . @BitcoinMagazine covers our vision for integrating Bitcoin into the banking system: https://t.co/WEr1tAOmjW – NYDIG (@NYDIG_BTC)August 3, 2021 It should be remembered that Jamie Dimon , CEO of JP Morgan Chase , has been an outspoken opponent of Bitcoin . In 2017 he called the cryptocurrency “a fraud” and even threatened to fire any JP Morgan employee who exchanged Bitcoins, according to Bloomberg . However, Dimon has given in to the allure of cryptocurrency and has recently said that clients want to invest in Bitcoin and JPMorgan has a responsibility to facilitate crypto investments safely. “I’m not a Bitcoin supporter, I don’t really care about Bitcoin ,” Dimon told the Wall Street Journal in May. “On the other hand, customers are interested and I don’t tell them what to do .” Thus, JP Morgan Chase follows in the footsteps of other financial institutions such as Goldman Sachs and Morgan Stanley , which also joined the Bitcoin fever and already offer different cryptocurrency investment schemes to their clients.

What are student credit cards and how do they work?

August
6, 2021

6 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Opinions expressed by Entrepreneur contributors are their own.

Credit cards are financial tools that work as both a payment method and a financial instrument . In the first case, they offer a revolving credit line; that is, an amount of money that is renewed as payments are made and that can be used to buy a product or service; while in the second scenario, the plastic helps to generate credit history. According to data from the financial coach Coru, 59.4% of Mexicans do not have a credit card, so developing a good credit history from a young age is important to be able to access better financial opportunities in the future. Banking institutions offer some products that encourage the financial inclusion of young people; among these options are student credit cards. This type of plastics are designed for the needs of people who are studying or who have just got their first job and, therefore, their first income. “Student credit cards are a tool that can integrate young people into the financial world. Likewise, it can help them to generate credit history, teach them how to operate a revolving loan and become familiar with concepts such as commissions and interest ”, says Fernado González, CEO of Coru. How does a student credit card work? As these types of cards are focused on a college student profile, their credit limit is not that high. However, it is common to see that banks have an agreement with universities to offer these services. The requirements to remove the plastic vary from one institution to another, but generally a valid official identification, proof of address, some document that guarantees your status as an active student and minimum income is requested, between 1,500 and 6,000 pesos per month , according to the bank. These credit cards can have fees for plastic replacement, late payment, cash disposition, and annuity. Although its limit is not that wide, it can help you pay for school supplies, meals and entertainment outings, as well as build credit history. According to figures from Coru, 30% of credit card users within the 18 and 24 age group withdraw cash from these types of products, while almost 30% pay their credit card in full. Only about 20% of young cardholders have had to pay interest at least once. “Through this tool, a young person can start his financial life and begin to build his credit history. Having a good track record can facilitate the approval of a loan in the future ”, indicates the CEO of Coru. What banks offer this service? Santander – Zero credit card. This card is designed for college students. It does not charge an annuity as long as the user spends at least 100 pesos a month. To apply you need to be between 18 and 25 years old, present a copy of your current university credential, maintain a minimum balance of 1,500 in the last month, verify minimum income of 2,750 pesos per month, present payroll receipts from the last two months, present a copy of your official identification and proof of address, in case your new address does not match your identification. If you are a foreigner, you must present a valid passport and an FM2 immigration document. This card has 77.6% average CAT without VAT, 58.86% average interest rate weighted by balance and annual commission at no cost. BBVA – My first Bancomer card . This is the option that BBVA offers to university students who want to access a credit card. To apply you need to be over 18 years old, reside in Mexico and have a minimum monthly income of 6 thousand pesos. This is the documentation that you must present at the branch: valid official identification (INE or passport), proof of address dated no more than 3 months ago (electricity, telephone or water bill) and proof of income. If you are a foreigner you have to present a copy of your immigration form. With this card you can receive an alert or SMS message with your movements, carry out operations with the BBVA app and make purchases online. This card has 89.9% average CAT without VAT and annual commission at no cost. Citibanamex – B Smart University Card . To apply for this credit card you need to be between 20 and 24 years old, a minimum verifiable income of 1,500 pesos and three months of verifiable residence. The documents you need to present at the branch are: official identification (INE or valid passport, in case of being a foreigner you need a permanent resident card or valid passport), present your valid university credential or proof of studies and proof of residence with antiquity 90 day maximum. This card has 91.7% average CAT without VAT, 52.4% annual weighted average interest rate, annuity of 352 pesos plus VAT and annual commission at no cost. These types of tools allow young people to start building credit history, cover their expenses, get used to the operation of a revolving loan and can get more and better financial products in the future. For this, it is important that you analyze which card best suits your financial personality and budget in order to manage your account well.

