|Bid||148.690 x 1300|
|Ask||148.700 x 900|
|Day's Range||147.200 - 148.890|
|52 Week Range||102.750 - 148.890|
|PE Ratio (TTM)||36.25|
|Earnings Date||Oct 23, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||0.84 (0.57%)|
|1y Target Est||160.27|
Sep.18 -- Visa Inc. and Mastercard Inc. agreed to pay as much as $6.2 billion to end a long-running price-fixing case brought by merchants over card fees, the largest-ever class action settlement of an antitrust case. Bloomberg's Jenny Surane reports on "Bloomberg Markets."
Visa (V), Mastercard along with banks such as JPMorgan, Citigroup and Bank of America, among others, agree to pay roughly $6.5 billion to settle the claims to merchants over card swipe controversy.
Mastercard Inc., Visa Inc. and other financial institutions have agreed to settle a long-running antitrust lawsuit with merchants over the fees they pay when they accept card payments for a proposed settlement amount of about $6.2 billion. The proposed amount includes $900 million from all of the defendants, including a number of banks that issue debit and credit cards, including JPMorgan Chase & Co., Citigroup Inc., and Bank of America Corp. It also includes roughly $5.3 billion already paid by the defendants as part of a $7.25 billion settlement reached in 2012. Visa’s share of the new settlement is $600 million, which it said it set aside for the settlement on June 28.
China announces retaliatory tax increases on $60 billion worth of U.S. imports, including coffee, honey and industrial chemicals. The increases are in response to the U.S. announcing it will impose tariffs on $200 billion worth of Chinese-made goods starting next week. The tariffs will start at 10 percent, then rise to 25 percent on Jan. 1.
The major U.S. indices closed Tuesday's session on a high note, shrugging off a new round of trade turmoil as the U.S. and China exchange threats over trade pacts. has spent years debating with financial firms over how much access the social media company should have to financial information that was transferred over its Messenger platform, according to a Wall Street Journal report. The Journal reports that as recently as last year the company haggled with financial firms for the ability to use customer data for targeted advertising purposes.
Visa Inc. and Mastercard Inc. agreed to pay as much as $6.2 billion to end a long-running price-fixing case brought by merchants over card fees, the largest-ever class action settlement of an antitrust ...
While a balanced portfolio allows for some speculation, now is also a great time to consider S&P 500 stocks. Since the second half of this year, the S&P 500 has gained nearly 7%. Another reason to consider S&P 500 stocks is that they’re more stable on the way down.
Visa and Mastercard previously reached a $7.25 billion settlement with the merchants in the case, but that deal was thrown out by a federal appeals court in 2016 and the U.S. Supreme Court last year refused to revive it. The lawsuit, brought on behalf of about 12 million retailers and dating back more than a decade, accuses the credit card companies of violating federal antitrust laws by forcing merchants to pay swipe fees and prohibiting them from directing consumers toward other methods of payment. In rejecting the earlier settlement, which was opposed by retailers including Amazon.com Inc, Costco Wholesale Corp and Walmart Inc, a federal appeals court found that the accord was unfair because some retailers would receive little or no benefit.
Visa and Mastercard previously reached a $7.25 billion settlement with the merchants in the case, but that deal was thrown out by a federal appeals court in 2016 and the U.S. Supreme Court last year refused to revive it. The lawsuit, brought on behalf of about 12 million retailers and dating back more than a decade, accuses the credit card companies of violating federal antitrust laws by forcing merchants to pay swipe fees and prohibiting them from directing consumers towards other methods of payment. In rejecting the earlier settlement, which was opposed by retailers including Amazon.com Inc, Costco Wholesale Corp and Walmart Inc, a federal appeals court found that the accord was unfair because some retailers would receive little or no benefit.
The $900 million will be tacked onto the $5.3 billion paid to merchants in 2012. Visa's share of the additional settlement payment is $600 million, while Mastercard agreed to pay $108 million on a pre-tax basis, according to Securities and Exchange Commission filings.
Visa Inc. and Mastercard Inc. said Tuesday they have agreed to settle a class-action lawsuit brought by U.S. retailers in 2005 for a proposed settlement amount of $6.2 billion. Visa's stock was up 0.4% in premarket trade and Mastercard shares gained 0.5%. Visa said its share represents $4.1 billion, which will be satisfied through funds deposited with the court plus $600 million deposited into its litigation escrow on June 28. "No additional funds are required for this class settlement," Visa said in a statement. "Visa's share is covered under its U.S. Retrospective Responsibility Plan, which was created to insulate the company and class A shareholders from financial liability for certain litigation cases." Mastercard said its share of the financial agreement is an additional $108 million; in total the defendants have agreed on an additional payment of $900 million. "The company recorded a $210 million charge in its second-quarter 2018 financial statements, which will cover the financial obligation under this agreement and for estimated liabilities related to filed and anticipated opt-out merchant cases," Mastercard said in a statement. Year to date, Visa shares have rallied 28%, Mastercard's stock has run up 43% and the Dow Jones Industrial Average has tacked on 5.4%.
shares traded lower in pre-market trading Tuesday after the credit card companies said they, as well as other defendants, will pay an extra $900 million to retailers in a settlement that would ultimately cost the industry $6.2 billion and draw a line under one of the most expensive antitrust lawsuits in U.S. history. Visa said its share of the extra $900 million payout, which amends a $7.25 billion settlement first agreed in 2012, would be $600 million and would be paid from the company's current litigation reserves. Visa's total payout in the case, which was first brought by merchants in 2005, would be $4.1 billion, the company said.
