$V - new all time highs break incoming. $320 PTV - Stock about to break all time highs again on daily time frame. Stock is looking strong on charts. looking for calls above $312.50 for a move towards $320. Stock is strong on indicators.
VD trade ideas
Visa Inc.Hi guys,
In this chart i Found a Demand Zone in Visa inc CHART for Positional entry,
Observed these Levels based on price action and Demand & Supply.
*Don't Take any trades based on this Picture.
... because this chart is for educational purpose only not for Buy or Sell Recommendation..
Thank you
VISA filling gap BEarishVISA looks like to fill the gap up opening it did on its earnings
It will probably retest the support of 292 to 296 area
At this point entries can be made to ride the long term bull trend of Visa
its a fundamentally strong stock which will benefit from rate cuts
Entry : 292-296
Stop loss : 270
Visa (V): Pullback Incoming After New All-Time HighsVisa ( NYSE:V ) has reached our anticipated wave 3 target, a significant milestone for this stock that has consistently delivered strong performance. Recently, regulators in the EU have begun probing Visa and MasterCard’s fees, assessing their impact on businesses. While this could pose some risks, Visa’s overall trajectory remains promising.
The stock has been setting new all-time highs consistently, but with the potential completion of wave ((v)) and wave 3, we are now looking for a pullback. This correction could offer a great opportunity to open new long positions. Our target range for the pullback is between $280 and $260, though the exact level remains uncertain. Before this, there could still be further upside, with a potential minor retracement between $311 and $325 that would support a bearish short-term outlook.
We are monitoring this closely and have alerts set to act when the time is right. Visa remains a long-term performer, but patience will be key to capitalizing on its next move.
V Visa Options Ahead of EarningsIf you haven`t bought V before the previous earnings:
Now analyzing the options chain and the chart patterns of V Visa prior to the earnings report this week,
I would consider purchasing the 282.5usd strike price Calls with
an expiration date of 2024-11-1,
for a premium of approximately $5.80.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Visa (V) heads up at $292.12 then 300.27: Golden fibs to top it?Visa re-testing Golden Genesis fib that has proven itself.
Last visit rejected hard, and now in violent orbits of it.
Just above is a Golden Covid (dashed) fib for back-stop.
$ 292.12 is the exact level of the Golden Genesis fib.
$ 300.27 is a Golden Covid fib above that will fight.
$ 285.28 is the first possible support below for SL.
=================================================
.
Visa stock new demand level and investment opportunity Visa stock continues to rally as expected creating new demand imbalances on the daily timeframe. There is a new one sitting at $285 per share. Waiting for the pullback before buying again.
Technical Analysis on Visa (V)Visa's stock ( V ) shows a clear long-term uptrend.
Following a decline in 2022, it regained its 2021 highs in early 2024, breaking through resistance and continuing its upward trend.
The stock reached new highs around the $290 area, then retraced, forming a bullish flag pattern, down to a support area near $250.
Currently, it is testing the highs again in the $290 area, reached via a gap up after positive earnings and revenue announcements. If it confirms a breakout above resistance, with a potential retest, the stock could continue its bullish trend.
VISA: Expecting Good Earnings In July 2024, V perfectly retraced to the high of July 2021 which provides us with 2 fib extension targets going into earnings tonight. PT 1 301, PT 314. The larger fib extension created by taking the high of July 2021 and the low of October 2022, gives us the stronger of the 2 targets - 301. Calls are cheap for this Friday's expiry.
VISA: 2 year Channel Up seeks the next bullish wave.Visa is on a neutral 1D technical outlook (RSI = 53.426, MACD = 2.190, ADX = 43.132) and just above neutrality levels on 1W (RSI = 56.042) as despite being supported by the 1W MA50, it has been rejected twice on the R1 level. That would have been concerning on any other occasion but this time it's not as we consider this similar to the November 2022 R1 pullback, which after being contained by the 1W MA50, it reversed to the 1.382 Fibonacci extension. The 1W RSI trading above its MA for 2 months now, is also similar to October-November 2022. Consequently, we turn bullish again, aiming for the 1.382 Fib (TP = 305.00).
See how our prior idea has worked out:
## If you like our free content follow our profile to get more daily ideas. ##
## Comments and likes are greatly appreciated. ##
The Payment Card Titan: Comparing Visa, Mastercard, and Amex◉ Abstract
The global credit card market is projected to grow from USD 559.18 billion in 2023 to USD 1,146.62 billion by 2033, driven by advancements in digital payment technologies, e-commerce growth, increased financial literacy, and urbanization, especially in Asia-Pacific.
