Is It Too Late to Buy Visa Stock?

Core Insights - Visa is the largest credit card network globally, with nearly 4.5 billion cards in circulation, representing over half of the global population [1][2] - The company's performance is closely tied to economic trends, benefiting from increased consumer spending during economic growth and reflecting downturns during recessions [3] Financial Performance - In the fiscal second quarter of 2024, Visa reported a revenue increase of 10% year over year to $8.8 billion, with earnings per share (EPS) rising 12% to $2.29 [4] - The company experienced a 16% year-over-year increase in cross-border volume, indicating a rebound in post-pandemic spending [4] Growth Opportunities - Visa estimates a $20 trillion global market opportunity in consumer payments, focusing on expanding its tap-to-pay business and targeting automated clearing house (ACH) payments [5] - The New Flows segment, which includes alternative payments like Visa Direct, presents a $200 trillion opportunity, with revenue increasing 14% year over year and Visa Direct transactions up 31% [6] - The value-added services segment, which includes merchant services like data analytics, saw a revenue increase of 23% year over year in Q2 [6] Market Position - Despite inflationary pressures on retail, Visa continues to perform well and is expected to maintain its market-beating stock performance [7]