Latest On Apple Inc. (AAPL), Bank of America (BAC), Facebook Inc (FB)

Apple Inc. (NASDAQ:AAPL) today begins the rollout of its ambitious mobile purchase and payment service known as Apple Pay. The company has tapped a number of retailers and financial institutions to support the service. However, giant retailers such as Wal-Mart Stores Inc (NYSE:WMT) are not part of the Apple Pay network. Nonetheless, over 220,000 stores including Whole Foods, Walgreen Company (NYSE:WAG) and MacDonald’s Corporation (NYSE:MCD) are participating in it.

Credit-card networks such as Mastercard Inc (NYSE:MA), Visa Inc (NYSE:V) and American Express Company (NYSE:AXP) are part of the Apple’s mobile payment. The Apple Pay service makes use of what is known as near-field communication, which is supported by iPhone 6 and iPhone 6 Plus but not the older devices.

Analysts estimate that the revenue from Apple Pay is likely to come in the region of $118 million by 2015 and about $310 million by 2016. Additionally, analysts expect the mobile wallet to increase the demand for Apple devices.

Although Bank of America Corp (NYSE:BAC) is trying to put the woes inherited from the financial crisis of 2008 behind it, such efforts had a negative impact on profits in the latest quarter. The bank earned a profit of just about $168 million in its 3Q2014, compared with a profit of $2.5 billion in the like quarter a year earlier. When dividend payment is taken into account, Bank of America Corp (NYSE:BAC) suffered a net loss of $0.01. Wall Street expected a net loss of $0.09 for the quarter.

Nonetheless, the bank likes it that it is reducing its legal headache to clear the way for growth. It recently agreed to pay $16.65 billion to settle some sour mortgage issues as part of the clearing the way.

Facebook Inc (NASDAQ:FB) paid more for the acquisition of WhatsApp than it negotiated. Although the world’s biggest social network agreed to pay $16.90 billion to purchase WhatsApp, a closer look at the deal after it closed reveals that Facebook actually paid about $21.8 billion for the acquisition. An additional $2 billion or so in the acquisition value arose from delays to close the deal during which time the stock of Facebook Inc (NASDAQ:FB) gained. The deal involved cash and stock, but the cash component was smaller compared with stock.

About the Author

Coper graduated from the University of Chicagi with majors in political science and journalism.

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