Visa leads the market with a 38.73% share, followed by Mastercard and American Express. Visa and Mastercard operate primarily as payment networks, while American Express both issues cards and offers unique rewards. Financially, all three companies show strong revenue growth, with American Express yielding the highest ROI but also carrying significant debt.
Despite this debt, American Express appears undervalued based on financial ratios. Overall, while American Express presents an attractive investment opportunity, Visa and Mastercard also demonstrate solid fundamentals and growth potential for investors in the expanding credit card market.
Read the full analysis here . . .
◉ Introduction
The Global Credit Card Market Size was Valued at USD 559.18 Billion in 2023 and the Worldwide Credit Card Market Size is Expected to Reach USD 1146.62 Billion by 2033,
◉ Key Growth Drivers
● Digitalization and Technology: Advancements in payment technologies, including mobile wallets and contactless payments, enhance convenience and security.
● E-Commerce Growth: The rise of online shopping increases demand for credit card payments, as consumers prefer their ease and safety.
● Financial Literacy: Improved understanding of financial products encourages more consumers, especially in developing regions, to adopt credit cards.
● Urbanization: Growing urban populations, particularly in Asia-Pacific, lead to greater access to banking services and credit facilities.
● Emerging Markets: Rising disposable incomes in developing countries drive new credit card accounts as financial institutions expand their offerings.
● Consumer Convenience: The preference for quick and easy payment methods boosts credit card usage over cash transactions.
● Rewards Programs: Attractive loyalty programs incentivize consumers to use credit cards for everyday purchases.
● Regulatory Support: Government initiatives promoting cashless transactions foster a favourable environment for credit card adoption.
◉ Market Overview
As of 2022, the global credit card market was primarily led by Visa, which held a 38.73% share of the worldwide payment volume. Mastercard followed with a 24% market share, while American Express (Amex) accounted for 4.61%. Notably, China UnionPay is also a major player in this space, surpassing Amex in terms of purchase volume
◉ Key Players in the Payment Card Industry
1. Visa NYSE:V
● Market Cap: $552 B
● Market Share: 38.73%
● Business Model: Payment network facilitating transactions between consumers, businesses, banks, and governments globally.
● Card Issuance: Does not issue cards itself.
● Global Reach: Extensive acceptance network across more than 200 countries.
2. Mastercard NYSE:MA
● Market Cap: $474 B
● Market Share: 24%
● Business Model: Payment processor and network partnering with banks to offer various card products.
● Card Issuance: Does not issue cards itself.
● Global Reach: Broad acceptance worldwide with diverse products catering to different consumer needs.
3. American Express NYSE:AXP
● Market Cap: $203 B
● Market Share: 4.61%
● Business Model: Card issuer and payment network offering unique benefits and rewards directly to cardholders.
● Card Issuance: Issues its own cards.
● Global Reach: High acceptance rate in the US (99% of merchants), lower in Europe and Asia due to higher transaction fees.
◉ Technical Aspects
● From a technical perspective, there's a notable similarity among the three stocks: each is exhibiting strong bullish momentum, consistently achieving higher highs and higher lows.
● All three stocks have formed a Rounding Bottom pattern, and after breaking out, their prices have climbed to new heights.
● While Mastercard and American Express are currently trading at their all-time highs, Visa is positioned just below its peak.
◉ Relative Strength
The chart vividly demonstrates that American Express has excelled remarkably, achieving a return of nearly 85%, whereas Mastercard and Visa have delivered returns of 28% and 20%, respectively.
◉ Revenue & Profit Analysis
1. Visa
● Year-over-Year
➖ In FY23, Visa achieved a remarkable revenue increase of 11.4%, reaching $32.7 billion, up from $29.3 billion in FY22.
➖ The EBITDA for FY23 also saw a significant rise, totalling $22.9 billion compared to $20.6 billion in FY22.
● Quarter-over-Quarter
➖ In the latest June quarter, Visa's revenue rose to $8.9 billion, slightly surpassing the $8.8 billion reported in March 2024. This reflects a year-over-year growth of nearly 9.5% from $8.1 billion in the same quarter last year.
