first of let me say this, the volume today was about 40 million or so. AH volume yesterday was around 3million who do u think was buying the 3 million shares at around $ 70 something????
there are going to be buyers and sellers in every situation. IF any company has an earnings that is very good or bad, the volume will be much higher then normal after hours. thats common sence He said that there was "classic manipulation" after hours yesterday. But Visa had a weak earnings and guidance report (after doubling in 6 weeks). THUS it was down somthing like 7% after hours, and it has to be some conspiracy theory or some crap like that i hear all the time on ET Cant we agree, A) IF a company that has doubled in 6 weeks has ok earings the it should be down? B)If V down and a company that does the same thing just kills there earnings report, then Visa is going to go up in value?
What is proves is that buy & hold for quality, high growth, strong momentum, large cap companies works while trying to time the market doesn't.
It won't likely be an $80 stock for long. They don't have much upside in the market, and with MA competing will have margin pressure down the road to offset their higher transaction volumes as developing world migrates to credit. More interestingly, now that this isn't a collective bank asset, I assume VISA will be more pressured to 'compete' by price. 11-15% growth doesn't justify a 40 multiple. Sorry. Its a good short for a recession-induced bear. If you want growth with some upside, buy some SIGM or ISRG ... this is an overpumped dog. I'll gladly buy this stock at $30.
I really dont pump stocks but you understand this is a true duopoly there the plays have been competing for decades? Dont forget consumers are not going to make a choice to use a Visa card over a mastercard over price, since the retailers pay the fees. so they wont compete on price. Good luck with your shorts
people using credit cards like they are going out of style, no one using cash, everyone using credit card, it may bold well for transactions for MA but in the long term people are getting into INCREDIBLE debt, get ready for Trillions worth of Credit card debt thanks to SOARING FOOD AND ENERGY PRICES.