Shares of credit card giant Visa (V -1.03%) stock took a tumble today, falling 5% through 12:40 p.m. EDT on news that the U.S. Department of Justice is investigating the company for engaging in potentially anticompetitive practices in the debit card market, The Wall Street Journal reports this morning.
Full Answer
Why earnings season could be great for Visa (V)?
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 visa acquire Cybersource?
Oct 27, 2021 · What happened. Shares of credit card giant Visa ( V -1.03% ) 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 ...
Why did Visa stock drop?
Nov 26, 2021 · News of a new coronavirus variant in South Africa sent stock markets reeling on Friday, with the S&P 500 falling 2% through 12:22 p.m. ET and the Dow tumbling 2.5%. Even financial giants like Visa ...
Why dividend paying stocks are a mistake?
Nov 17, 2021 · -2.65% Visa Stock Falls As Amazon Will Stop Accepting Company’s Credit Cards That Were Issued In The UK Shares of Visa found themselves under pressure after a Bloomberg report indicated that Amazon...
Why did Visa stock drop?
Visa has seen its shares decline rapidly in recent weeks, on the back of new COVID fears and weak sector performance. Visa will do well in the long run, however, as there are multiple growth drivers that will propel Visa's earnings per share upwards.Dec 1, 2021
Is Visa stock a good buy?
Bottom line: Visa stock is not a buy, as it in a months-long consolidation with a 252.77 buy point.Mar 7, 2022
Is Visa stock expected to rise?
Stock Price Forecast The 32 analysts offering 12-month price forecasts for Visa Inc have a median target of 275.00, with a high estimate of 304.00 and a low estimate of 225.00. The median estimate represents a +29.22% increase from the last price of 212.81.
Is Visa stock a buy sell or hold?
Visa has received a consensus rating of Buy. The company's average rating score is 2.83, and is based on 20 buy ratings, 4 hold ratings, and no sell ratings.
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 Estimate29.11%10.49%Upside To Price Target ( Including Dividend)Upside To Fair Value + Dividend41.06%11.72%8 more rows•Nov 28, 2021
Does Warren Buffett own Visa stock?
Warren Buffett's Berkshire Hathaway has sold a combined $3.1 billion worth of shares in Visa and Mastercard and bought a $1 billion stake in Brazilian digital lender Nubank. In SEC filings, Berkshire Hathaway reveals that is has sold Visa shares worth $1.8 billion and Mastercard shares worth $1.3 billion.Feb 21, 2022
How profitable is Visa?
Visa makes its profits by selling services as a middleman between financial institutions and merchants. The company does not profit from the interest charged on Visa-branded card payments, which instead goes to the card-issuing financial institution.
Is Visa a blue chip stock?
Blue chip stocks are giant companies with solid reputations. Think of General Electric, Intel, Visa, Wal-Mart and Walt Disney — financially fit corporations with dependable earnings, usually paying additional income to investors in the form of dividends.
What Visa actually does?
As a trusted network, we facilitate digital payments across more than 200 countries and territories among a global set of consumers, merchants, financial institutions, businesses, strategic partners and government entities through innovative technologies.Mar 8, 2022
Is Visa undervalued?
Visa is a high-quality company that is undervalued under current market conditions.Jan 14, 2022
Is Visa a good stock to buy 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
Does Visa pay a dividend?
How much is Visa's annual dividend? The annual dividend for Visa (NYSE:V) is $1.50.
What happened
Shares of credit card giant Visa ( V -2.43% ) 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 released last night.
So what
Visa's revenue beat represented 29% year-over-year growth from last year's Q4 revenue, and GAAP profits surged 68% year over year. Visa's full-year results were also good, but less so. Full-year revenue rose 10%, and full-year profit, 13%.
NYSE: V
Visa management credited "the continuation of the recovery in many global economies and the increased diversification of our revenue with new flows and value added services" for helping it produce the strong numbers, and predicted that "looking ahead, Visa is even better positioned for the future as cross-border travel recovers and we continue to drive the rapid growth of digital payments.".
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
So what
Does this make sense, though? I mean, on the one hand, sure, coronavirus couldn't have picked a worse time to rear its ugly head again. South Africa literally dropped this bombshell on the markets just as American consumers were digging into their Thanksgiving turkeys Thursday, and fueling up to go out and begin their Black Friday shopping.
NYSE: V
For a stock market driven by consumer spending, this was truly horrible timing.
Now what
On the other hand, consider how investors are reacting today: They're selling off Visa and Mastercard shares, two of the companies most favorably positioned to benefit if consumers once again retreat to their keyboards to shop online with credit cards rather than go out to physical stores where they might be tempted to -- horrors! -- pay for their purchases with cash money..
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
Financial Performance
Payments volume of Visa on a constant-dollar basis climbed 34% year over year in the third quarter. Reflecting transactions processed by Visa, the company’s processed transactions grew 39% year over year to 42.6 billion courtesy of domestic transactions.
Balance Sheet (as of Jun 30, 2021)
Visa exited the quarter with cash and cash equivalents of $18 billion, which increased 10.7% from fiscal year end Sep 30, 2020. Total assets were $82.7 billion, up 2.2% from fiscal year end Sep 30, 2020. Long-term debt decreased 0.4% from fiscal year end Sep 30, 2020 to $21 billion.
Share Buyback and Dividend Update
In the quarter under review, the company bought back shares worth $2.2 billion.
What is it exactly that the Justice Department thinks Visa has done wrong?
So what is it exactly that the Justice Department thinks Visa has done wrong? According to "people familiar with the matter," says WSJ, it thinks Visa may have "limited merchants' ability to route debit-card transactions over card networks that are often less expensive" than Visa's own, boosting Visa's share of "lucrative" network fees on debit cards' use.
Is Mastercard a Discover or Amex?
Now as for why this investigation of Visa is dragging down Mastercard stock with it -- but not AmEx or Discover -- it's worth pointing out that the Journal specifically identifies Mastercard as the subject of similar DoJ concerns, but doesn't name either AmEx or Discover.