➖ The EBITDA for the most recent June quarter reached $6.2 billion, indicating an almost 9% increase from $5.7 billion in the same quarter last year.
➖ In June, the diluted EPS saw a modest rise, climbing to $9.35 (LTM) from $8.94 (LTM) in March 2024, which represents a notable year-over-year increase of 18.6% from $30.3 (LTM).
2. Mastercard
● Year-over-Year
➖ Mastercard's revenue for FY23 experienced a robust growth of 12.9%, reaching $25.1 billion, up from $22.2 billion in FY22.
➖ The EBITDA for FY23 also increased, reporting $22.9 billion, up from $20.6 billion in FY22.
● Quarter-over-Quarter
➖ In the recent June quarter, Mastercard's revenue climbed to $7.0 billion, compared to $6.3 billion in March 2024. Year-over-year, this marks an increase of nearly 11% from $6.3 billion in the same quarter last year.
➖ The EBITDA for the latest June quarter was $4.4 billion, reflecting an almost 9% rise from $3.9 billion in March 2024.
➖ In June, the diluted EPS saw a slight increase, rising to $13.08 (LTM) from $12.59 (LTM) in March 2024, which is a significant year-over-year increase of 23% from $10.67 (LTM).
3. American Express
● Year-over-Year
➖ For the fiscal year 2023, the company experienced a remarkable revenue growth of 9.7%, reaching an impressive $55.6 billion, compared to $50.7 billion in fiscal year 2022.
➖ Additionally, operating income showed a positive trajectory, with fiscal year 2023 reporting $10.8 billion, an increase from $10 billion in the previous fiscal year.
● Quarter-over-Quarter
➖ In the latest June quarter, revenue continued its upward trend, totalling $15.1 billion, up from $14.5 billion in March 2024. This represents a significant year-over-year growth of nearly 8.7% from $13.9 billion in the June quarter of the previous year.
➖ Furthermore, operating income for the June quarter reached $3.2 billion, marking a substantial increase of almost 19% from $2.7 billion in the same quarter last year.
➖ The diluted earnings per share (EPS) also saw a remarkable rise in June, climbing to $13.39 (LTM) from $12.14 (LTM) in March 2024, which is a significant jump of 36% compared to $9.83 (LTM) in the same quarter last year.
◉ Valuation
● P/E Ratio
➖ Visa stands at a P/E ratio of 29.1x.
➖ Mastercard is at a P/E ratio of 38.7x.
➖ American Express shows a P/E ratio of 20.6x.
➖ When we analyze these figures, it becomes clear that American Express appears significantly undervalued compared to its peers.
● P/B Ratio
➖ Visa has a P/B ratio of 14.3x.
➖ Mastercard's P/B ratio is a staggering 64x.
➖ American Express, however, has a P/B ratio of just 6.8x.
This further reinforces the notion that American Express is currently undervalued in the market.
● PEG Ratio
➖ Visa's PEG ratio is 1.56.
➖ Mastercard's PEG stands at 1.71.
➖ American Express shines with a PEG ratio of just 0.56.
➖ This metric also highlights American Express's superior value proposition compared to its peers.
◉ Cash Flow Analysis
➖ Visa's operating cash flow for the fiscal year 2023 has risen to $20.8 billion, marking a notable increase from $18.8 billion in fiscal year 2022.
➖ Similarly, Mastercard has experienced growth in its operating cash flow, which has reached $12 billion in fiscal year 2023, up from $11.2 billion in the previous year.
➖ In contrast, American Express has reported a significant decline in its operating cash flow, decreasing from $21.1 billion in fiscal year 2022 to $18.6 billion in fiscal year 2023.
◉ Debt Analysis
1. Visa
● Debt to Equity Ratio: Approximately 0.52 as of June 2024, indicating a stable financial structure with moderate leverage.
● Total Debt: About $20.6 billion.
● Total Shareholder Equity: $39.7 billion.
● Analysis: Visa's ratio reflects a cautious debt approach, balancing equity and debt financing, with net debt well-supported by operating cash flow, enhancing financial stability.
2. Mastercard
● Debt to Equity Ratio: Approximately 2.10, indicating a higher reliance on debt compared to Visa 5.
● Total Debt: $15.6 billion.
● Total Shareholder Equity: $7.5 billion.
● Analysis: Mastercard’s higher ratio suggests it is more aggressive in leveraging debt for growth initiatives compared to Visa. This strategy may lead to greater volatility in earnings due to interest obligations.
3. American Express
● Debt to Equity Ratio: Approximately 1.80, indicating a significant level of debt relative to equity 5.
● Total Debt: $53.2 billion.
● Total Shareholder Equity: $29.54 billion.
● Analysis: American Express’s ratio shows a strong reliance on debt financing, which can enhance growth but also introduces risks related to interest payments and market conditions.
◉ Top Shareholders
1. Visa
● The Vanguard Group has notably boosted its investment in Visa, now commanding a remarkable 7.52% share, reflecting a 0.62% increase since the close of the March quarter.
● In contrast, Blackrock maintains a stake of approximately 6.7% in the firm.
2. Mastercard
● When it comes to Mastercard, Vanguard has also made strides, raising its ownership to an impressive 8.27%, which is a 1.02% uptick since the end of March.
● Blackrock, on the other hand, has a substantial 7.56% stake, showing a 1.17% growth from the same period.
3. American Express
● As for American Express, Warren Buffet’s Berkshire Hathaway boasts a significant 21.3% stake in the company.
● Meanwhile, Vanguard holds a 6.36% interest, while Blackrock has a 5.89% share.
◉ Conclusion
After a thorough analysis of both technical and financial indicators, we find that American Express offers a compelling valuation opportunity that is likely to attract investors. Nonetheless, it is important to recognize the significant debt load the company carries, a concern that also extends to Mastercard.
● From a technical standpoint, the chart for American Express seems to be stretched thin. Investors might want to hold off for a corrective dip to secure a more advantageous entry point.
● Mastercard's financial results reflect solid performance, though it carries a high level of debt. The technical chart indicates a slight overvaluation. Savvy investors might look to build their positions during times of price stabilization.
● Visa presents a well-rounded synergy between its technical and fundamental metrics. Its chart reveals a remarkable rebound, approaching previous all-time highs after a notable decline. The company's valuation and growth potential make it a compelling investment choice.
Visa Soars! All Profit Targets Hit in 15-Minute Long TradeTechnical Analysis: Visa – 15-Minute Timeframe (Long Trade)
Visa presented a strong bullish opportunity with an entry at 275.92. The trade has been highly successful, with all profit targets hit, showcasing the strength of the uptrend.
Key Levels
Entry: 275.92 – The long position was initiated after confirming a strong bullish signal.
Stop-Loss (SL): 274.59 – Positioned below support to manage risk and protect against potential downside.
Take Profit 1 (TP1): 277.57 – Successfully hit, confirming the initial bullish momentum.
Take Profit 2 (TP2): 280.24 – Further upside pressure pushed the price to this level.
Take Profit 3 (TP3): 282.91 – The bullish trend carried the price to this target.
Take Profit 4 (TP4): 284.56 – The final target, marking a complete and highly profitable trade.
Trend Analysis
The price remained well above the Risological Dotted trendline, confirming a strong uptrend throughout the trade. The steady buying pressure helped achieve all targets, indicating robust bullish momentum.
The long trade on Visa has concluded successfully, hitting all targets, with the final target at 284.56. This trade exemplifies the power of identifying strong trends and riding the momentum to maximize profits.
Visa Stock:The 3 Step Rocket Booster Strategy Yesterday Visa was trending on Twitter like
crazy. According to a course I took from Tim Sykes
Called "Traders Checklist Guide"
-
Am not sure which video number it was
but down the line in that course.One of the
students of that course shared the importance of
Taking note of stocks that trend on Twitter
This trending news on Twitter
or which is now called X
Shows you a confirmation signal which doesn't always
happen but when it does you need to be very aware of it
Now am going to share with you my #1 Trading
strategy called The Rocket Booster Strategy
The Rocket Booster Strategy Has 3 Steps:
#1-The price has to be above the 50 EMA
#2-The price has to be above the 200 EMA
#3-The 50 EMA should cross above the 200 EMA
If this happens then it means the price
of this stock NYSE:V
is in an uptrend.
-
If you want to learn more rocket boost this content
Disclaimer: Trading is risky you will lose
money wether you like it or not
please learn risk management
and profit taking strategies.
Visa Unveils the Visa Tokenized Asset (VTAP) Platform A Bridge Between Fiat and Blockchain
Visa (NYSE: NYSE:V ), the global leader in digital payments, has announced a major step forward in the digital asset space with the launch of its Visa Tokenized Asset Platform (VTAP). Designed to bridge traditional fiat currencies with blockchain technology, VTAP aims to empower financial institutions by enabling them to issue and manage fiat-backed tokens on blockchain networks. As Visa continues its 60-year history of pushing the boundaries of digital payments, this new innovation is poised to set a new standard in how fiat currencies interact with the blockchain.
Revolutionizing Payments Through Tokenization
Visa’s new VTAP platform provides banks and financial institutions the tools to mint, burn, and transfer fiat-backed tokens in a secure and seamless environment. By integrating fiat currencies on blockchain networks, Visa is helping to expand the use cases of digital assets while also leveraging its expertise in tokenization and smart contracts. Banks can now use VTAP to automate processes, like issuing complex lines of credit and digitizing traditional workflows using blockchain technology.
Visa’s extensive global network, which spans over 15,000 financial institutions across 200 countries, gives the company a unique advantage in rolling out this blockchain-based solution on a massive scale. Vanessa Colella, Visa's Global Head of Innovation and Digital Partnerships, noted that Visa’s foray into tokenization will allow banks to “integrate blockchain technologies into their operations.” This development opens the door for widespread adoption of tokenized real-world assets, such as tokenized deposits and stablecoins, which can streamline existing financial processes and facilitate real-time payments.
Moreover, the VTAP platform emphasizes interoperability across both permissioned and public blockchains. With a single API connection, banks can interact with partners and clients across multiple blockchain ecosystems. This feature ensures that Visa’s tokenized asset ecosystem remains versatile and future-proof, allowing it to interact with various digital assets securely.
BBVA, a major financial institution, has already been experimenting with VTAP's sandbox functionalities, aiming to launch a live pilot in 2025. Their collaboration with Visa signifies the growing interest in tokenized solutions, as financial institutions look to blockchain to digitize their operations.
Technical Outlook
Despite the groundbreaking announcement, Visa’s stock ( NYSE:V ) has seen a slight dip of 0.29%, trading at lower levels. However, this short-term downturn may not overshadow the long-term potential.
The stock is currently trading with a Relative Strength Index (RSI) of 48.21, suggesting that it sits at a pivotal level. The RSI being close to 50 indicates indecision in the market—neither overbought nor oversold. Visa is in the process of recovering from a short-term falling trend, which began earlier this year. However, external factors have tempered this recovery, keeping momentum at bay.
From a technical standpoint, Visa’s stock remains above key moving averages, which is a positive signal that investors should keep in mind. A sustained position above these averages indicates that the stock is holding firm in the broader uptrend despite recent weakness.
Visa's chart also suggests the stock is poised for a breakout, with analysts keeping an eye on key resistance levels. If Visa (NYSE: NYSE:V ) manages to overcome its current price barriers, the stock could regain upward momentum as investors digest the significance of the VTAP platform and its implications for Visa’s future growth in the digital asset space.
What This Means for Investors
For investors, Visa’s introduction of VTAP signals a long-term opportunity in the blockchain and digital asset space. Visa (NYSE: NYSE:V ) is positioning itself as a leader not just in traditional payments, but also in the future of tokenized finance. The company’s focus on interoperability, programmability, and easy integration will likely attract financial institutions looking to innovate.
The slight dip in Visa’s stock price may represent an attractive entry point for those who see the potential for long-term growth, especially with the ongoing development of blockchain-based solutions. Investors looking for exposure to both traditional financial markets and blockchain technologies should keep a close eye on Visa (NYSE: NYSE:V ) as it pioneers new paths in tokenization.
In conclusion, Visa’s VTAP is a game-changing solution that cements the company’s leadership in the digital payments sector. With a strong foundation of global partnerships and a forward-looking approach to blockchain technology, Visa is set to redefine how fiat and digital assets interact, offering an exciting opportunity for both financial institutions and investors alike.
Visa Stock:The Rise Of "The 13 EMA System"This system is something
i did not think I would develop
-
so successfully..
right now am still watching it..
and so after about a week or 2
-
Am going to come back and review this trading
journal of ideas to check
to see if it will perform well
-
But for now, I must honestly say
It is something that am honestly
looking forward to.
-
These past few days I kept thinking
about how I could make money from
trading.
-
Last night before hitting the bed
I thought to myself,
"I need to make that one big score"
-
and i think this system will be that
big score for me. But again I need to give it at least
2 weeks.. Join me on the journey..
