Saturday, October 17, 2020

V stock: Visa - A fintech giant

Here is the article. 

Another stock from the Berkshire Hathaway stable is fintech behemoth Visa (V - Get Rating), a company that owns about 53% of the credit card network purchase volume in the U.S. which is also the world’s largest economy.

Visa is not a lender and just a payment facilitator making it relatively immune to economic cycles. However, in a recessionary environment consumer spending tapers off which will impact Visa’s top-line growth.

Visa has tremendous potential given the digital payment revolution is just starting in developing economies of Asia and Latin America. Visa is one of the fastest-growing stocks in Berkshire’s portfolio as analysts expect the company’s annual earnings to grow by 8.5% through 2023.

Visa recently pumped in $5 billion to acquire Plaid, another player in the fintech space, which shows it is not averse to big-ticket acquisitions.

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