Visa ($V) Drives Dow Higher Amidst Trading Low by 1.45%Visa Inc. (NYSE: NYSE:V ) emerged as a beacon of strength in the stock market, propelling the Dow Jones Industrial Average alongside Boeing (NYSE: BA) following its robust quarterly results. Analysts responded with enthusiasm, hiking their price targets on Visa stock as they anticipate accelerated growth in the coming quarters.
Visa's stellar performance in its latest earnings report showcased a 20% surge in adjusted earnings to $2.51 per share, surpassing analyst expectations. Net revenue climbed 10% to $8.78 billion, driven by an 8% increase in payments volume, an 11% rise in processed transactions, and a remarkable 16% growth in cross-border payments volume.
CEO Ryan McInerney attributed Visa's success to "stable" consumer spending, underscoring the resilience of the company's business model amidst challenging market conditions.
For the third quarter, Visa ( NYSE:V ) provided bullish guidance, expecting low double-digit net revenue growth and operating expense growth in the low teens. Earnings per share growth is forecasted to be at the "high end" of a low double-digit gain, indicating strong momentum moving forward.
Maintaining its full-year outlook, Visa ( NYSE:V ) anticipates net revenue and operating expense growth in the low-double digits, with earnings per share growth in the low teens. Wall Street analysts are bullish on Visa's prospects, with forecasts predicting a 13% jump in adjusted earnings for 2024 and a 9.9% revenue growth.
In response to Visa's impressive performance and optimistic guidance, several research firms raised their price targets on Visa ( NYSE:V ) stock. RBC Capital highlighted the durability of Visa's business model and the potential for acceleration in the second half of the year, raising its price target to $315. UBS predicts strong organic net revenue growth and increased its price target to $325, while Wedbush raised its target to $300, maintaining an outperform rating on the stock.
Visa ( NYSE:V ) stock surged 2.5% in early Wednesday trading, signaling a potential move above its 21-day exponential moving average. With shares poised for a rebound above their 50-day line, investor confidence in Visa's growth trajectory remains strong.
As Visa ( NYSE:V ) continues to drive innovation and capture market opportunities, investors are optimistic about the company's ability to deliver sustained growth and value creation in the dynamic payments industry.
Visa
Visa's Strong Earnings Amidst Rising Consumer Debt ConcernsIn the wake of Visa Inc.'s impressive fiscal second quarter 2024 results, with net revenue soaring by 10% and payments volume surging by 8%, investors have been quick to celebrate what appears to be a positive indicator for the economy. However, a deeper dive into the current state of consumer credit card debt reveals a more troubling narrative.
According to recent data from the Federal Reserve Bank of New York, Americans' total credit card balance has ballooned to a staggering $1.129 trillion in the fourth quarter of 2023, marking the third consecutive quarter where balances have surpassed the $1 trillion mark. This surge in debt, totaling $273 billion since the fourth quarter of 2021, is fueled by record-high interest rates, persistent inflation, and various other economic factors.
Visa's robust earnings report, highlighting a notable increase in transactions and payment volume, may actually reflect consumers falling deeper into debt to maintain their spending habits. While stable consumer spending is touted as the driving force behind Visa's success, it may be masking the reality that many Americans are relying on credit cards to make ends meet, rather than indicating genuine economic prosperity.
The historical trend of credit card debt growth, characterized by a "hockey-stick" pattern followed by sharp declines during economic crises, underscores the precarious nature of the current situation. As credit card balances continue to climb, the risk of a similar economic downturn looms large. If consumers are unable to pay off their debts, they may be forced to cut back on spending, potentially leading to a slowdown in economic growth.
While Visa's strong earnings may be cause for short-term celebration among investors, they should be viewed with caution. The underlying growth in consumer credit card debt suggests that the economy may be on less stable footing than Visa's numbers would imply. As such, it's crucial for investors to consider alternative investment options that can weather potential economic storms.
As Visa's fiscal Q2 results beat market expectations and management issues upbeat guidance for the future, it's imperative for investors to remain vigilant and consider the broader economic context. Visa's success may not be as indicative of economic health as it initially seems, and prudent investors would do well to heed the warning signs of a growing consumer debt crisis.
In conclusion, while Visa's earnings report may paint a rosy picture on the surface, the underlying reality of mounting consumer debt warrants a more cautious approach from investors. As the economy navigates uncertain waters, it's crucial to prioritize investments that can withstand potential downturns and provide stability in turbulent times.
VISA Short-term correction. Know where to buy.Visa (V) has been trading within a long-term Channel up pattern since the October 13 2022 Low. The 1D MA50 (blue trend-line) has been in support of the latest Bullish Leg since November 02 2023, so there is a long-time that the stock hasn't given a healthy pull-back for medium-term buying.