-
Notice that the MACD Histogram is red?
This shows you that the price of
-
this stock NYSE:V is undervalued
which means it's cheap
-
relative to price history,
and could be a good buy.
-
Rocket boost this content to learn more..
-
Disclaimer: Trading is risky you will lose money
whether you like it or not please learn risk management and
profit taking strategies.
Visa Stock Swing Trade Idea off a weekly demand levelIn a world where financial giants constantly jockey for position, Visa has long stood as a titan in the credit card arena. But with recent headlines buzzing about the Department of Justice's lawsuit against it, you might wonder: Is this the beginning of the end for this stalwart brand? Fear not! While challenges loom, Visa’s resilience and strategic prowess depict enduring strength and stability.
There is a strong weekly demand level that has just gained control. We expect Visa stock to rally in the following days. Let's see what happens.
Visa Faces Debit Card Antitrust LawsuitThe U.S. Department of Justice has filed a lawsuit against Visa, accusing it of monopolizing the debit card market and violating antitrust laws. Visa, which processes more than 60% of debit transactions in the U.S., has been singled out for entering into agreements that eliminate competition and charging high fees to merchants, generating approximately $7 billion annually in fees.
The lawsuit seeks to curb pricing structures that hinder competition and prevent Visa from paying potential competitors not to launch products that challenge its dominance. In response, Visa has denied the allegations, arguing that competition in the debit market is thriving and that it will vigorously contest the claims.This case is part of the US government's efforts to control rising consumer prices, especially with regard to the fees that merchants pass on to their customers. Following the announcement of the lawsuit, Visa shares fell by 5.5%.
Financially, Visa has shown solvency in its recent results. Despite a negative first quarter with declines in EBIT (-2.91%) and EBITDA (-2.76%), the company recovered ground in the second quarter, showing growth in total revenue (+2.91%) and EBITDA (+3.04%). In its most recent report, Visa announced a 13% increase in earnings, reaching almost $10 billion, with revenue of $11.3 billion, up 8% from the previous half-year. In the first quarter, Ryan McInerney, CEO of Visa, mentioned that overall payment volume had grown 8% in the U.S. and 16% internationally. In addition, Visa had set aside $424 million to settle a class action lawsuit related to anti-competitive practices, which affected its results in the first quarter. These allegations have resurfaced as we discussed and we will have to see how the lawsuit evolves between now and the end of the year.
Yesterday's earnings report marked a new milestone for us by increasing earnings per share (EPS) by 12% following its commitment to AI growth. Net revenues of $8.9 billion, global growth of 7%, and payment volume up 5% in the US and 10% internationally. Visa Direct transactions soared 41 per cent to $2.6 billion, and new flow revenue grew 18 per cent year-on-year. Its strategic partnership renewals and expansions and value-added service enhancements, as well as investment in AI and its improved payments ecosystem and fraud reduction and sales momentum show the expectation of low double-digit revenue EPS growth and consistent payment volumes for the final quarter of the year, with a slight decline in cross-border transactions. Visa intends to take advantage of the $20 trillion global consumer payments opportunity by focusing its expansion on the pursuit of acceptance, e-commerce and innovation. On the negative side, as mentioned above, the rejection of the class action settlement by the injunctive relief class action forces Visa to seek an alternative resolution. There is also a perceived reduction in credit growth compared to debit, although this is not considered by Visa to be indicative of economic stress on the consumer. However, Visa is keeping a watchful eye on trends.
On a technical level Visa has moved in a sideways channel and with a positive Balance Sheet already yesterday started to form what could be a bullish pullback figure, this could take the company out of the current highs if the firm manages to successfully resolve its antitrust lawsuit.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Visa Stock Slips 4.15% Amid DOJ Antitrust Suit Visa Inc. (NYSE: NYSE:V ), the world's largest payment processing company, has come under pressure as reports surface that the U.S. Department of Justice (DOJ) is preparing to file an antitrust lawsuit against the company. The allegations center around monopolistic practices in the U.S. debit card market, accusing Visa of using its dominant position to hinder competitors. In the wake of this news, Visa's shares fell 3.7% early Tuesday, marking a significant drop for the payment processor. Let’s dive into the key fundamental and technical aspects driving Visa's recent performance and future outlook.
