Visa Stocks Trading

Visa Stocks Trading

Visa Stocks CFD trading

Trade VISA Stocks

Most people are familiar with Visa branded debit and credit cards. The company itself doesn’t issue these cards but is a payments technology company that has created a global payments network to connect consumers, businesses, and government agencies to electronic payments.

While it is part of the financial services sector, the heavy technological spending at the company has made it a technology company as well in the eyes of some analysts.

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Visa provides a global network that enables the cross-border transfer of value and information. The network facilitates not only the clearing and settlement of financial transactions but also the authorisation of these transactions. Over the years, Visa has also added many additional platforms, products, and value-added services while all contribute to its estimated nearly $23 billion in revenues in 2019.

The company was founded by Dee Hock in 1970 and has its headquarters in San Francisco, CA.

Visa Price History

Although founded in 1970, Visa (NYSE: V) didn’t have its initial public offering until 2008. Since that time the performance of the stock has been absolutely stunning, although it did face some headwinds in the 2009-2011 period.

Still, investors might have known the stock would be something special when the first day’s performance saw shares jump 28%. Since then, Visa stock has been on a seemingly endless rally that has rewarded early investors quite well.

An Epic Beginning for Visa Stock

The IPO price for Visa was $44 on March 19, 2008 ($11 per share when adjusted for a later 4:1 stock split). At the time, the Visa IPO was considered the largest in the history of the NYSE. By the end of the very next day, shares were already trading at $56.50 a share ($14.13 split-adjusted).

When you consider the times, the IPO was incredible. It was the midst of the global financial crisis. Just days after the IPO JPMorgan made its offer of $2 a share for the failing investment bank Bear Stearns. Financial shares, in general, faced intense headwinds, but Visa was the clear exception.

It hasn’t been all Sunshine and Roses

What kept Visa in favour among investors is that they aren’t a bank or lender. They didn’t make loans of any sort and had no connection at all to the mortgages that caused the financial crises. Visa is nothing more than a payment network, collecting a small fee for every time a credit or debit card with the Visa logo is used.

Despite that Visa still wasn’t able to side-step the negative sentiment surrounding the financial sector in 2008, and by January 20, 2009, Visa stock ended at its all-time low of $42.42 a share.

The stock spent the rest of 2019 rising, and by April 2010 had nearly reached $100 a share. However, in May 2010 shares plummeted again as the Durbin Amendment, which had a goal of making processing debit transactions less profitable, was debated in Congress. Visa stock fell to a low of $68.28 a share as investors broadly feared that profits would be regulated away.

Over a year later in June 2011, the final rule was issued by the Federal Reserve, capping fees at $0.21 plus 0.05% of the transaction amount. Visa shareholders breathed a sigh of relief, and share prices rocketed, going from $75 on July 28, 2011, to more than $86 the next day.

Visa the Blue Chip Stock

Visa was added to the very exclusive Dow Jones Industrial Average on September 23, 2013, making it one of the blue-est of the blue-chip stocks. As of January 2020, it remains one of the 30 Dow stocks.

And ever since 2013, Visa shares have traded higher for the majority of the time. There have been some modest dips over the years, but each time Visa recovers and the stock roars back, stronger than ever.

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Strong Growth for Visa Stock

What’s really amazing is that at no time since its 2008 IPO has Visa stock been cheap. At many times it’s been trading at a higher P/E than the market average. That’s because the growth at Visa over the years has been nothing short of astounding.

Even after so many years, Visa continues to deliver double digit profit growth thanks to the continued significant growth in transaction and payment volumes. Each year physical cash is losing out to cards, and each year inflation means more transaction volume as well. Neither of those trends is expected to change, which means Visa and Visa stock will continue to grow.

Trading Visa Stock

If you follow the consensus among analysts, then the obvious course is to buy Visa stock. Of the 35 analysts covering the stock, 32 rate it a buy or outperform. In addition to that, the median price target is $205, which is almost 10% above the early January 2020 price. Looking for dips and buying is a strong strategy that’s been valid for as long as Visa had been a publicly traded company.

Watch the News

Visa has several potential news sources that could send shares rocketing higher. Traders should definitely keep an eye on news of Visa’s entrance into China. Since 2014 China has said they will pass legislation that allows Visa access to the more than 1 billion people in China, ending the near monopoly that Alipay holds in the country. Any news of positive developments on that front could send Visa shares substantially higher.

Another source of upside potential from the news is the ongoing transition from physical cash to digital cash. With its strong global payments network any move to digital dollars is likely to see Visa as a partner. In any case, it has been this shift to digital cash that’s been behind much of Visa’s continued double-digit growth. As long as the trend towards digital cash continues Visa should benefit.

Look for Underperformance from Visa

Another situation to look for when thinking about trading Visa stock is when it is performing worse than the broader market. Historically whenever Visa is lagging the S&P 500, it has been a good time to buy. Such poor performance rarely lasts more than a month or two, after which shares the stock often comes roaring back.

Disclaimer: This is a general analysis and not to be viewed or construed as actual trading advice or a recommendation of any kind and just an example of how a particular instrument could, potentially, be traded.

In Conclusion

Visa stock is just one of several hundred company stocks that can be traded through the MetaTrader 5 platform at Friedberg Direct. The platform broadens the offerings for clients, and not only that, but clients can also trade in stock indices, commodities like gold, oil, and corn; and forex pairs.

Now is the perfect time to sign up at Friedberg Direct, download the MetaTrader 5 platform, and begin trading. Users can even take advantage of a demo account to practice their preferred strategies before risking any real cash on trades like Visa stock and others.

Friedberg Direct Visa Stock Trading Information

  • Visa Stock Symbol: #VISA
  • Trading Times: Monday – Friday 14:30 – 20:59 GMT
  • Country: USA
  • Currency: USD
  • Exchange: NYSE
  • Leverage up to:

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Disclaimer: Please note these are stock CFDs (Contracts for Difference)

When you enter into a CFD trade you don’t buy the actual stock itself but instead agree on a contract with the broker to settle the difference in value between the entry and exit price of the Stock based on the price the stock is trading at on the Exchange it is listed. That means when you trade Stocks CFDs with Friedberg Direct you get a flexibility that stock market rules often make very difficult or even impossible for some.