Visa Will Figure It All Out!
Visa Inc (V) was able to hold only a poor 0.34% of nearly 3.2% initial gains on April 24, in a reaction to a very solid quarterly release. The powerful and penetrating all the corners of the world, the payment card provider recorded its ever-highest EPS (earnings per share) of $2.51 to beat the crowd's average projection of $2.44. Another jump in its business return was achieved on a historically peaked $8.78 billion of revenue from January to March. Most of the crowd decided to "score" and take profit, without even trying to re-test Visa's highs of March above $290 per share.
This sounds unfair to the company which is easily charging each and every payment or transaction on consumer cards, including rent for homeowners, purchasing of food, energy bills etc, but not be limited to, as Visa management continuously diversifying its sources of income by investing in startups, to add to mostly guaranteed and quite predictable card-based revenue. Overall volume of payments climbed by 8% during, while cross-border contribution (without intra-EU calculations) reportedly jumped by 16%. Visa comments showed the company's own public projections for revenue growth in the whole year of 2024 lie "in the low double-digits" as well, while its EPS growth is expected "in the low teens". Well done forecast, which could attract more investing activity with Visa assets in the nearest two or three weeks, if not before this weekend already. It seems to me that only a rather sharp recent correction in several flagship stocks on Wall Street, including chip makers and some megacaps, prevented the market from a more positive manifestation of their hopes for extending the bullish trend in Visa. So, betting on making up money on Visa shares again is now my choice for May and until mid-summer.
Today's complimentary news is that Visa joins AWS (Amazon Web Service) partner network in order to enhance payment services even more. This collaboration will help cross-border solutions, easing global money transfers and multi-currency holdings and integrating all these into AMS customers' existing operations environment, as well as "reducing the challenges faced by financial institutions and enterprises by making Visa's solutions easily accessible on diverse platforms,” according to Vanessa Colella, Global Head of Innovation and Digital Partnerships at Visa. It may enhance cloud-based connectivity by allowing companies to process payments through VisaNet via AWS, with a measure that may be considered as a potential cost-saver for clients who will not need to spend on local data centers and specialized payment hardware. Startups enrolled in Visa's Fintech Fast Track program can receive up to $100,000 in AWS Activate credits. This could potentially form a bonus to the existing business scheme of both Visa and Amazon, adding to their market values.
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