Swiping their way higher: Visa, Mastercard could be the next $1 trillion companies

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Swiping their way higher: Visa, Mastercard could be the next $1 trillion companies via LKrauskopf

NEW YORK - Tech and internet titans were the first to reach $1 trillion in stock market value, but the next U.S. companies that could do so are better known for their plastic.

While the stocks may not keep up that torrid pace, Visa and Mastercard would each be worth over $1 trillion by 2023 if their average annual gains of the past three years were to continue, surging past the likes of Facebook Inc and Berkshire Hathaway Inc, if they also maintain their recent pace. Visa had a market value of $449 billion and Mastercard’s stood at about $324 billion as of Thursday’s close. The $1 trillion club currently includes Apple Inc, Microsoft and Google-parent Alphabet.

Visa reported quarterly revenue late on Thursday that slightly missed analyst estimates, a day after Mastercard beat quarterly profit estimates. Their valuations have expanded to their most expensive in at least a decade. Visa trades at about 31 times forward 12 months’ earnings estimates, while Mastercard trades at 35 times, according to Refinitiv Datastream. Both stocks are trading at a higher premium to the market than they have on average over the past five years.

 

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LKrauskopf Those bastards.

LKrauskopf

LKrauskopf Credit card companies. Making money on the backs of the most vulnerable people for decades. Credit card companies do not make money with people that pay their bills on time.

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