Visa Cryptocurrency Stock

Take Any Dip as an Opportunity to Buy Visa

Take Any Dip as an Opportunity to Buy Visa
Written by publishing team

Visa (New York Stock Exchange: V) is quickly gaining fame as a classic stock to buy on the dip. The payment technology company best known for its namesake credit cards is up 8% for the year and more than 23% in the last 12 months.

But that doesn’t tell the whole story. If you had bought a Visa stock and held it for five years, you’d have a gain of more than 200%. This does not take into account The company’s profits that increased in each of those five years. This means that your total return was higher.

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However, with the card now approaching an all-time high in early July, what are Visa’s expectations going forward? I see that there are many bullish catalysts that would make each pullback a buying opportunity.

Tampering with financial technology

Earlier this year, Visa’s bid to acquire Plaid, the open banking platform in the US, was blocked by regulators due to concerns the company was monopolizing the digital debit card space. Visa recently acquired Tink, a Europe-based open banking platform. The acquisition of Tink will provide an additional source of income for Visa.

As the pandemic has clearly shown, there are millions of individuals who are now doing much, if not all, of their banking through methods other than traditional banking. This is facilitated by the growth of financial technology (i.e. fintech) solutions that make it much easier for companies like PayPal (Nasdaq: PYPL) To work as a conventional bank. This is especially true for small businesses and those involved in the gig economy.

Consumers have money (and credit) to spend

A year ago, all Americans had nowhere to go. Direct stimulus payments to millions of Americans combined with a lack of entertainment options have put many Americans into savings mode. This included paying off credit card balances.

This means there was a significant amount of dry powder on the sidelines when the economy finally reopened. And in the world of e-commerce, Visa is accepted and welcomed. The company’s first quarter results showed an increase in the volume of payments and the number of transactions processed.

That number should only increase as more states relax Covid-19 restrictions. The laggard at this time is cross-border payments. With the uneven international spread of the vaccine along with growing concern about the delta variant, this may remain an obstacle to the company’s growth.

However, total revenue (and earnings) should continue to build strong numbers for the first quarter. And with the company likely to Withdrawal fee increase in 2022This will provide more opportunities for growth.

At the forefront of crypto payments

Visa accepts crypto payments for some time. However, the company recently announced that more than $1 billion in cryptocurrency was purchased through the company’s crypto-linked cards in the first six months of 2021. Visa executives believe that cryptocurrency can make a huge impact in the $18 trillion it spends. Consumers each year using cash or checks.

One of the ways Visa is facilitating this growth is by allowing consumers to make transactions in US Dollar Currency (CCC: USDC). This is what is known as a stable currency that is operated by Ethereum (CCC: ETH) blockchain.

This facilitates cryptocurrency transactions by eliminating the need to convert cryptocurrency into fiat money. Over the next few years, Visa plans to expand the list of fixed coins. This is welcome news for traditional banks that are exploring the adoption of their own digital currencies. This means that Visa is probably the best way to get this business going.

Visa currently partners with Circle, BlockFi and Coinbase (Nasdaq: currency) To facilitate cryptocurrency transactions with more than 70 million merchants around the world.

Buy a snorkel and enjoy the ride

The V stock is forming a bullish ascending pattern of higher tops and higher bottoms. With support and resistance increasing, it is not unrealistic to see the stock reach $260, which would be a gain of more than 10% from the current level of the stock.

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