We recently published 9 Stocks Jim Cramer Talked About.  Mastercard Incorporated (NYSE:MA) is one of the stocks on Jim Cramer talked about. Mastercard Incorporated (NYSE:MA)’s shares are down by 2.8% year-to-date. The shares, like those of peer companies Visa and American Express, have struggled after President Trump suggested capping credit card interest rates at 10%. However, after the President’s announcement, TD Cowen raised Mastercard Incorporated (NYSE:MA)’s share price target to $668 from $654 and ...

Core Viewpoint - President Trump's unexpected request for credit card companies to set a cap on interest rates at 10% could significantly impact the profitability of the financial sector, leading to a decline in financial stocks and raising concerns among bank executives during earnings calls [1][4]. Financial Sector Impact - The proposed interest rate cap is half of the current average rate on outstanding balances, potentially erasing billions in profits for credit card issuers [1]. - Major banks such as Capital One (COF.US), JPMorgan Chase (JPM.US), and American Express (AXP.US) experienced significant stock declines following the announcement [1]. - Analysts from KBW indicated that if the policy is implemented, it would severely weaken the profitability of credit card issuers and could trigger economic repercussions [4]. Legislative Developments - Trump has called for Congressional support for the Credit Card Competition Act, which targets the nearly $200 billion in swipe fees charged by banks and payment companies, negatively affecting stocks of Visa (V.US) and Mastercard (MA.US) [4]. - Some analysts doubt the feasibility of the interest rate cap, suggesting that the probability of it being enacted is less than 20% due to the lack of legislative support [4]. Broader Economic Effects - Bank executives have warned that the interest rate cap could lead to a significant economic slowdown and push consumers towards unregulated lending sources [5]. - The proposed changes are expected to have ripple effects beyond the financial sector, impacting industries such as airlines and retail, which rely on partnerships with credit card companies for substantial revenue [7]. - Airlines like Delta (DAL.US) and United Airlines (UAL.US) saw stock declines, as did retailers like Macy's (M.US) and Kohl's (KSS.US), due to concerns over the potential impact of the proposed legislation [7].

Financial Sector - The financial sector experienced a significant downturn following President Trump's announcement of a one-year cap of 10% on credit card interest rates, effective January 20, 2026, aimed at protecting consumers from high rates averaging around 20% [2][3] - Major financial institutions like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo saw their stock prices drop significantly, with JPMorgan's shares falling 4.2% to $310.90 despite better-than-expected earnings [3][4] - Consumer finance firms specializing in credit cards faced even steeper declines, with drops between 8% and 11% for companies like Synchrony Financial and Capital One, while Visa and Mastercard also saw declines of over 2% [4] Semiconductor Industry - A trade deal between the U.S. and Taiwan resulted in a reduction of tariffs on Taiwanese goods from 20% to 15%, in exchange for Taiwan's commitment to invest $250 billion in U.S. semiconductor and AI sectors [6][7] - Taiwan Semiconductor Manufacturing Co. reported a 35% year-over-year increase in fourth-quarter profit, leading to a 4.5% surge in its U.S.-listed shares, with trading volume increasing by 159% [7] - Despite a new 25% tariff on specific high-end AI chips, Nvidia's stock rebounded by around 3% due to positive earnings from TSMC and exemptions for companies investing in America [8][9] Healthcare Sector - President Trump introduced "The Great Healthcare Plan" aimed at lowering prescription drug prices and insurance premiums, but the lack of details and the need for Congressional approval left the market skeptical [10] - Some healthcare stocks like UnitedHealth Group and Cigna saw modest gains, but the overall market impact was minimal due to concerns over rising premium costs for millions of Americans [10] Geopolitical Developments - President Trump's announcement of a "Board of Peace" in Gaza and withdrawal from 66 global organizations had little immediate market impact, overshadowed by economic news [11] - Oil prices dropped approximately 5% following Trump's de-escalation of military threats against Iran, indicating a positive market reaction to reduced geopolitical tensions [11] Market Volatility - The week illustrated the unpredictable nature of the market under Trump's administration, characterized by sudden policy announcements and immediate market reactions, creating a challenging environment for investors [12]

I hold a Master's in Accounting, am a small business owner, and am an assistant investing educator for beginning and intermediate individual investors. My investing analysis focus is on identifying and developing deep knowledge of great businesses. I have helped manage businesses, spend most of my extra time learning about investing and finance, and have been investing in the stock market for three years with a long-term investment focus. I do not consider myself an expert in stock analysis, but I seek to p ...

Visa, Mastercard and Revolut lost a fight over a proposed transaction fee cap in the United Kingdom.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The High Court in London ruled Thursday (Jan. 15) that the U.K.’s ...

数字银行Revolut、Visa（Visa）和万事达（Mastercard）在英国发起的一项诉讼以失败告终，该诉讼针 对的是一项拟议中的国际交易手续费监管上限政策。 伦敦高等法院于周四作出裁定，英国支付系统监管局（PSR）有权对跨境转接手续费设定价格上限。这 类手续费由Visa和万事达向银行收取，自英国脱欧以来，其金额已出现显著上涨。 尽管欧洲各地的金融科技公司及银行开展了密集游说，此项裁定仍得以落地。2025年，Visa与Revolut曾 对该监管机构提起司法审查，称英国支付系统监管局越权行事，且相关举措会损害市场竞争。 值得注意的是，此前美国总统唐纳德·特朗普呼吁将信用卡利率限制在10%以内，此举引发了银行业与 支付行业的强烈不满，而本次裁定恰好在该事件发生数日后出炉。 截至发稿，Visa、Revolut和万事达均未就周四的裁定结果回应置评请求。 2023年，英国支付系统监管局发现，英国脱欧后跨境在线支付转接手续费涨幅超过五倍，遂提议为这类 手续费设定价格上限。 目前，该价格上限的具体标准及实施日期尚未由英国支付系统监管局敲定。英国政府已决定撤销该监管 机构，并将其职能并入英国金融行为监管局（FCA）。 ...

