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Leading payment processor in the world, Visa Inc (NYSE: V) has consolidated its presence across 200 countries, with over 100 Million merchants, more than 2 Billion Visa credit cards collectively accumulating significant payment volume. In the last fiscal year, it reported processing $14.3 Trillion in payments. Visa stock price is also reflecting on the company’s performance.
Visa managed to navigate through turbulent markets in various countries and prolonged geopolitical uncertainties. Rising inflation made it challenging for many companies to operate, but the payment processor mostly benefitted. Higher inflation resulted in more transactions which translated into higer revenue as Visa earns a fraction of each transaction from its payment services.
The second quarter 2023 earnings report for shows Visa’s revenue saw a notable increase. Its over $8 Billion revenue was about 11% higher than the previous quarter. In the previous fiscal year, the payment giant company reported revenue of about $29.3 Billion, a 22% increase from previous year.
Visa holds notable margins over its impressive revenues. The Motley Fool analysis shows only few companies stand aside Visa in terms of lucrative margins.
In comparison to other industry leaders like Apple Inc., The Walt Disney, Exxon Mobil Corp, Walmart, etc., Visa Inc. leads in terms of profit margin.
Visa Stock Price Movement
Company’s positive earnings most certainly reflected on the Visa stock price. It continued to trade in an uptrend and recently attained its 52-week high, and the current trading price remains at the higher side of the range. However, following the recent high, V stock was seen consolidating due to lack of momentum.
Visa stock needs to sustain above $241 in order to take its voyage further to its next target of $252, a multi-year high. Following the golden crossover in January, V stock price continued movement in the upward channel maintaining higher high swings.
Immediate support for Visa stock price stays at $221 while $202 would be the support in a longer timeframe. Earnings have played a crucial role in setting the course for V stock price. The upcoming earnings report set to release in August is expected to have an affect on the stock of a similar intensity.
Although the upward movement is likely as Visa stock has maintained for the past several months, a trend reversal could also be expected given the possibility of profit booking.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
