4 Reasons to Buy Visa Stock Like There's No Tomorrow
Shares of Visa (NYSE: V), a leading financial services company, are up 12% this year, significantly outperforming broader equities. The company owes that partly to its latest quarterly update, which was strong. Some investors may also feel that Visa is a great stock to own if President Donald Trump's tariff policies lead to inflation, an environment in which Visa can thrive.However, beyond recent financial results and what may or may not happen in the short run, looking at Visa's underlying business reveals plenty of compelling reasons for long-term investors to buy the stock and hold on to it for a while. Let's consider four of them.Visa operates a payment network that facilitates the processing of debit and credit card transactions. One of the main growth drivers for the company is the increased reliance on digital payment methods. People are ditching cash and checks for good reasons. Cash is hard and unsafe to carry in large amounts. And if stolen, there is no restricting its use. Compare that to credit cards, which can hold any amount of money, can be set up to require a PIN for everyday use, and can be restricted quickly in case they are stolen. That's before we mention the rapid growth of e-commerce, where cash isn't even an option.Continue reading
Shares of Visa (NYSE: V), a leading financial services company, are up 12% this year, significantly outperforming broader equities. The company owes that partly to its latest quarterly update, which was strong. Some investors may also feel that Visa is a great stock to own if President Donald Trump's tariff policies lead to inflation, an environment in which Visa can thrive.
However, beyond recent financial results and what may or may not happen in the short run, looking at Visa's underlying business reveals plenty of compelling reasons for long-term investors to buy the stock and hold on to it for a while. Let's consider four of them.
Visa operates a payment network that facilitates the processing of debit and credit card transactions. One of the main growth drivers for the company is the increased reliance on digital payment methods. People are ditching cash and checks for good reasons. Cash is hard and unsafe to carry in large amounts. And if stolen, there is no restricting its use. Compare that to credit cards, which can hold any amount of money, can be set up to require a PIN for everyday use, and can be restricted quickly in case they are stolen. That's before we mention the rapid growth of e-commerce, where cash isn't even an option.
