Visa and MasterCard Likely to be the Next $1 Trillion Companies

Tech and internet titans were among the first companies of the U.S. to reach $1 trillion value in stock market. However, the next U.S. companies to take over are more famously known for their plastic money.


Ascending stock prices are boosting debit and credit card companies MasterCard Inc. and Visa Inc. at the top of market value chart. They currently rank 7th and 11th among other companies in the S&P benchmark index. The stock prices of Visa and MasterCard have earned around 50% during the last year.


If Visa and MasterCard annual gains of the previous three years continue then these companies are likely to be worth over $1 trillion by 2023 each. This position will surpass the position of Berkshire Hathaway Inc. and Facebook Inc. even if these companies maintain their current pace. The rise in demand is owing to the rapid shift towards cashless financial transactions stimulated by increased demand from online shopping.


Sandy Villere, Villere Balanced Fund’s portfolio manager that holds Visa shares said that everything is travelling on their rails, everything and everyone is depended on them, merchants, consumers, and banks which means their demand is inevitable.


According to the Thursday close, MasterCard had the market value of around $324 billion and Visa had of $449 billion. The contemporary $1 trillion club has Google-parent Alphabet, Microsoft, and Apple Inc.


Amazon is currently standing on $927 billion after the e-commerce company had successfully progressed in its earnings on Thursday. It was in a position to crack $1 trillion exactly as it did in September 2018.


Visa and MasterCard’s revenue have almost doubled over their previous five fiscal years which accounts for $23 billion for Visa and $17 billion for MasterCard.


In the credit and debit card market, Visa holds 60% of the shares and MasterCard holds 30%.


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