Visa Inc
The recent selling pressure on Visa follows Trump's endorsement of the Credit Card Competition Act, which aims to disrupt the current duopoly held by Visa and Mastercard. Analysts at Goldman Sachs estimate that even a modest shift in payment volume away from these networks could reduce Visa's earnings by about 3%.
This regulatory threat raises concerns about the sustainability of Visa's high-margin fee structure, which is vital for its profitability. If the proposed changes are enacted, banks may demand lower network fees, further squeezing Visa's revenue streams.
Visa's High-Margin Fee Engine
While Visa does not earn interest like traditional banks, the company functions as one of the toll-takers of the global economy, collecting network fees that issuers and merchants pay to access high-yield credit lending. However, this ecosystem is fragile.
If regulations squeeze issuer revenue through capped APRs and mandated alternative routing, the fallout could be twofold: banks will demand lower fees to preserve their margins, and merchants will gain the leverage to route volume through cheaper networks.
This shift directly threatens the high-margin, recurring revenue that underpins Visa's massive U.S. franchise and Mastercard's premium cross-border business.
Why Visa's Current Position Signals Caution
Currently, Visa is trading approximately 4.1% below its 100-day simple moving average (SMA). Over the past 12 months, shares have increased by 1.34% and are positioned closer to their 52-week highs than lows, suggesting a relatively stable performance.
The RSI is at a neutral level, indicating no immediate overbought or oversold conditions. Meanwhile, the MACD is below its signal line, suggesting some bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $336.00
- Key Support: $324.50
Investors are looking ahead to the next earnings report on January 29.
- EPS Estimate: $3.14 (Up from $2.75 YoY)
- Revenue Estimate: $10.69 billion (Up from $9.51 billion YoY)
- Valuation: P/E of 32.2x (Indicates premium valuation)
- B of A Securities: Upgraded to Buy (Target $382.00) (Dec. 11, 2025)
- HSBC: Upgraded to Buy (Raised Target to $389.00) (Dec. 8, 2025)
- Macquarie: Outperform (Lowered Target to $410.00) (Oct. 29, 2025)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Visa, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 22.36/100) - Stock is underperforming relative to the market.
- Quality: Strong (Score: 91.9/100) - Balance sheet remains healthy.
- Value: Risk (Score: 9.92/100) - Trading at a steep premium relative to peers.
- Growth: Moderate (Score: 49.88/100) - Growth potential is average compared to the market.
Top ETF Exposure
- State Street Financial Select Sector SPDR ETF
(XLF ) : 7.44% Weight - Akre Focus ETF
(AKRE ) : 9.58% Weight
Visa Shares Trade Lower Tuesday
V Price Action: Visa shares were down 0.78% at $325.80 at the time of publication on Tuesday, according to Benzinga Pro data.