This has come in the past in the form of an approximately -8.00% correction, particularly when the 1D RSI posts a Bearish Divergence, i.e. trades within a Channel Down while the stock is within a Channel Up.
As we are currently on such a Bearish Divergence since January 25, we expect a technical pull-back soon, thus turning bearish and targeting the 1D MA100 (green trend-line) at $270, where we will start buying again for the medium-term.
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Wave of the day: Visa
5 good reasons for NYSE:V stock
1. Bounce from the value zone
2. Rising MACD histogram
3. Buying Volume coming in
4. Pocket Pivot on the last day
5. Analysts have set a mean price target forecast of 160.17. This target is 20.33% above the current price.
What's your take on Visa?Comment below
Legal Disclaimer: The information presented in this analysis is solely for informational and educational purposes only and does not serve as financial advice.
PYPL falls into deep oversold zone LONGPYPL on the 30-minute chart over the past week fell 10 %, Based on the anchored
VWAP bands as well as the volume profile it is in deep oversold territory potentially
as a reaction to the stablecoin plan. Volumes are relatively hig while the ZL MACD
has had a line cross under a flipping histogram. I see this as an excellent long
swing trade setup targeting the mean VWAP or the POC line as the first target for 50%
of the trade and 25% each targeting the upper VWAP lines. I will take a combination
of a number of stocks and a put option 2-3 months out for some trade risk insurance.
Visa (V): Bullish Momentum in the Financial SectorVisa (V): NYSE:V
Visa , a key player in the financial sector, is currently in the overarching cycle of Wave (5). It appears we've concluded Wave (4) at $174.60 and are on the path to finalizing Wave (5). However, this process will take some time, as we are now in a subordinate Wave 3, which is on the verge of completing a circled subordinate Wave ((iii)).
Consequently, Wave ((iv)) is likely next. While a rise to the maximum of $310.50 is possible, we anticipate a sell-off in the coming days for Visa, potentially down to $260 or even $243. Anything below this range would be excessively deep. This range should mark a potential turning point for Visa for Wave ((v)) or 3. We're closely monitoring the situation and will place a limit order upon observing any weakness.
On a daily timeframe, we are in the middle of the Wave 3 in red and are still bullish.
V Visa Options Ahead of EarningsVisa has a pattern to trade lower after the earnings and then rally after few months.
That`s why, analyzing the options chain and the chart patterns of V Visa prior to the earnings report this week,
I would consider purchasing the 275usd strike price Calls with
an expiration date of 2024-6-21,
for a premium of approximately $13.15.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Visa's (NYSE:$V) Strategic Move into the Crypto World
In a groundbreaking collaboration, Visa (NYSE: NYSE:V ), a global leader in digital payments, has joined forces with Transak, a prominent payments infrastructure provider for crypto and NFTs, to revolutionize the crypto-to-fiat conversion landscape. The announcement, made on January 30th, 2024, marks a pivotal moment in the crypto industry, promising to bridge the gap for millions of users seeking a seamless exit from the crypto market.
Unlocking Global Crypto Withdrawals:
Transak's strategic partnership with Visa (NYSE: NYSE:V ) involves implementing Visa Direct capabilities to enhance its global off-ramp service. This move enables users in over 145 countries to effortlessly convert their cryptocurrency holdings into local fiat currencies, addressing a significant gap in the current crypto market.
Real-Time Transactions with Visa Direct:
One of the standout features of this collaboration is the integration of Visa Direct, allowing for real-time card withdrawals. Unlike traditional banking methods that can take days for fund transfers, Visa (NYSE: NYSE:V ) Direct processes transactions in as little as 30 minutes. This capability significantly streamlines the process of converting and transferring funds, especially across borders, providing users with a faster, more secure, and compliant way to access their funds in local currencies.
Widespread Accessibility and User-Friendly Experience:
Transak's presence on over 350 leading Web3 wallets and games, including MetaMask, Trust Wallet, Coinbase Wallet, Ledger, Splinterlands, and Decentraland, ensures widespread accessibility. This collaboration puts crypto-to-fiat conversion at the fingertips of millions globally, offering a user-friendly and intuitive experience. The integration with familiar platforms within the crypto community enhances the ease of use for individuals looking to cash out their digital assets.
Impact on Crypto Adoption and Market Maturity:
The collaboration between Transak and Visa Direct ( NYSE:V ) is a crucial step towards the maturation and mainstream acceptance of digital currencies. By dismantling the barriers of complexity and uncertainty associated with converting cryptocurrencies into local fiat currencies, this partnership is set to drive crypto adoption among the general public. It marks a significant "W" for the crypto industry, showcasing a tangible solution to a long-standing bottleneck.
Investor Outlook:
From a technical perspective, Visa's (NYSE: NYSE:V ) stock has broken the rising trend in the medium-long term, signaling a stronger growth rate. With no resistance in the price chart, further rise is indicated.
