Recently we saw Visa (V) being beaten down and staying under a significant pressure as investors were trying to determine the impact of regulation act on the company. In my opinion, these expectations were too pessimistic and although CEO claimed in his press release couple months ago that the so called “finreg” will have very little impact to the company’s earnings investors seemed didn’t believe it. Later another boo boo news arrived claiming that Verizon (VZ) and AT&T (T) started planning on their own mobile payment network, while Visa a few days later announced its launching sent the stock to the south territory. Investors were irrationally panicking once again.
It seems to me as a great manipulation of the stock price since I couldn’t find anything wrong with the company and all the news which were predicting a fall of the stock and company’s dominance were a bit… well… off the wall. Someone is maybe loading up or the retail investors were panicking too much. Who knows. Maybe I am off the wall myself. However it seems that investors are realizing that all the predicted impact will not be as bad as expected and we can see some improvement. It may still mean nothing, since the crowd sometimes react weird way (which Contrarians like a lot) we can see the community improving on Visa.
We can see a big upgrade for Visa!
After spending more than a year locked at a mediocre three-star rank, Visa (NYSE: V) has impressed enough top-performing members of our 165,000-strong Motley Fool CAPS community to climb up to four stars. A total of 4,607 members have given their opinion on the payment firm, with many offering analysis and commentary to explain their recent optimism.
Shares of Visa and MasterCard (NYSE: MA) have come under pressure in recent months, as investors attempt to gauge the effects of financial reform efforts on their businesses. Both companies have yet to determine the effects of changing regulations on debit card payments. However, Visa’s CEO recently said he doesn’t expect changes to affect the growth of electronic payments in the U.S., and predicts only a modest earnings impact from the final rules.
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