Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Green Dot (NYSE: GDOT ) got the green light to rally upwards of 10% after a research report from Jefferies claimed that American Express (NYSE: AXP ) was bailing on its competing Bluebird prepaid cards.
So what: The report indicated that American Express was withdrawing its prepaid cards out of Wal-Mart Stores (NYSE: WMT ) , as they didn't receive a warm reception during a program to test the waters. Jefferies analysts acknowledge that they don't have official word, but its channel checks suggest that AmEx is pulling out.
Now what: That helps allay competitive fears for Green Dot, as its exclusive distribution partnership with Wal-Mart comprises the majority of its sales. As the prepaid-card market has grown, larger rivals in financial services like American Express and JPMorgan Chase have been jumping in, putting a lead on smaller companies like Green Dot. If Jefferies turns out right, then this is definitely good news for Green Dot.
Interested in more info on Green Dot? Add it to your Watchlist.