After posting quarterly results, Visa (V) and Mastercard (MA) slumped again, struggling to outperform stock markets over the last year.
In the first quarter, Visa earned $3.17 per share (non-GAAP). Revenue increased by 14.6% Y/Y to $10.9 billion. Payment volumes grew Y/Y, helped by cross-border volume and processed transactions.
Investors might take advantage of the continued fall in V stock. Markets are overly worried about the government forcing it and Mastercard to charge just 10% in interest on balances.
Mastercard earned $4.76 a share (non-GAAP). Revenue increased by 17.3% Y/Y to $8.8 billion. The business benefited from purchase volume rising by 9%. Trading at a price-to-earnings ratio of below 33 times (as of last week), MA stock is not inexpensive. However, the firm has strong prospects to grow volumes over the Discover network.
Mastercard is extending its credit portfolio agreement. It will leverage Capital One as a great partner. More importantly, managing the potential risk of cybersecurity threats separates the company from the competition.
Threat actors will use AI more extensively to target customers and the credit network. Still, it will continue to offer cybersecurity solutions, using its data insight solutions to prevent fraud.
Your Takeaway
Add MA and V stock to the watch list. Both firms are stable, growth firms that the market does not appreciate.
Tech Insider