Conclusion:
Visa's (NYSE: NYSE:V ) strategic collaboration with Transak represents a pivotal moment in the evolution of the crypto market. The integration of Visa Direct capabilities not only streamlines the crypto-to-fiat conversion process but also positions Visa (NYSE: NYSE:V ) as a key player in the growing digital currency ecosystem. For investors, this move signals potential growth and further establishes Visa (NYSE: NYSE:V ) as a forward-thinking company embracing the future of finance.
As the crypto landscape continues to evolve, Visa's strategic steps into this space are sure to capture the attention of investors looking for opportunities at the intersection of traditional finance and the digital economy.
V Bullish BreakoutV has been in bull trend since long time and now after great earnings it has just broken out of the bullish channel and retested the channel outlines as new support . This is a sign of big breakout about to happen and we will reach 280+ very soon
Entry @ 273
TP1 @ 281
TP 2 @ 295
Tp 3 @ 303
Stop loss this time due to my long term commitment and its strong fundamentals the stop loss I Am putting 10% down the 200 EMA
Stop loss is 222
Visa ~ The 12 Month Blue Chip Trade Visa - NEO:VISA
Earnings:
Rep: $2.41 EPS ✅ Higher Than Expected
Exp: $2.34 EPS
Revenue
Rep: $8.6B ✅ Marginally Higher Than Expected
Exp: $8.56B
6 - 12 Month Trade
A potential 29% relatively safe return for the 2024 year in this dividend paying, well performing blue-chip stock. c$2.00 per annum dividend per share .
Monthly Chart (left)
✅ Long Term Monthly Trend Intact
✅ Above 10 month moving average
Daily Chart (right)
✅Cup and Handle Breakout
✅Above 200 day aligning with diagonal support
🎯 Target 1 at $330 is where the long term and short term fib extension levels indicated overhead resistance will like be. Taking 80% of the position off the table here would be wise. The Cup and Handle tare may be reached at a much later date after a correction.
🟢ENTRY ZONE: $254
$264 would be ideal but I may enter earlier
❌STOP
The stop should be placed just under the horizontal support line at roughly $249. IF the 200 day or diagonal support is lost exit the trade. Same goes for the 10 month moving average on the long term chart.
Take a tighter stop is its a larger position.
PUKA
Controlled Sideways Trends Ahead of EarningsThe Giant Banks and Credit Card companies benefit the most from the Federal Reserve Board's overnight interest rate hikes. As the FRB increases its lending rate, it allows big banks and credit companies to increase their interest rates to consumers, small businesses, etc. That usually means higher revenues.
NYSE:V is in a sideways trend that is not as consistent as would be ideal ahead of its earnings report in about 3 weeks. However, HFTs are aware of the tendency for credit card companies to prosper during high interest-rate markets.
Study the candlestick patterns: Note the quick reversal back down after a higher price level was reached. Note the rebound the same day when price dropped out of the lows of this sideways trend. There is control in this pattern which is typical of Professional trading activity.
V (VISA) breaks new ground! Is it all blue sky for V?
While V might be overheated in the short term, with a 2-3 week pullback on the cards to the 50DMA, a strong breakout trend might indicate big gains for the next 3 months.
Accumulation is still climbing and strong momentum away from the 200DMA indicates we could be in for a solid medium-term rise.
VISA Pull-back to the 1D MA50 possible.Visa Inc. (V) has gone a long way since our last analysis (see chart below) which hit both our bullish and bearish targets:
The stock has made a +15.40% Higher High from the bottom of the long-term Channel Up, which is consistent with 2 out of the 3 previous Bullish Legs within this pattern. After those Higher Highs were formed, pull-backs to Higher Lows of -8.41% to -10.82% followed, all of which hit or approached very closely the 1D MA200 (orange trend-line).
As a result, our sell's target will be at least on the 1D MA50 (blue trend-line) at $250.00.
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VISA Potential for Bearish Trend Initiation🔹 Last week, VISA experienced a decisive break below a long-standing ascending channel, marked by an unambiguous weekly and daily close. This occurrence constitutes a potential bearish signal, which may swiftly herald the commencement of a substantial downtrend.
🔹In scrutinizing Fibonacci retracement levels, it is notable that a definitive rebound materialized at the 61.8% retracement mark, only to be succeeded by a consequential downward breakout. Moreover, attention must be directed to the 361.8% Fibonacci level, which serves as a prospective ultimate downside target. This is underpinned by the prospect of creating an advantageous risk-to-reward trading setup.
🔹This situation offers a lucrative selling opportunity, and our detailed trade setup has been disseminated within our channel.
VISA Poised For GreatnessVisa processes more than $11.6 trillion in gross dollar volume (GDV), made up primarily of digital payments with the remainder being things like ATM withdrawals, B2B transactions, etc. Alongside Mastercard, which is en-route to process $9.2 trillion, this makes Visa one of the two largest payment processors in the world. The company evidently has a wide moat that is targeted by competitors and regulators.
