Northland analyst Tyler Wood noted that Square (SQ) recently announced a partnership with the United Postal Service, which he believes suggests the discounts available through Stamps.com (STMP) will now also be available through Square. Wood, who sees this development as a net negative for Stamps.com and thinks it could present a challenge to customer acquisition, keeps a Market Perform rating on Stamps shares.
After The Wall Street Journal reported yesterday that the DOJ is probing Visa's (V) relationships with large fintech firms like PayPal (PYPL) and Square (SQ), Morgan Stanley analyst James Faucette said he thinks the probe may focus on if fintechs are incentivized to route volume to Visa's debit network over alternatives. However, he thinks the issue is "likely more noise" and generally believes that any Visa share weakness associated with this headline is a buying opportunity. The named companies generally have models whereby they charge merchants largely fixed transaction fees and then try to minimize transaction costs, while undoing that structure, or introducing added regulation, would hurt fintechs' business models and reduce options for newer and smaller businesses while leaving Visa largely unaffected, argues Faucette, who has an Overweight rating and $280 price target on Visa shares.