Key Stats for Visa Stock
- Yesterday’s Price Change: -5%
- Current Share Price: $353
- 52-Week High: $375
- Visa Stock Price Target: $382
What Happened?
Visa (V) stock dropped nearly 5% today following a report by The Wall Street Journal that retail giants Walmart and Amazon are exploring the issuance of their own US dollar-backed stablecoins.
The report suggests that these companies, along with other multinational giants such as airline operators and Expedia Group, are considering crypto tokens as a means to bypass traditional credit card processing fees from networks like Visa and Mastercard.
The news erased more than $60 billion in combined market value from Visa and Mastercard, as investors worry about potential disruption to the traditional payments ecosystem.
Stablecoins could enable large merchants to save billions in transaction fees, with estimates suggesting that Walmart and Amazon could save $14 billion annually by reducing their reliance on traditional card processing networks, which typically charge 2-4% per transaction.
The broader payment sector was also hit, with American Express, PayPal Holdings, and Capital One Financial all declining in intraday trading as the market digested the implications of potential stablecoin adoption by major retailers.
See Visa’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us About Visa Stock
Despite the sharp sell-off, Wall Street analysts are encouraging investors to view this as a buying opportunity rather than a fundamental threat to Visa’s business model.
Multiple analysts maintained their outperform ratings on the stock, arguing that widespread stablecoin adoption in consumer payments remains unlikely in the near term.
The market reaction to Visa stock appears to be driven more by fear than fundamentals. Analysts note that consumers are deeply accustomed to using credit and debit cards, habits that are unlikely to change quickly.
Additionally, regulatory hurdles and the lack of standardized stablecoin frameworks could significantly impede adoption.
Importantly, Visa hasn’t been sitting idle waiting for disruption. The payments giant has already integrated stablecoin capabilities and is positioned to process and settle consumer payments on stablecoin rails.
With analysts maintaining an average price target of $382 (implying 8% upside from current levels), the recent decline may represent an attractive entry point for long-term investors in the payments platform.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
