Visa beats but falls on guidance–that’s what “priced for perfection” means

Visa beats but falls on guidance–that’s what “priced for perfection” means

After the close yesterday, Visa (V) reported earnings of $2.41 a share (after adjusting for one-time items) for the December 2023 quarter. (That the company’s fiscal first quarter.) Analysts had been looking for $2.34 a share in adjusted earnings. Revenue grew 8.8% to $8.63 billion, again beating analyst forecasts for $8.55 billion in revenue. Visa said payments volume grew 8%, and that its processed transactions rose 9% in the period. And yet the stock was down $4.70 a share, or 1.72%, to $267.91 at the close today, Friday, January 26. Why?

Visa’s earnings beat one more sign that post-Pandemic travel is back

Visa’s earnings beat one more sign that post-Pandemic travel is back

After hours on Tuesday, April 26, Visa (V) reported earnings of $1.70 a share. That modestly beat analyst projections of $1.65 a share for the quarter. But it was a big jump from the $1.35 a share in the first quarter of 2021. Visa’s shares were up 6.47% on Wednesday. Visa is a member of my Jubak Picks Portfolio where it is up 239.26% since I added it to that list on November 15, 2015. As of April 28 I’m raising the target price on Visa in Jubak’s Picks to $266 from the prior target of $194. I will also add the stock to my long-term 50 Stocks Portfolio.

Trick or Trend: Did the financials break on Friday? If so, this drop will go on for more than a day

Trick or Trend: Did the financials break on Friday? If so, this drop will go on for more than a day

What was the difference between the slight slide in the Standard & Poor’s 500 stock index on Thursday–a drop of just 7.25 points or 0.27%–and the debacle on Friday when the S&P 500 fell 2.12% or 59.85 points to 2762.13? The financial sector. On Thursday the financials supported the entire market with the Financial Sector Select SPDR ETF (XLF) climbing 0.94% even as the S&P 500 was headed lower. On Friday, financials fell even harder than the overall market with the XLF ETF dropping 2.20%.

Yesterday’s tech stock rally evaporates this morning

Yesterday’s tech stock rally evaporates this morning

Yesterday’s rally in technology stocks and the NASDAQ Composite has disappeared this morning. At 12:30 New York time the NASDAQ was off 1.6%; the Technology Sector Select SPDR (XLK) was down 1.72%; and individual technology stocks were also in the red. Amazon (AMZN), for example, was lower by 1.58%; Nvidia (NVDA) was down 3.57%; Apple (AAPL) had retreated 1.58%; and Facebook had lost 1.16%.