Why visa stock is dropping

That commentary was weaker than some analysts expected. Shares of rival Mastercard Inc. MA, Fiserv Inc. FISV, One opportunity that Visa highlighted was its involvement with companies that help provide access to earned wages in a break from the traditional two-week pay cycle.

Gig-economy companies and some fintech companies have moved to make it easier for workers to get paid at the end of a shift or a work day, in part by using technology like debit cards or Visa Direct transfers. Sources: CoinDesk Bitcoin , Kraken all other cryptocurrencies. Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. Source: Kantar Media. Skip to Main Content Skip to Search.

News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. Dow Jones. Income Statement. Balance Sheet. Cash Flow. Historical Prices. Advanced Charting. News Visa Inc. Key Stock Data. Earnings Per Share TTM A company's net income for the trailing twelve month period expressed as a dollar amount per fully diluted shares outstanding.

This is also evident from the growth in payments volume and processed transactions in the recent quarter. However, the cross-border transaction volumes are likely to suffer for some more time, as international travel restrictions are still in place. The travel bans are linked to the Covid case count, which is likely to normalize as more and more people receive the vaccination.

This is because investors are cautious about lower cross-border transaction volumes due to the decline in travel. While the company managed to outperform the consensus estimates of earnings and revenues in its first-quarter FY results FY Oct-Sept , the same trend dominated its revenues. The payments giant is very sensitive to changes in consumer spending levels. The consumer spending levels suffered in due to the impact of the Covid crisis and the economic slowdown.

That said, the spending levels have seen some recovery over the last six months of , and are expected to further improve over the subsequent quarters, with improvement in the economy.

This is likely to benefit the growth rate of data processing and services revenues. Further, its international transaction revenues were down last year due to the impact of the Covid related travel restrictions, which are still there in most of the countries.

However, as more and more people receive the Covid vaccine, travel bans are likely to be lifted, benefiting the revenue stream. Good secular growth as credit card usage increases. Travel is another boost coming in It's a free cash flow machine. Long term, this will continue to grow, so look beyond any short-term issues. If the stock is down, buy. Investors were gun shy on their conservative guidance. The name has been overly punished.

Great play on both spending, travel, secular trends and fintech. The addressable market continues to expand. Priced well relative to growth.

It's sold off lately, oversold, and it makes no sense. Same with Apple. Stay the course. Recovery will benefit. Significant runway to the upside. MA Visa has the European footprint, which has larger critical mass. But the European acquisition has given them some debt. You can buy MA, but you don't get the breadth of offering or as large an opportunity.

They both have the same kind of risk. Digital is the future. Independent crypto is probably not the future. Governments will still regulate transactions. If there will be competition and alternatives with points programs is a certain risk. Buy a half position due to its recent strength. Likes it here and would consider adding.