$V Part 1: Pioneer of computerized credit – Visa!
Visa, a financial giant established as an association of bank debit cards, provides credit, loan, clearing, and payment services.
Visa changed the world of credit cards by computerizing the payment process, thereby shortening transaction time to less than a minute!
In 2020, Visa was among the 10 largest companies in the world, and its IPO was the largest in US history.
The company is classified as a 'duopoly' along with Mastercard and was even previously summoned for a discussion by the US Department of Justice due to restricting market competition.
All recent analyst ratings for the stock indicate significant upside of tens of percent. (pictured)
The financial sector (XLF) has fallen close to 5% since the beginning of the month, and with it many stocks in the credit and fintech sectors, including Visa, which has already begun a decline of about 20% since late July.
The straw that broke the camel's back: On 10/26, Visa published excellent earnings, but during the company's conference call, it was stated that higher growth was expected, which reflected investor dissatisfaction, sending the stock to a further 13% decline to date.
Adding fuel to the fire? On 11/16, the company's stock declines intensified after Amazon announced that it would stop accepting Visa credit cards in the UK starting this January due to its fees.
Continuation and technical analysis in the next post: