Mastercard, Visa off 3.0% and 3.1%, respectively, after volume spikes

Mastercard, Visa off 3.0% and 3.1%, respectively, after volume spikes

Mastercard (MA) and Visa (V) stocks experienced a significant decline on July 2, 2025, falling by 2.57% and 2.46%, respectively, following a period of high trading volumes. The drop in shares comes amidst mounting concerns over earnings reports and increased competition in the digital payments sector.

Mastercard, which is set to release its Q2 earnings on July 30, has seen its stock retreat from a May high of $594.71, despite analysts projecting a year-over-year earnings per share (EPS) increase of 12.8% to $4.05 [1]. The decline is attributed to profit-taking ahead of the earnings report and the intensifying competition in digital transactions, with Visa's Token Service and PayPal's QR payment push underscoring the sector's dynamic landscape. Mastercard's reliance on traditional card networks is also facing pressure as consumers shift to cardless solutions like Apple Pay and crypto-friendly platforms.

Visa, the leading global payments technology company, mirrored Mastercard's weakness, falling 2.46% on July 2. The decline reflects broader sector caution and regulatory scrutiny, with the Consumer Financial Protection Bureau (CFPB) investigating Big Tech's financial services. The ongoing regulatory crosscurrents add uncertainty to the sector, with Buy Now, Pay Later firms like Klarna raising competitive stakes [1].

Technical indicators suggest that Mastercard's stock may be poised for a rebound. The Relative Strength Index (RSI) is at 64.99, indicating a neutral position, and the price is near the lower Bollinger Band at $531.35. A positive MACD crossover signals a potential uptrend. Traders are watching the $540 support level, with options like MA20250718C540 and MA20250718C545 offering tactical exposure to a potential earnings bounce [1].

Visa's stock, trading at $350.71 as of July 11, 2025, has seen significant growth over the past year, reaching an all-time high of $369.15 on June 4, 2025. The company's year-to-date performance shows an increase of approximately 11.94%, outpacing the broader market. However, the stock's valuation metrics suggest a premium relative to the broader market, with a forward P/E ratio of 32.69 and an EV/Sales ratio of 17.37 [2]. The company's earnings release on July 29, 2025, will provide further insights into its financial performance and outlook.

References:
[1] https://www.ainvest.com/news/mastercard-slides-2-5-digital-payments-rally-fading-2507/
[2] https://finimize.com/content/v-asset-snapshot