Core Insights - Visa's earnings growth may slow, but it is still positioned to deliver better returns than the S&P 500 by potentially reaching a $1 trillion market cap by 2030 [1][15] Company Overview - Visa operates a simple and effective business model, generating revenue from transaction volume and processed transactions, making it a reliable long-term investment [3][5] - Unlike American Express, Visa collaborates with financial institutions to issue cards, resulting in higher margins and lower credit risk [4] Financial Performance - In the latest fiscal year ending September 30, Visa reported an 11% increase in net revenue, 8% in payments volume, 10% in processed transactions, and a 14% rise in non-GAAP EPS [5] - Visa's non-GAAP EPS only declined by 7% during the pandemic, showcasing the stability of its business model compared to more cyclical financial sectors [7] Market Position and Valuation - Visa's current market cap is approximately $632 billion, requiring a compound annual growth rate of 9.6% to reach $1 trillion by 2030 [8] - The stock has seen a decline of over 10% in the last six months, resulting in a P/E ratio of 32.2, which is below its 10-year median of 34.3 [8][10] Future Growth Potential - Analyst estimates suggest Visa will generate $12.81 in EPS for fiscal 2026 and $14.43 for fiscal 2027, indicating continued growth in the low double digits [13] - Even with a potential slowdown in growth, Visa is expected to reach a $1 trillion market cap by 2030, supported by its strong business model and cash flow [11][14] Investment Consideration - Visa is viewed as a balanced buy for long-term investors, with a fair valuation and a clear path for future earnings growth that is not heavily reliant on favorable economic conditions [14]

Group 1: Market Cap Insights - The exclusive $1 trillion market cap club includes notable companies like Berkshire Hathaway, the Magnificent Seven, and Broadcom [1] - Oracle and JPMorgan Chase are approaching the $1 trillion market cap, with Oracle at $787 billion and JPMorgan Chase at approximately $862 billion [2] Group 2: JPMorgan Chase Overview - JPMorgan Chase is recognized as a leading bank in the U.S., investing heavily in technology, particularly artificial intelligence, while maintaining a reputation as a stable institution [3] - The bank has a strong investment banking unit, consumer and commercial lending divisions, and a growing payments business, with its U.S. deposit market share increasing from over 7% in mid-2008 to nearly 11.8% as of June this year [4] - JPMorgan Chase is investing $18 billion annually in technology to enhance its banking services, targeting a 17% return on tangible common equity (ROTCE) through economic cycles [5] Group 3: Stock Performance - JPMorgan Chase's stock has appreciated over 48% in the past year and approximately 220% over the last five years, trading at a peer-leading three times tangible book value per share [6] Group 4: Oracle Overview - Oracle, a late entrant in the cloud business, is emerging as a significant player in the artificial intelligence cloud sector, leveraging its cloud infrastructure for AI advancements [9]