Mastercard , Visa and British fintech Revolut on Thursday lost a legal challenge to Britain's payments regulator over its plans to introduce a cap on cross-border card fees. ...

Core Viewpoint - Wall Street's bull market continues with significant growth potential in select companies, despite the overall market being historically expensive [1][2][3] Group 1: Market Overview - The S&P 500 index increased by 16% in 2025, marking three consecutive years of at least 15% growth [1] - Historical trends indicate that the market tends to decline by 20% or more when it becomes expensive, as it currently is [2] Group 2: Investment Opportunities - Growth companies are identified as safe investment options for 2026, despite the market's high valuation [3] Group 3: Visa and Mastercard - Visa and Mastercard are highlighted as top growth stocks due to their focus on payment processing rather than lending, making them resilient during economic downturns [4][5] - Visa's cross-border payment volume increased by 13% in fiscal 2025, while Mastercard's grew by 15%, indicating strong international growth potential [9] Group 4: Pinterest - Pinterest's global monthly active users reached 600 million, with a 5% increase in average revenue per user (ARPU) during the September quarter [10][11][12] - The company has a strong balance sheet with $2.67 billion in cash and no debt, representing nearly 15% of its market cap [13] Group 5: Okta - Okta is positioned as a key player in cybersecurity, with a 17% growth in remaining performance obligations, indicating strong future revenue potential [18] - The company's forward P/E ratio is near an all-time low, suggesting an attractive valuation for investors [19] Group 6: Meta Platforms - Meta Platforms boasts an average of 3.54 billion daily active users across its apps, allowing it to command premium ad prices [22] - The company has $44.5 billion in cash and generated $79.6 billion in net cash from operations in the first nine months of 2025, providing ample resources for growth initiatives [24]

Core Viewpoint - Credit card stocks are experiencing a decline following President Trump's criticism of the industry regarding high interest rates and fees, alongside his proposal for a cap on credit card interest rates at 10% and support for the Credit Card Competition Act [2][3]. Group 1: Market Reaction - Shares of Visa and American Express have dropped 7% and 5% respectively since the beginning of the week, making them among the worst performers in the Dow Jones Industrial Average, while Mastercard has seen a decline of about 5% [4]. - Analysts from William Blair and Citigroup express confidence that the long-term impact on credit card stocks will be limited, suggesting that historical trends indicate buying during sell-offs related to potential business model changes has been beneficial for investors [5][9]. Group 2: Legislative Context - The Credit Card Competition Act aims to require large banks to enable at least two payment networks for credit cards, with only one being Visa or Mastercard, potentially challenging the dominance of these networks [3]. - The proposed interest rate cap and network reform have raised doubts among experts regarding their implementation by Congress or the Trump administration, but the market has historically overestimated the financial impact of such reforms [5]. Group 3: Historical Performance - Following the enactment of the Durbin Amendment, which capped debit card transaction fees, Visa and Mastercard stocks rose significantly, with respective increases of 1,700% and 2,600% over the past 15 years, outperforming the S&P 500's 550% return during the same period [10]. - Analysts note that despite the requirement for two unaffiliated networks on debit cards, interchange rates did not decrease, suggesting that Visa and Mastercard could similarly adapt if credit card regulations change [8].

Core Insights - Mastercard is enhancing its focus on incentive-driven payments by launching category-specific prepaid rewards cards, namely the Drive Prepaid Card and Grocery Prepaid Card, aimed at fuel, EV charging, and grocery spending [1][8] - This strategic shift indicates a move away from generic prepaid solutions towards targeted, purpose-driven spending that aligns with consumer needs [1][8] Strategic Opportunities - The initiative reflects a broader trend where businesses are increasingly organizing their spending on employee recognition, loyalty, and promotional programs, leading to more consistent incentive and rewards spending [2] - By linking rewards to everyday categories, Mastercard aims to improve redemption rates and stabilize transaction flows on its network [2] Differentiation Factors - Routine expenses such as fuel, EV charging, and groceries create frequent engagement opportunities, making incentive-driven prepaid cards more attractive compared to discretionary rewards [3] - Features like built-in category controls, options for physical and digital cards, and compatibility with mobile wallets support Mastercard's strategy for scalable and compliant commercial payments [3] Long-term Growth Potential - Over time, the adoption of category-specific rewards could turn incentive spending into a reliable growth driver for Mastercard, enhancing program control and ease of deployment [4] - Strengthening relationships with enterprises through these initiatives can further embed Mastercard's network within incentive and reward frameworks [4] Competitive Landscape - Competitors like Visa and American Express are also active in the rewards space, with Visa focusing on co-branded cards and loyalty programs, while American Express emphasizes premium rewards and high-value experiences [5][6] Financial Performance - Over the past year, Mastercard's shares have increased by 4.3%, contrasting with a 12% decline in the industry [7] - The company currently trades at a forward price-to-earnings ratio of 28.46, which is above the industry average of 19.86 [10] - The Zacks Consensus Estimate for Mastercard's 2025 earnings suggests a growth of 12.5% compared to the previous year [12]