What is going to happen to the price of MasterCard now that Visa has went public?
Further - how is the next credit area to take a hit going to be the credit card market, what impact with this have on the banks and the issuers?
Answers
788 points
DaveDiggz answered one year ago …
I think in the short and long term both companies will do well...MasterCard has been in a solid uptrend for a while now and looks like it'll continue to do so (the stock isn't insanely expensive yet). Both Visa and Master Card are international companies and foreign business will actually help domestic bank issuers a great deal. So even if there's a bit of a US credit crunch (which I think is likely), the stocks might see some downward pressure in the short term, but overall long term economics for this industry are solid.
I'd also keep an eye on AXP as well - it's breaking a big down-trend and has one of the best brand names in the business.
379 points
dustbusterz answered one year ago …
personally, i think Visa is one of (if not the )largest and most respected card out there today. Master card arguably isn't far behind, but i think Visa with its international position stands to do very well over the next few years.Personally, i wouldn't go out and buy stock in Visa just yet. IPO's do have a tendency to run up in the first few months, then can lag the market for a while. If your planning to buy into Visa<I believe I would wait till about 2 to 3 years after the IPO just to keep an eye on its activity. Once it has had a chance to setting down a but, if you still like its fundamentals, then it might be a good time to move in.
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