Visa: Slow Down, The Yellow Flag Is Out
Summary
- Visa remains fundamentally strong with a solid balance sheet, high margins, and robust cash flow, but shares are now fairly valued after a 40% run.
- A court rejection of the swipe fee settlement and possible Senate legislation suggest risks the market may be underestimating.
- Given the full valuation and heightened legal/political risks, I now rate Visa as a soft 'Hold' rather than a 'Buy.'
Analyst’s Disclosure:I/we have a beneficial long position in the shares of V either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Please do your own careful due diligence before making any investment decision. This article is not a recommendation to buy or sell any stock. Good luck with all your 2025 investments.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.