Why Visa Stock Rose 10% in April

This post was originally published on this site

What happened

Shareholders of Visa (NYSE:V) beat a booming market last month. Their stock rose 10% in April compared to a 5.2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally wasn’t enough to put the credit card giant ahead of the market, though, as it is still trailing indexes over the past year.

Image source: Getty Images.

So what

Investors were happy with Visa’s latest earnings report, which in late April showed evidence of a gathering rebound. Revenue fell just 2% through March, compared to a 6% decline in the prior quarter. “We believe we are starting to see the beginning of the end [of the pandemic slump],” CEO Alfred Kelly said in a press release, “and the recovery is well under way in a number of key markets around the world.”

Visa returned to rising payments volumes in the period, and its earnings beat expectations.

Now what

The financial services giant didn’t issue a detailed outlook for the rest of the year, which will involve lots of volatility as the business goes up against cratering demand from the peak pandemic-shutdown weeks last year. But volumes, revenue, and earnings will likely hit a new record soon as long as economies keep recovering in places like the U.S., Europe, and China.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Related Posts