Stock FAQs

why did visa stock go down

by Eliezer Ebert Published 3 years ago Updated 2 years ago
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Visa stock is dropping today due to a court ruling regarding a $5.7 billion settlement deal that is being rejected by New York appeals court. Both MasterCard (MA) and Visa (V) stocks are dropping today on the news that new litigation is problem the next step in their ongoing battle with retailers over allegations that their credit-card fees were improperly fixed.

Full Answer

Why earnings season could be great for Visa (V)?

Oct 27, 2021 · What happened. Shares of credit card giant Visa ( V -0.23% ) had dropped 4.5% as of 10:40 a.m. EDT Wednesday despite the company beating earnings in its fiscal fourth-quarter 2021 earnings report ...

Is Visa stock a Buy Right Now?

Nov 17, 2021 · As of 3:30 p.m. ET, Visa's stock price was down more than 5%. So what Amazon claims that Visa's recently increased transaction processing fees are leading to higher prices for online shoppers, at a...

Why did my stock stop trading?

Nov 05, 2021 · This was the end of Visa's fiscal year. So for Q4, revenue came in at $6.6 billion and that was up 29%. And that was a small beat on the top line. Same thing on the bottom line, earnings per share ...

Why will stocks keep going up?

Mar 19, 2021 · This Visa DOJ news has shocked the market. Accordingly, shares of Visa stock are down approximately 5% at the time of writing. The probe focuses on questions around whether financial technology ...

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Why did Visa stock drop so much?

Visa was caught in the general market turmoil after COVID-19 forced the temporary dampening of economic activity around the world last month. With major spending categories like restaurants, travel, and retailing nearly halted, the credit card giant likely saw a significant decline in its business last month.

Is Visa stock a good buy right now?

Stacked up against its potential for high-teens percentage annual earnings growth, this is a reasonable valuation for a stock of Visa's quality. The 0.7% dividend yield is also a bit higher than its 0.6% 13-year median yield, which also supports the idea that Visa is a solid buy right now.Feb 27, 2022

Is Visa a good stock to buy 2021?

Bottom line: Visa stock is not a buy, as it in a months-long consolidation with a 252.77 buy point. Keep an eye on the Dow Jones card giant, as it compares favorably with many top-rated large-cap stocks to buy or watch.Mar 7, 2022

Why did my stock price go down?

Stock prices go up and down based on supply and demand. When people want to buy a stock versus sell it, the price goes up. If people want to sell a stock versus buying it, the price goes down.Jan 28, 2022

Is Visa overvalued?

The 30% overvalued market could deliver negative or flat returns for the next five to 10 years according to some analysts....Summary.Analyst Median 12-Month Price TargetMorningstar Fair Value EstimateUpside To Price Target ( Including Dividend)Upside To Fair Value + Dividend41.06%11.72%9 more rows•Nov 28, 2021

Should I buy Visa stock 2022?

Visa trades for a lofty price/earnings multiple at 32 times projected fiscal 2022 earnings of $7.11 a share, more than double the P/E ratio of banks like JPMorgan, because of ongoing adoption of digital payments, a lucrative global duopoly with Mastercard (MA) and little credit risk.Jan 31, 2022

Is Visa undervalued?

Visa is a high-quality company that is undervalued under current market conditions.Jan 14, 2022

Is Visa a blue chip stock?

Visa (NYSE: V) Visa has met or beaten earnings expectations for 4 straight quarters and has seen both profit and revenue growth in each of the last 5 years. With a firm foothold in the payments processing industry, Visa will likely be a blue chip stock for many years to come.Mar 23, 2022

Why is Visa good?

Since it generally mirrors the state of the economy, which an overwhelming amount of the time expands rather than contracts, Visa is great long-term stock to own. Its top position makes it hard to compete with, and it can provide security and stability to a balanced portfolio.Aug 24, 2021

Do I owe money if my stock goes down?

The price of a stock can fall to zero, but you would never lose more than you invested. Although losing your entire investment is painful, your obligation ends there. You will not owe money if a stock declines in value. For these reasons, cash accounts are likely your best bet as a beginner investor.Mar 8, 2022

Should you buy a stock when it's going up?

For long-term investors, it's often best to ignore the ups and downs of the market. Instead, focus on your plan, and make sure that your money is well-diversified according to your risk tolerance. That's it. Don't rule out investing when the market reaches new highs—it's supposed to do that.

What happens if your stock goes negative?

Stock Price Decline Example That means the value of your stock decreased by 20%. If the stock market is down and the investment price drops below your purchase price, you'll have a “paper loss.” The opposite is also true: If the stock price increased to $12 per share, the value would increase by 16.67%.May 17, 2021

An e-commerce powerhouse is pushing back against price hikes

Joe honed his investing skills as an analyst for Stock Advisor. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns.

What happened

Shares of Visa ( NYSE:V) fell on Wednesday after Amazon.com ( NASDAQ:AMZN) told its customers they would no longer be able to pay with credit cards issued by the payment processing titan in the U.K. beginning next year.

So what

Amazon claims that Visa's recently increased transaction processing fees are leading to higher prices for online shoppers, at a time when inflation already poses a serious threat to the economy.

Now what

Visa's transaction volume in the U.K. is a relatively small part of its global operations, and Amazon accounts for just a fraction of those payments. So, even a permanent loss of Amazon's U.K. business would likely have a minimal impact on Visa's profits.

This payment giant delivered solid results, but Wall Street wanted more

Visa ( V -0.85% ) is one of the world's best-known brands. Its payment cards are accepted by over 80 million merchants around the globe, in over 200 countries and territories. Despite that impressive scale, the stock has actually underperformed the S&P 500 over the last three years. Can Visa pick up the pace and break that trend?

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Lower spending in categories like travel likely impacted the credit card giant's business last month

Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. Follow @tmfsigma

What happened

Visa ( NYSE:V) stock modestly outperformed a weak market last month by dropping 11% compared to a 12.5% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.

So what

Visa was caught in the general market turmoil after COVID-19 forced the temporary dampening of economic activity around the world last month. With major spending categories like restaurants, travel, and retailing nearly halted, the credit card giant likely saw a significant decline in its business last month.

Now what

Visa said in early March that it had seen only a minor impact on its business to date, yet that was before conditions deteriorated in the middle of the month.

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Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy

Is Visa stock volatile?

Typically Visa is less volatile than most other fintech stocks, and it also has held up much better than most of the financial sector during the COVID-19 pandemic. Plus, Visa actually reports its earnings after today's trading session, so it may seem odd that it's falling so much.

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