Visa Stock Slid 6% Last Week. Here’s What Sparked the Move

Nikko Henson3 minute read
Reviewed by: Thomas Richmond
Last updated Jan 20, 2026

Key Stats for Visa Stock

  • Past-Week Performance (5D): -6.14%
  • 52-Week Range: $299 to $376
  • Valuation Model Target Price: $487
  • Implied Upside: 48.3% over 2.7 years

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What Happened?

Visa Inc. (V) stock fell 6.14% over the past week, pulling back sharply midweek and finishing near $328 after a broad sell-off in payment and financial stocks.

The decline was driven by comments from Donald Trump, who called for a one-year cap of 10% on credit card interest rates, a proposal that raised concerns about potential disruption to credit card profitability across the financial sector.

Although Visa does not set interest rates, the headline sparked worries about knock-on effects for the broader card ecosystem.

The proposal triggered selling across card-related stocks, as investors reduced exposure to names tied to consumer credit and payments following the announcement.

Visa moved lower alongside other major financial institutions, indicating the reaction was sector-wide rather than tied to company-specific news.

By the end of the week, selling pressure eased and shares stabilized near $328, suggesting the move reflected short-term policy headline risk rather than a change in Visa’s transaction trends, earnings outlook, or competitive position.

Visa stock
Visa Guided Valuation Model

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Is Visa Undervalued?

Under valuation model assumptions shown in your TIKR image, the stock is modeled using:

  • Revenue Growth (CAGR): 10.3%
  • Operating Margins: 68.0%
  • Exit P/E Multiple: 25.7x

Based on these inputs, the model estimates a target price of $487, implying 48.3% total upside from the current share price over the next 2.7 years.

Over the next year, cross-border travel spending remains a key earnings driver, as international transactions carry higher fees and contribute disproportionately to revenue.

Continued expansion of value-added services such as fraud prevention, authentication, and data analytics increases revenue per transaction and adds a more recurring component to growth.

Visa Direct continues to expand money-movement use cases like payouts and remittances, supporting volume growth beyond traditional card purchases.

At the same time, Visa’s scale and network economics allow incremental revenue to convert into durable margins, even during periods of headline-driven volatility.

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All it takes is three simple inputs:

  1. Revenue Growth
  2. Operating Margins
  3. Exit P/E Multiple

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

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