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The Ultimate Revelation Of Visa Share Price

On April 10th, Visa released its third quarter financial results, posting a loss of twenty one million dollars to the end of the third quarter. It is the first time that Visa has posted a loss since December 2021. The loss reported by Visa is more than double what it was a year earlier. In addition, Visa reported revenue of six and a half billion dollars, against analysts' forecasts calling for revenue of five and a half billion dollars. This growth came mainly from Visa's merchant services business, which accounts for about thirty percent of Visa's revenue.

The third quarter financial report showed that Visa's total revenue rose four percent, from the fourth quarter of last year. The increase was mainly due to the increase in payments processed by the credit card machine industry. As expected, Visa's profit margin declined from the fourth quarter, but the underlying indicators do not show any immediate or material negative aspects to the forecast. Therefore, we give our Visa stock forecast for the next four years, taking into account the above mentioned positive indicators, along with some negative ones.

The Visa stock price forecast for the next three months, taking into account the positive news received on April 10th, shows an increase in Visa transaction volume, which will support an increasing demand for the services provided by Visa. The increase in transaction volume will also support higher volumes of sales for Visa. After all, a high number of consumers now use electronic payment methods, which includes debit and credit cards, to make their purchases. This means that there are more buyers than sellers for Visa-related products and services, which in turn will push up the cost of Visa-related goods and services, and thereby drive up the price of Visa-related securities.

As long as trading and brokerage firms continue to benefit from the uptrend in Visa-related stocks, then this upward trend will continue. However, it is unlikely that trading and brokerage firms will be able to sustain the current uptrend indefinitely. In fact, they may experience a short reversal in prices during the course of the period when trading is still going on. This is especially true if there are large-scale liquidations of such shares being done by trading firms. It is also quite possible that trading firms will not be able to prevent an uptrend in prices, because the global economy will inevitably take a turn for the worse.

If we are to obtain a consensus from analysts about what will happen to Visa shares between April and December, then we can come to the following conclusion: during the period, while trading conditions were still favorable for investors, the trading price of Visa shares was too high relative to the current share prices. Trading conditions have since calmed down somewhat, and Visa shares have fallen into the low-to-medium price range. Even if we assume that investors are still wary of making investments in Visa due to the financial problems in Europe, the upside potential of Visa shares is still very large. If we further assume that investors will remain conservative and stick to their already decided upon shares, then by the end of fiscal year 2021, we can project that the net asset value (NAV) of Visa Inc will be in excess of one hundred dollars. That would be a gain of approximately forty percent over the fiscal year ending March 31, even if we assume that the economy of Europe will deteriorate at the same time.

Investors who bought shares in the expectation of gains would have received a nice boost if the economic situation in Europe turns out to be much better than forecasted. If, for instance, the European gross domestic product (GDP) continues to grow at around three percent per year on an annual basis, then by the end of fiscal year 2021, we estimate that investors will have earned around seven percent per year on their purchases of Visa stocks. That would be a nice return on their investment, but investors needn't sell their Visa stocks just yet. The upside potential is not quite enough to make investing in Visa stocks a good idea in the coming years. It would take a big profit to justify the purchase of shares.

For a mid-range or wallet investor, Visa's stock forecast for the next five years is a bit less encouraging. Our analysis indicates that the economic outlook for the first ten years to follow is worse than the worst seen during the past two decades. That means that we project Visa's shares to experience a four percent fall during the next five years. That would be bad news for a lot of people, especially those who have bought shares in expectation of continued growth. While we recognize that a lot of people are holding onto their Visa stocks because of the “safe” returns they expect to receive from the company, they would be better off selling. The five percent drop to be expected would more than offset any gains they may have made.

Investors who have focused on both the economic outlook and the environmental scorecard will find that there are some additional reasons to be bearish on Visa. The environmental report issued last summer by the Securities and Exchange Commission painted a rather grim picture of the future of the bi-lateral industry. It projected that the growing popularity of debit and credit card use would lead to a sharp increase in the creation of plastic waste. Some companies had already started working towards minimizing this problem. Unfortunately, no progress had been made. Investors who are worried about the impact of plastics on the environment should buy shares of those companies that are working hard to address the problem.

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