Fri, Apr. 17, 11:02 AM
- "If any doubt remained, it is very clear that dollar strength is a major problem right now for large multinationals," says Topeka, after going over American Express' (AXP -4.5%) Q1 results, and noting the corporate card business slowdown wasn't isolated to any particular industry.
- AmEx, notes the team, has 31% of its volume outside of the U.S. and is highly dependent on cross-border and business-related travel. 'This reads negatively for Mastercard (MA -1.4%), and, less so, Visa (V -1.4%)."
- AmEx earnings call transcript and presentation slides.
- Previously: AmEx beats on bottom line, but outlook still dour (April 16)
Thu, Apr. 16, 1:46 AM
- Target (NYSE:TGT) has agreed to reimburse about $19M to financial institutions which had issued MasterCard-branded cards that were a part of the its massive data breach in 2013.
- The amount under the settlement with MasterCard (NYSE:MA) covers the costs that banks incurred to reissue credit and debit cards to customers as a result of the breach.
- Previously: Target nears $20M data-breach settlement with MasterCard (Apr. 14 2015)
Tue, Apr. 14, 6:34 PM
- After months of negotiations, Target (NYSE:TGT) is close to a settlement with MasterCard (NYSE:MA) that would reimburse banks with roughly $20M over Target's 2013 data breach, Dow Jones is reporting.
- The cost is another on top of what has been a stack related to the heavy data incursion. The retailer noted in its annual report that it faced $252M in costs related to the breach.
- The settlement covers card reissuance as well as some fraud that resulted from the data exposure. MasterCard will distribute funds to affected banks, including Citigroup, Capital One and Chase.
- Target faces a bigger payout in its negotiations with Visa (NYSE:V), which are separate from this settlement.
- Previously: Target to pay $10M data breach settlement (Mar. 19 2015)
Wed, Apr. 8, 7:36 AM
- Citing Capital One's (NYSE:COF) strong card loan growth, capital return, and reasonable valuation, Citi keeps a Buy rating on the stock and $95 price target. Continuing to see a "modestly" improving U.S. consumer, Citi also has Buy ratings on AmEx (NYSE:AXP), Discover (NYSE:DFS), MasterCard (NYSE:MA), Synchrony Financial (NYSE:SYF), and Visa (NYSE:V).
Tue, Mar. 10, 1:18 PM
- Nomura likes where Visa (V -1.6%) and MasterCard (MA -1.8%)sit in the e-commerce ecosystem.
- While issuers compete against themselves with margin-pinching rewards programs, Visa and MasterCard win as volume rises.
- The global payments giants also stand to benefit with consumer credit balances starting to grow again - instead of needing to pump up reserves like banks.
- Both stocks have out-performed the S&P 500 Index over the last year.
Fri, Feb. 27, 11:31 AM
- Factset has compiled a list of the most popular holdings of hedge funds at the end of Q4 and which stocks fell in or out of favor within the group.
- Overall, hedge funds increased their positions in the top 50 holdings during the quarter by 1%.
- Top 50 hedge fund consumer staples/discretionary stocks showing an increase: Family Dollar (NYSE:FDO) +1.3%, PepsiCo (NYSE:PEP) +20.3%, Priceline Group (NASDAQ:PCLN) +24.2%, Delta Air Lines (NYSE:DAL) +15.3%.
- Top 50 hedge fund consumer staples/discretionary stocks showing a decrease: Mastercard (NYSE:MA) -4.2%, Walgreen Boots Alliance (NASDAQ:WBA) -1.3%, Dollar General (NYSE:DG) -11.6%, Mondelez International (NASDAQ:MDLZ) -0.9%.
- Another way to look at the list is to examine which stocks are missing. Coca-Cola (NYSE:KO), Wal-Mart (NYSE:WMT), and Procter & Gamble (NYSE:PG) are in that club.
- Factset's hedge fund ownership report (.pdf)
Thu, Feb. 19, 12:07 PM
- "The court's ruling will not provide any benefit to consumers and will, in fact, harm competition by further entrenching the two dominant networks," says American Express (AXP -2.2%), responding to its loss in an antitrust lawsuit, and vowing to appeal.
- Filed in 2010 and heard by a federal judge last year, the case is about AmEx's prohibiting merchants who accept its cards from steering customers towards those cards processed by rivals Visa (V +0.3%) and MasterCard (MA +1.7%), or debit cards.
- “The most damaging thing that can happen to the American Express brand is when our card members are discriminated against at the point of sale,” said company CEO Ken Chenault when he testified at last year's trial.
- It's another 2015 blow for AmEx which last week announced an end to its long-time exclusive partnership with Costco in the U.S. The stock's now lower by about 16% YTD.
- Previously: AmEx lower by 1.9% after losing antitrust suit (Feb. 19)
Fri, Feb. 13, 4:32 PM
- Fresh off news that its agreement with Costco (NASDAQ:COST) is coming to an end, American Express (NYSE:AXP) is also splitting with JetBlue (NASDAQ:JBLU) as the airline has reportedly reached a new credit-card deal with Barclays (NYSE:BCS) and MasterCard (NYSE:MA).
- The change ends a credit-card partnership that started in 2005. AXP's pact with Costco has lasted 16 years.
- Airline deals are generally desirable for card issuers as annual fees are more likely and travel awards can spur spneding.
- After hours, AXP down just 0.1%; MA +0.1%; BCS +0.2%.
- Previously: Analysts weigh in on American Express after Costco loss (Feb. 13 2015)
Fri, Feb. 13, 1:05 PM
- Banks are getting the worse end of the deal in co-branding partnerships with major retailers, say banking officials.
- Margins have shrunk on co-branded programs for major card issuers and processors such as Capital One (NYSE:COF), Wells Fargo (NYSE:WFC), American Express (NYSE:AXP), Visa (NYSE:V), and MasterCard (NYSE:MA) with retailers playing banks off against one another in order to score better terms.
- Earlier this week, American Express announced it would end its co-branded card with Costco.
Tue, Feb. 3, 10:05 AM
Fri, Jan. 30, 8:21 AM
- MasterCard (NYSE:MA) reports net income rose 21% in Q4, adjusted for currency swings.
- Acquisitions had a $0.03 dilutive impact on EPS during the quarter.
- Gross dollar volume +13% to $1.2T.
- Cross-border volume +19%.
- Processed transactions +11% to 11.6B.
- A standout from the quarter was the effective tax rate paid by the company of 20.3% vs. 32.0% a year ago.
- MA +3.83% premarket.
Fri, Jan. 30, 8:03 AM
Thu, Jan. 29, 5:30 PM
Fri, Jan. 23, 1:01 PM| Comment!
Tue, Jan. 20, 10:56 AM
- The Supreme Court passes on hearing a case over the level of swipe fees charged by banks to retailers.
- The cap on swipe fees will stand at $0.21-$0.24 following the high court decision.
- Intense lobbying from the financial services industry prompted the Fed to move off its original recommendation for a $0.12 cap.
- The National Retail Federation and other consumer groups have vowed to keep the fight going.
- Related stocks: V, MA, WMT, TGT, BBY, CVS, WBA, COST, HD, LOW, GPS, M.
Dec. 27, 2014, 10:20 AM
MA vs. ETF Alternatives
MasterCard Inc is a technology company in the payments industry that connects consumers, financial institutions, merchants, governments and businesses, enabling them to use electronic forms of payment instead of cash and checks.
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