3 Stocks That Could Benefit from Interest Rate Cuts

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Amazon.Com Inc News

Paypal Holdings Inc,Affirm Holdings Inc

Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Amazon.com Inc, PayPal Holdings Inc, Affirm Holdings Inc. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com

Amazon, Affirm, and PayPal would benefit from an increase in consumer spending that rate cuts could spur.The Federal Reserve is expected to cut interest rates in September for the first time in four years and the stock market should feel an immediate jolt when it happens.

This, in turn, should significantly impact Amazon’s sales, as the company makes money in fees from every item sold on its platform. With consumers paying lower rates on their purchases, it should spark an increase in activity on the platform, and boost net sales for Amazon. is one smaller company that should benefit from rate cuts. Affirm is a leading buy now, pay later company that offers installment loans to customers at the point of sale, whether its online or in-person at the store. It makes money from merchants each time the service is used, and from interest on loans repaid by consumers.

PayPal stock has been in turnaround mode, as it has improved its transaction margins, lowered expense growth, and it boosted its revenue and earnings guidance for fiscal 2024. It also just signed a deal with Adyen, a Dutch payment provider, to add PayPal’s accelerated Fastlane checkout function for its U.S. customers.

 

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