|By Gabriel Shpitalnik|
It has been now over seven years since Visa’s unprecedented IPO sent waves of good vibes to then struggling fintech of pre-bubble financial markets and a breath of fresh air to the skeptics and analysts. Visa’s stock gained well over 400% before shareholders voted for 4-for-1 Stock Split, following few very strong quarters. It was one of the best equities to hold during the Obama administration.
The company has just ended another strong quarter and reported GAAP net income for the year of $1.9 billion or $0.79 per share. According to company press release of 10/24/2016 it is a 28% increase of the last year. So will it split again if the current price of $83 (10/31/2016) will appreciate to $100 per share?
Although another 4-for-1 Stock Split is unlikely, a modest 2-for-1 split sounds very reasonable. Visa and its payments technology team are currently working to enable consumers to use digital currency, a hot niche along with its current initiative for a robust API to enable Integration to Digital Wallets across big institutional clients. According to another press release, Visa Checkout is “One of the fastest-growing consumer products in the company’s history, now has more than 15 million consumer accounts. Hundreds of thousands of merchants and more than 1,400 financial institution partners now offer Visa Checkout in 16 countries around the world; expansion into five additional European countries and India will take place by the end of 2016.”
Given the history of it success in its space and its risk to go after evolving technologies, visa will most likely get to $100 territory relatively fast and may split again during the earlier times of next presidency.
|This story from Macroaxis reported on October 31, 2016 contributed to the next trading day price decline.The trading price change to the next closing price was 1.08% . The trading price change when the story was published to the current price is 46.42% .|