While many competitors such as Block (SQ) and Paypal (PYPL) seek to penetrate the high-margin space, Visa is well-positioned to benefit from the continued growth of digital payments and serve as a foundation for digital transactions with a wide moat that can be difficult to substitute.
Digital payments, a core part of Visa’s transaction value, are estimated (2) to reach a $9.5 trillion GDV in 2023, and grow to $12 trillion in 2025.
The Credit Card Competition Act May Be A Major Negative Catalyst
Acknowledging that the passing of this act is not a given, investors may see a large portion of the profits of payment processors like Visa wiped out should this law pass. In its current proposition, the legislation would enable merchants to choose an alternative payment processor (one that isn’t Visa or Mastercard) to execute payments for their customers.
Merchants instead of customers are the ones covering payment processing fees, so they have a large incentive to route payments to the cheapest competitor. Inevitably, Visa will be forced to lower their payment fees to compete with these cheaper alternatives, thereby compromising a key income stream.
Large companies like Walmart and Amazon will especially benefit from this change as they stand to reduce the fees paid to processors like Visa and Mastercard.
I estimate that this bill or a compromised version of it will pass, and erode Visa’s oligopolistic moat, and therefore their margins and net profits.
Visa Will Only Capture 30% of Serviceable Addressable Market
In 2021, the US value of non-cash payments was estimated to be over $128.51 trillion
I estimate a Total Addressable Market (TAM) of $100 trillion to $150 trillion, based off data from the US plus the rest of the world.
But I think that a more realistic Serviceable Addressable Market (SAM - What Visa’s share of the TAM could be) for Visa is between $50 trillion and $75 trillion.
Alternative data estimates indicate that the global SAM for card networks will grow to $60 trillion in 2027. Of the SAM midpoint of $62.5 trillion by 2028, I estimate that Visa manages to capture 30% resulting in a GDV of $18.75 trillion.
Visa had a take rate of about 0.2247% for the last 9 months, up 9.4% YoY from 0.2054%. Assuming Visa captures my estimated GDV of $18.75 trillion, the revenue in 2028 comes up to $42.2 billion (5.8% CAGR revenue growth)
As most of the developed world already prefers cards, Visa will find it more difficult to open up international markets, so I expect the company to reach this high-point.
The International Segment Is A Primary Revenue & Growth Driver
Much of Visa’s growth comes from international markets, and there are two key verticals to watch for the company: e-commerce and B2B cross-border payments which is very pivotal VISA.
E-commerce is growing rapidly, and Visa is the leading payment processor for online transactions, making it well-positioned to capture this growing market.
Visa is also expanding into business-to-business (B2B) payments and cross-border payments. These markets have a lot of potential, and Visa is investing heavily to capitalize on these opportunities.
V Visa Options Ahead of Earnings If you haven`t sold V Visa ahead of the previous earnings:
Then analyzing the options chain and the chart patterns of V Visa prior to the earnings report this week,
I would consider purchasing the 230usd strike price Puts with
an expiration date of 22023-11-17,
for a premium of approximately $5.15.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
V | VISA | Informative NYSE:V
Bullish Target Price 1: $241.81 appears as an immediate resistance point, given the horizontal line drawn around that level.
Bullish Target Price 2: If the stock manages to exceed the first target, the next potential bullish target is $244.73.
If the stock price falls below the bearish line located at $238.33:
Bearish Target Price 1: $237.67 seems to be the next support, based on the line illustrated.
Bearish Target Price 2: If the price continues its downward trajectory, it might find support around the $236.21 level.
VISA Marching to the All Time High. Early to buy still.Visa is rising gradually after finding Support firmly on the MA200 (1d) and the bottom of the Channel Up.
In accordance to the previous Channel Up rises, when the MA50 (1d) closes a candle over it, the rally will be confirmed.
Trading Plan:
1. Buy on the current market price.
Targets:
1. 252.90 (All Time High).
Tips:
1. The RSI (1d) rebounded from below the oversold zone (30.00) which justifies buying now and not waiting for the MA50 (1d).
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VISA: See the excellent levels this strategy offers.Visa has been trading inside a Channel Up pattern but lately with the 1D technicals neutral (RSI = 50.905, MACD = 0.560, ADX = 28.391). This is despite staying on high levels, finding support on the 1D MA50.
As long as this and the Inside HL trendline hold, we are bullish, aiming at the Inside HH (TP = 251.00). If the price crosses below however, it is very likely to see a 1D MA200 test. Don't buy though before the 1D RSI enters the 0.236 - 0.0 Fibonacci Zone, which has been the strongest buy signal when the last two HL levels of the Channel Up formed. As previously, we will again aim at the Inside HH (TP = 252.00).
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