Is Visa Stock a Buy Now?

Core Viewpoint - Visa faces emerging competition from retail giants Walmart and Amazon, which are exploring the launch of their own stablecoins, potentially threatening Visa's traditional payment network [1][4]. Visa's Position on Stablecoins - Visa has recognized the growing interest in stablecoins and has initiated a seven-day-a-week stablecoin settlement service, achieving over $200 million in cumulative stablecoin volume [4]. - The company is investing in the crypto space and has built a team of experts to navigate this evolving landscape [4]. Financial Performance - In fiscal Q2 2025, Visa reported a 9% revenue growth, generating $9.6 billion, while net income was $4.6 billion, reflecting a 2% year-over-year decline due to a $992 million litigation provision [8]. - Adjusted for special items, Visa's net income would have increased by 6% year-over-year to $5.4 billion [8]. Shareholder Returns - Visa has a strong capital return strategy, increasing its dividend for the 16th consecutive year, with a quarterly dividend of $0.59 per share, yielding 2.3% [9]. - The company has reduced its share count by 9.2% over the past three years and spent $4.5 billion on stock buybacks in the most recent quarter, with a new $30 billion buyback program approved [10]. Market Position and Valuation - Visa maintains a dominant position in the global payments industry, supported by its extensive network and regulatory expertise, which provides a strong competitive moat [12]. - Despite its strong fundamentals, Visa's stock is trading at 36 times earnings, indicating that much of the positive outlook may already be reflected in its current price [13]. Conclusion - Visa is well-positioned to adapt to the rise of stablecoins, but valuation concerns suggest that investors may prefer to hold rather than buy at the current price [15].