A record $6.2 billion settlement won’t be enough to end Visa and Mastercard’s long-running feud with the U.S.’s biggest retailers. In the largest-ever class-action settlement of a U.S. antitrust case, Visa Inc. and Mastercard Inc. agreed to pay between $5.54 billion and $6.24 billion to a class of more than 12 million merchants who accept the payment networks’ cards, according to a regulatory filing on Tuesday. There’s a separate class of merchants fighting for changes to Visa and Mastercard’s business practices.
Visa Inc. (NYSE:V), Mastercard and U.S. financial institution defendants have agreed to settle and resolve class claims in the multi-district interchange litigation. The current agreement addresses monetary claims, and does not resolve class claims seeking modifications to network rules. “After years of thoughtful negotiation, we are pleased to be able to reach this agreement and move forward in our partnership with merchants to provide consumers convenient, reliable, secure ways to pay,” said Kelly Mahon Tullier, executive vice president, general counsel, Visa.
Alfred Kelly, Visa Inc. chief executive officer, talks with Bloomberg's Emily Chang about the company's growth drivers and strategy on "Bloomberg Markets: The Close." (Source: Bloomberg)
While the stock markets have been pressured downward by threats of global tariff wars, the financial technology sector has been relentless. Stocks like Square (NYSE:SQ), Paypal (NASDAQ:PYPL) and even old dogs like Visa (NYSE:V) or Mastercard (NYSE:MA) are soaring to outperform the S&P 500. Compare that to 30% for Visa and 40% for MasterCard, while the SPY is at 7% for the same period.
Now that prices are close to our $150 target area another review of the charts and indicator is in order. In the daily bar chart of V, below, we can see that prices have continued to rally from late May without either a lengthy or deep correction. This is a bearish divergence when compared to the price action, which shows higher highs in price.
Instinet analyst Bill Carcache on Monday called PayPal Holdings Inc. shares "an oasis in a challenging market" and said that PayPal is a "safe-haven stock (in the same family as Visa Inc. and Mastercard Inc. ." He believes that the company will be able to "accelerate" Venmo's monetization efforts and card-volume growth. In a recent conversation with the company's chief financial officer, Carcache learned that demand for physical Venmo debit cards has outstripped supply. "Issuance delays represent a short-term obstacle and suggest that Venmo card monetization efforts will continue to ramp gradually over time as customers receive and activate their cards," he wrote. "Notably, Venmo debit card volumes are largely funded via ACH [Automated Clearing House, or bank-account funding], debit cards, and stored balances and are expected to exert downward pressure on the transaction expense rate." Pricing opportunities for the core PayPal platform and the ability to pay with rewards are other growth opportunities highlighted by PayPal's CFO at the recent meeting with Carcache. He rates PayPal's stock a buy with a $120 price target. Also on Monday, PayPal announced the global rollout of its new marketing and checkout tools. The shares are down 1.6% in Monday's session, though they're up 43% over the past 12 months. The S&P 500 has gained 16% in that time.
Shares of Mastercard Inc. are up 0.7% in premarket trading Monday after Goldman Sachs analyst James Schneider added the stock to his firm's "conviction list." Schneider also raised his price target on the shares to $260 from $230, based on his optimism about the company's ability to gain share in Europe and its opportunities in the business-to-business (B2B) market. Schneider expects Mastercard to benefit from regulations in Europe that seem to be "catalyzing market share gains from local processors" and helping Mastercard to pick up speed in a "significantly under-penetrated market." He also said that the company's B2B efforts could represent nearly a fifth of Mastercard's overall revenue in five years. Mastercard shares are up 54% over the past 12 months, while Visa Inc. shares have gained 40% and the S&P 500 has risen 16%.
The United Arab Emirates will allow foreigners to obtain extended residency visas after they retire, a major policy shift designed to give expatriates a bigger stake in the economy and foster longer-term growth. Foreign residents from around the globe make up more than 80 percent of the U.A.E.’s population and have for decades been a mainstay of its economy, working, buying homes and splashing their cash at luxury malls and eateries. The new law, which comes into effect in 2019, will allow foreign retirees over the age of 55 to apply for longer residency visas which can be renewed after five years, the state-run WAM news agency reported.
Despite having a premium valuation, analysts are still bullish about Mastercard (MA) and foresee high single-digit growth in its stock price. The company’s consistently strong quarterly performance numbers and its encouraging outlook for 2018 are reflected in its ratings.
The PE (price-to-earnings) ratio is considered the best multiple to value financial technology companies like Mastercard (MA). At current market prices, the stock trades at a premium valuation to most of its peers, with the exception of PayPal Holdings (PYPL).