Huang points out that both Visa and Mastercard have dealt with various challenges, including regulatory scrutiny and changes in market dynamics. He acknowledges the difficulties faced by the companies over the past year, which have raised valid concerns among investors. Nevertheless, Huang believes the recent stock performance does not accurately reflect their long-term potential. He refers to both companies as “best-in-class compounders” and notes that they have diverse growth opportunities on the horizon. For Visa’s upcoming earnings, Huang predicts a slight deceleration in volume growth but maintains that the overall results should align with the company’s guidance.
As for Mastercard’s earnings, expectations are slightly higher. Huang suggests that Mastercard could meet or even exceed its revenue guidance, particularly due to positive developments in pricing strategies and partnerships in Europe and the U.S. He also notes a trend of slowing card volume for major issuers, which may impact the earnings outlook for both Visa and Mastercard. Overall, while Huang has tempered his growth projections, he remains confident in the stability of both companies, emphasizing their resilience amidst the current economic challenges. Investors will be eagerly watching the earnings reports to see if these predictions hold true.
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