Stockchase Opinions

Mike Vinokur Visa Inc. V-N Unspecified Jun 09, 2025

It owns the technology that processes transactions so it is basically a tech business. However it is very expensive with P/E in the 30 times range so you have to believe they're going to grow. It is a solid business and inflation actually helps them. There are disruptions in the payment space which are chipping away at Visa's moat. Change is coming but how fast - this will affect growth in their business.

$366.660

Stock price when the opinion was issued

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BUY

Many times people have challenged or sold Visa, and every time they were wrong. They will be wrong again.

HOLD

Is consolidating, just like the S&P these days. Nothing wrong with consolidating, as long as it doesn't break down. Visa's chart looks fine.

TOP PICK

97% gross margins, and 60% operating margins. A play on global transaction volumes. Worries about stablecoins; but however people decide to pay for something, Visa will take its share. There will always be competitive threats, but its network is a backbone of payments and can't easily be replicated. Yield is 0.68%.

(Analysts’ price target is $387.33)
HOLD

Largest payment processor in the world. Still lots of growth potential outside NA for transitioning from cash to digital. Value-added services, such as cybersecurity, are now almost 25% of revenue base. Robust network. Don't discount them because of stablecoin, will be actively involved.

BUY ON WEAKNESS

Really high quality, but quite expensive. Great performer for a decade. More and more people are using credit cards. Concerns about different crypto currencies, but so many people still use their Visa cards.

PAST TOP PICK
(A Top Pick Jul 17/24, Up 30%)

Remains one of the best compounders out there. Has moved beyond swipe fees to value-added services; fraud tools and data analytics continuing to grow extremely quickly, now accounting for over 25% of revenue. Core business benefiting as travel rebounds. Consumer spending remains resilient. Trades at 31x forward PE, not cheap but fair.

BUY ON WEAKNESS

It reports Tuesday. It always sells off after it reports, because its financials are hard to understand.

BUY

A good name to look at for credit services in the financial sector.

BUY

Recent struggles are probably due to stablecoin, which is tied to the US dollar. If it can manifest into an efficient system (very low, or zero, transaction fees), could be a threat to V's business. Visa also has the ability to change its fees or to set up its own stablecoin. He's not too concerned, it's really just noise. This is his favourite.

Down 8% off 52-week high, which is normal trading that can happen to any stock at any time. Down 3% this week. As good a time as any to buy.

HOLD

The world of business is just fine. Great company, will do well longer term. Fears of stablecoin. Short-term issues will get sorted out. 

He owns MA.