I will tell you why the stock is dropping imo but you will bash me I'm sure because you are so used to stocks always rising and you always listen to the pros who have a vested interest in keeping you in !
1. price to earnings ratio is 28 but growth rate is 9% making this very overpriced read wall st cheat sheet article says fair value for this is about 165
2. fed reported DECLINE in credit card use last month OK so you say Visa will buck this trend but no doubt the 9% growth is now in jeopardy would you disagree ?
3. Mortage bankers aid applications for purchase of homes and more importantly refis is down to 20 year lows this refi money was fueling much of v gains over the past 2 years people !
4. Competition from digital wallets like Marc Andreeson is coming fast and the pros will start to take that into effect when computing what Visa stock level should be The days of ability of V to charge 2% or 3% on each transaction are numbered !
5. The fed is cutting back stimulus that will mean higher interest rates and people will have less money to spend !
6. A huge number of retailers warned like urban outfitters, american eagle, aeroposta, mcdonalds, walmart etc you think you are immune to this ? This indicates slowdon of credit card transaction fees do I have to spell it out of you ?
7. Market has not corrected for years and is due for a minimum 10% drop do you disagree ?
8. Walmart and probably others will be suing V to recover transaction fees !
Is that enough reason for you ?
Of course you will bash me not one person has agreed with me that is reason number 9
when everyone is bullish and all in who will buy when some want to get out ?
Everyone of you bashed me not one gave me credit now you see I told you they would not get 10% revenue growth:
The company's revenue growth slowed to 7 percent in the second quarter ended March 31 from 11 percent in the first quarter.
Chief Executive Charlie Scharf said the impact of the strong dollar would be "slightly more pronounced" this quarter before rebounding in the following three months.
You reasoning is informative but off. EPS growth is mid to high teens forecast, but actually greater than 20% yoy. And your correct pe ratio is 26+ but forward pe ratio is 20. All the other stuff doesn't matter b/c the basis of this company is the international growth NOT domestic, so the Russia issue along with WMT suit and this news of big Hedge fund shorting is contributing to this decline. Mark my words this company will continue to out perform the market but all these negative headline is weighing heavy on the stock at the moment. It passed the critical 10% mark which means it will likely touch $200 soon.