Mastercard (MA)

[winston]

not vested

Mastercard's quarterly profit missed analyst estimates on Wednesday as the Covid-19 pandemic led to a slowdown in global travel and related spending.

Net income fell 28 per cent to US$1.5 billion, or US$1.51 per share, in the third quarter ended Sept 30.

Excluding items, profit was US$1.60 per share, missing Street estimates of US$1.66, according to IBES data from Refinitiv.

Source: Phillips

[winston]

not vested

Mastercard Inc reported a higher first-quarter profit on Thursday (Apr 28), buoyed by a surge in cross-border spending that helped payment volumes climb.

The company’s profit rose to US$2.6 billion, or US$2.68 per share, for the 3 months ended Mar 31 compared to US$1.8 billion, or US$1.83 per share, a year earlier.

Even as new variants of the coronavirus threaten to upend travel recovery, Mastercard has continued to see a jump in cross-border spending.

Excluding one-time costs, the New York-based company reported earnings of US$2.76 per share. Analysts on average had expected US$2.17 per share, according to Refinitiv.

Source: Phillips

[winston]

not vested

Mastercard

The first smart stock to buy if a Fed-induced recession were to materialize is a cyclical financial stock: Mastercard (MA).

Recessions since the end of World War II have lasted only 2 to 18 months. Comparatively, economic expansions draw out for multiple years. Mastercard is a direct beneficiary of the natural expansion of the U.S. and global economies.

Additionally, Mastercard is poised to benefit from a reversal in the U.S. personal saving rate. Though the personal saving rate of 4.7% in January 2023 was higher than the 2.7% registered this past June, it’s still hovering around a 15-year low. When consumers have less money saved, they tend to turn to plastic. Fewer cash transactions would be a positive for Mastercard.

Investors should be aware that Mastercard has the coveted No. 2 position in credit card network purchase volume locked down in the United States. Though it trails rival Visa by nearly 29 percentage points, having almost 24% of U.S. credit card purchase volume to itself is a significant long-term growth driver.

What’s more, Mastercard, like Visa, has entirely avoided becoming a lender. While this means giving up interest income and fee potential during periods of expansion, it also allows Mastercard to avoid the direct pain that loan losses cause during a recession.

Not having to set aside loan-loss provisions means Mastercard has no capital constraints during a recession or in the period when a new bull market is forming. In short, it’s going to bounce back more quickly from a downturn than many of its peers.

Source: Daily Trade Alert

[winston]

not vested

Mastercard

Interestingly, one of Mastercard’s biggest headwinds and tailwinds are one and the same: It’s a cyclical company.

For Mastercard, the growing prospect of a U.S. recession would likely reduce consumer and enterprise spending, which can impact the fees it collects from its merchants.

But being cyclical has its advantages. Every recession after World War II has lasted just two months to 18 months. By comparison, economic expansions are pretty much always measured in years.

It certainly doesn’t hurt that Mastercard holds the enviable No. 2 position in U.S. credit card network purchase volume. According to Securities and Exchange Commission (SEC) filings in 2021 from the four major payment networks, Mastercard accounted for a 23.7% share of network purchase volume in the U.S. — the top market for consumption worldwide.

However, the international opportunity for Mastercard is even more fruitful. Cash still accounts for a sizable percentage of global transactions, which gives Mastercard a multi-decade runway to organically expand its payment infrastructure or to make acquisitions in order to infiltrate underbanked emerging markets.

Despite being confronted with a constant dangling carrot, management has chosen not to become a lender. Although this means giving up the potential for net-interest income and fees, it also ensures that Mastercard won’t be exposed to delinquencies and loan losses when inevitable recessions do occur.

This simple decision to stick with what Mastercard is best at has kept profit margins consistently above 40% and helped the company rebound from downturns exceptionally quickly.

Source: Daily Trade Alert

[behappyalways]

How Mastercard Plans To Beat Visa
https://m.youtube.com/watch?v=OiRLvUMUDGM

[winston]

not vested

Mastercard on Thursday (Jul 25) reported a bigger-than-expected rise in second-quarter profit, boosted by resilient spending in a turbulent economy.

Unfazed by stubborn inflation and a stormy economic environment, Mastercard’s customers continued to spend heavily on travel and entertainment even as rate hikes by the Federal Reserve have increased the odds of a recession later this year.

Source: Phillips

[winston]

not vested

Buy This Hidden AI Stock Before Investors Discover It

by Tony Daltorio

With Mastercard being a leader in using AI in its industry, the company is one of the most prominent, but undiscovered, beneficiaries of AI.

The stock is still trading near its all-time high—up 15% year-to-date—and is a buy on any weakness, at around $400 a share.

Source: Investors Alley

https://tradesoftheday.com/2023/08/23/b ... scover-it/

[winston]

not vested

<News alert> 4Q23 adj. EPS beat consensus, strong financial outlook holds

Mastercard posted 4Q23 results, adj. diluted EPS of $3.18, beat market consensus of $3.08

Key business drivers continued to record growth on all fronts

Mastercard guided 1Q24F net profit to grow at low double-digits, largely in line with expectations

TP: US$520

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18295

[behappyalways]

Mastercard Launches Its Biometric Retail Payment System In Europe, Using Poland As A Testing Ground
https://www.zerohedge.com/personal-fina ... ing-poland

[winston]

not vested

Mastercard’s second-quarter profit rose as customers kept up spending heavily via its cards, the payments giant reported on Wednesday (Jul 31).

Profit was US$3.3 billion, or US$3.50 per share for the three months ended Jun 30, compared with US$2.8 billion, or US$3 per share last year.

Revenue rose 11 per cent, to US$7 billion, over last year.

Source: Phillips