Antitrust Concerns Cloud the Horizon
The DOJ's anticipated lawsuit is based on accusations that Visa (NYSE: NYSE:V ) has been using anti-competitive tactics such as exclusive agreements and penalties for customers using other payment processors. These tactics, according to the DOJ, have allowed Visa to maintain its dominant position in the U.S. debit card market, preventing competitors from gaining market share. This isn't the first time Visa has come under regulatory scrutiny; the DOJ previously blocked a $5.3 billion merger between Visa and fintech company Plaid in 2021, citing antitrust concerns.
Visa (NYSE: NYSE:V ) has also faced heightened scrutiny alongside its rival, Mastercard (MA), as both companies are often accused of operating as a duopoly in the payments industry. Recent reports suggest that Visa's volume-based discounts for merchants are a point of contention, with regulators arguing that these discounts create barriers for new entrants to compete effectively, keeping prices artificially high.
Despite these challenges, some analysts believe that the long-term financial impact on Visa's revenue may be limited. KBW brokerage estimates that Visa's U.S. debit business accounts for around 10% of the company’s total revenue. While the lawsuit could drag on for years, analysts are not expecting a significant blow to Visa’s earnings, although there may be volatility in the stock price during the legal proceedings.
Technical Analysis: A Slippery Slope for Visa's Stock
Visa's stock has been in a rising trend pattern for the better part of 2024, experiencing regular highs and lows as it steadily ascended. However, with the DOJ lawsuit looming, Visa’s stock experienced a sharp decline of over 4% during Tuesday’s trading, dipping to $278.04. This drop represents a crucial turning point as the stock nears a key support zone.
From a technical standpoint, Visa’s current price action shows the stock regressing towards the $255 pivot level, which previously acted as resistance in December 2023. This support level is critical, as breaking below it could lead to further declines. However, if the stock holds above this level, we could see a rebound in the coming weeks, especially if the market shifts focus away from the lawsuit and back to Visa's strong fundamentals.
The stock's Relative Strength Index (RSI) also provides insight into its near-term trajectory. Currently hovering at 46, the RSI suggests that Visa (NYSE: NYSE:V ) is approaching oversold territory. While not yet indicating a reversal, this level is crucial to watch, as a dip below 40 could signal further downside momentum. Conversely, an RSI rebound could spark a short-term rally, particularly if Visa’s fundamentals stabilize.
What Lies Ahead for Visa?
While Visa (NYSE: NYSE:V ) has encountered regulatory hurdles in the past, the payments giant continues to be a powerhouse in the global payments industry. Its ability to navigate legal challenges, coupled with its dominant market position, ensures that Visa (NYSE: NYSE:V ) remains a significant player in the long term. Additionally, Visa’s aggressive stock buyback program and global expansion into digital payments and fintech partnerships should cushion the blow from the ongoing antitrust investigation.
However, the uncertainty surrounding the DOJ lawsuit may weigh on the stock in the short to medium term, as investors brace for potential headlines and prolonged legal battles. Visa's earnings are not expected to take a substantial hit from its U.S. debit operations, but the negative sentiment from the lawsuit could cause the stock to fluctuate in the months ahead.
Conclusion
Visa’s stock is at a critical juncture, facing headwinds. The DOJ’s antitrust lawsuit has sparked concern among investors, but the long-term fundamentals of the company remain intact. From a technical perspective, all eyes will be on the $255 support zone, with the potential for a short-term rebound if Visa can hold above this level. Nonetheless, the legal proceedings are likely to introduce volatility, making Visa (NYSE: NYSE:V ) a stock to watch closely in the coming weeks.
VISA 1h time frame analysishi traders
Let's have a look at VISA on 1h time frame.
We can see a bearish divergence on 1h time frame.
Moreover, the RSI is very overbought on 1D time frame. It makes sense to expect the pullback now.
The setup-up is shown on the chart!
Looking for a potential breakout of all time highs on VISA!🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
Visa (V): Chart Analysis Update We hope you remember our previous analysis on Visa. The price reacted to our target area and has since increased following the latest drop. We now believe that Wave ((iv)) is complete and that we are currently in Wave ((v)). A level around $305 or even slightly higher should be possible for Visa before breaking the current local low at $253.
Once this Wave ((v)) is complete, concluding the overarching Wave 3, we plan to send out a limit for new entries.
Flag Formation Break out on VisaFlag Formation Break out on Visa
You can check Fundamental ratio indicators from my page