Which FAANG Stocks Are the Best Post-Earnings Buys?

We discuss which FAANG stocks are the best post-earnings buys.

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August
6, 2021

5 min read

This story originally appeared on MarketBeat

Every time earnings season rolls around, it’s always a good idea to pay attention to the FAANG stocks and how they perform both before and after their quarterly numbers are released. Not only are these some of the most innovative and fundamentally sound companies in the world, but they also make up such a massive portion of the overall indices that each stock can really influence the overall direction of the market. If you aren’t familiar with the acronym FAANG, it refers to some of the strongest stocks in the United States including Facebook, Amazon, Apple, Netflix, and Alphabet. Each of these companies has delivered some truly astounding returns to early investors over the years and it’s easy to find reasons why each one belongs in a long-term portfolio. With that said, certain FAANG stocks stand out as strong post-earnings buys at this time. We are going to highlight three of them below to help you plan out your investment strategies for the coming quarter. Let’s take a further look below. Microsoft (NASDAQ:MSFT)
Microsoft is a company that seems to deliver quarter after quarter of impressive numbers, and the company’s Q4 results were no exception. With so many good things working in the company’s favor at this time, it’s certainly one of the most attractive FAANG stocks to add post-earnings. The price action reflects that, as the stock is nearing new all-time highs and could be heading for $300 a share sooner rather than later. Consider some of the trends that benefit Microsoft’s business at this time, including the ongoing digital transformation of enterprises around the world, the remote work revolution, and the growing popularity of video games. When you stop to take a look at the company’s recently announced Q4 numbers, it’s quite evident that the company’s cloud business is firing on all cylinders, which is another solid reason to consider adding shares at this time. Microsoft reported commercial cloud revenue growth of 36% year-over-year to $19.5 billion along with 51% year-over-year growth for the company’s Azure cloud platform. Finally, the company’s reliable revenue from software businesses like Microsoft Office should allow the company to invest heavily in higher-growth areas such as Azure, which in turn could like Microsoft to becoming the premier enterprise computing company in the world at some point. 
Apple’s latest earnings release was nothing short of a blowout, yet the post-earnings reaction has been somewhat lackluster. With that said, investors need to recognize that the stock rallied considerably up into the report and is simply consolidating that big move. It’s still a great FAANG stock to think about adding at this time, especially since the company is expected to provide details on a variety of new products this fall including the iPhone 13. Additionally, investors should be impressed with how the mega-cap tech company was able to deliver such strong results amidst a global chip shortage that likely caused supply constraints. Although the company’s management warned that chip supply issues might impact sales next quarter, the new product launches and strong services revenue should help to ease those concerns. The consumer computing device company beat the consensus Q3 revenue estimate by over $8 billion and saw its services revenue reach a new all-time high. With the way 5G networks are going to grow over the next few years, Apple should see steady demand for its smartphones and has a fantastic opportunity to grow in emerging markets like China. In fact, the company reported $14.76 billion in sales for the Greater China region, up 58% year-over-year and confirmation that Apple is gaining more ground internationally. The stock could be ready to rally again if it can break out above the previous all-time high of $150 a share and is the type of company that nearly any investor should be comfortable adding to their portfolio.
Finally, Facebook is another great FAANG stock to consider adding following its recent earnings report. Although some investors might be hesitant to add exposure to the social media giant after the company warned that growth will likely decelerate during the second half of 2021, it’s worth noting that Facebook’s management tends to under promise and over deliver on its guidance. The stock sold off following the company’s Q2 results, but it wouldn’t be surprising to see the stock trading back at all-time highs very shortly. If you are a believer in the global economic recovery, this is a great stock to own since it will benefit from more advertising spending in a strong economy. It’s also one of the more undervalued big tech stocks to add at this time with a P/E ratio of 26.61, which is lower than stocks like Apple, Amazon, and Microsoft. Sure, the company underwhelmed investors with its daily active user growth in Q2, but with an EPS increase of 101% year-over-year in the quarter and some of the most actively used social media applications in the world, Facebook is still a great post-earnings buy to consider.