Are Visa shares cheap after monopoly charge dive?
After a brush with the law in the US triggered an exodus on Tuesday, independent analyst Alistair Strang takes a look at potential for this credit card giant's stock.
25th September 2024 07:20
Visa Inc Class A (NYSE:V) and the company's latest travails with the US justice system is worthy of a glance, their share price being trashed by over 5% on Tuesday. The justice department in America has accused Visa of behaving like a monopoly.
It's argued that further competition is needed in the area of credit card processing to reduce prices. High transaction costs are passed onto consumers by retailers and, with Visa controlling over 60% of the processing market, the company can therefore be accused of contributing to the higher cost of living in the USA.
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The immediate situation for Visa looks like share price value below $272 risks promoting reversal to $262 and perhaps a bounce, due to the uptrend since 2022.
Our Big Picture secondary, should such a level break, calculates down at $222 and a pretty confident hope for a rebound. However, we suspect $262 shall be “it”.
If things intend go right for Visa, it needs above $293.07 to signal the potential of further movement to $300 with our secondary, if beaten, at $329 and a pretty certain chance of some hesitation.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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