V
VISA Inc.
stock NYSE

5-10% is not a discount lol thats just normal volatility. V and MA drop that much like twice a year.
The interest rate cap thing will never happen anyway, but even if it did these companies make most of their money from transaction fees not interest. Its the banks that would get hurt, not the payment networks.
Not saying they’re bad stocks but “easy money” based on a Trump proposal is a strech.​​​​​​​​​​​​​​​​

DGX.V

I held XUSF for a while and it did well for me until I reworked my portfolio. I like some of its top holdings those being BRK, V, MA. Of course, it holds a lot in US banks which you might be after. For cad banks, I'd just hold XIC which has plenty of exposure.

Not a big enough discount. People calling a -8% downswing on V a "huge discount" lol

8.5% 5-day. And for V that's a big move in a short time.

They aren't down because of interest rate cap.
Earlier this week some of the other retailers tanked (ANF, URBN, etc.) after ANF released updated guidance which shows a lot of softening in consumer retail demand.
As a result of this, ANF tanked around 20%, URBN around 10%, and a few other consumer discretionary stocks sold off hard as well. Along with these you saw the same exact selling happening on credit card companies (V/MA/AXP) presumably because big money thinks that the credit card processors will have slowing transaction revenues due to the softening consumer.

It also doesn't matter if it's credit or debit. If folks have to go cash only they will still need to pay for things. Moreover, Visa and MC are is global companies. The proposed legislation will only impact USA issuers negatively. There may be some impact, but not to the tune of these guys going belly up. I'm predicting another Beat for V next quarter.

I wish I had any right now! Would have bought that juicy MA and V dip

The street is not reacting to the 10%. Rightfully so since that affects banks not V/MA.
They’re reacting because the Credit Card Competition Act (CCCA) was reintroduced and is endorsed by Trump this time. A bipartisan group has been trying to pass this for a few years unsuccessfully.
It seeks to cap the rates merchants pay to accept credit cards. The proponents say this will lower costs for consumers, which is bullshit. Retailers like Walmart will picket the difference.
What it will do is kill off your credit card rewards. Those are funded by that transaction fee.
If you want more info: https://handsoffmyrewards.com

They can close credit cards , people will still use debit cards not cash, so I don’t think it matters to MA or V

I think you are conflating two different proposals. First was the edict issued by the Government in DC that interest rates be capped at 10% by next Tuesday.

The Second is proposed legislation, called The Credit Card Competition Act, which will require banks to "enable at least two unaffiliated card networks (including one outside Visa/Mastercard)" for transactions. The intent is to lower swipe fees. A direct attack on the business model of V/MC.
[https://www.marshall.senate.gov/newsroom/press-releases/marshall-durbin-reintroduce-credit-card-competition-act-backed-by-president-trump/](https://www.marshall.senate.gov/newsroom/press-releases/marshall-durbin-reintroduce-credit-card-competition-act-backed-by-president-trump/)

It's started. Trump has bashed the payment fees of V/MA and is supporting the Credit Card Competition bill. Visa is down 5% today and 10% on the week and will continue to fall. People are waking up to how these payment networks actually work.

$V or Visa Inc.
I think the sell off is overdone based on Trump wanting a one year cap on credit cards of 10%.
Whatever congress ends up passing will not be even close to 10%. It's an ante by the administration.
Maybe that ends up looking like a tiered approach where cardholders with FICO 800 to 850 pay 15% and 750 to 799 pay 17%, and 700 to 749 pay 19%, and 650 to 699 pay 21%, and so on.
This way, Trump can declare victory, but it is no way as draconian as 10%.
$V rallies 20% if it goes down this way.

Trump [supports](https://x.com/TrumpTruthOnX/status/2010945459913969747) this and today said the out of control swipe fee ripoffs must be stopped. Congress is surprisingly showing bi-partisan interest. THIS is the real reason V/MA are crashing big time...not the 10% credit card apr caps which don't directly affect these companies. Simply put...when you use your "Visa" debit card, more payments will be routed to lower cost competitors which will absolutely hurt Visa as they can't charge assessment fees in those case.
Gemini only thinks this hit will be 4-7% eps hit, but Grok is more critical and think if passed this could be a 15-25% hit. I think it could be more.
On the other side, Fiserv owns two competing back-of-card networks that would benefit from this...but Gemini thinks they would only get a 1-5.-3% boost from this bill. Grok is more bearish and believes Fiserve gets hit 10-15%.
In November I warned Visa/Mastercard about issues like this. [https://www.reddit.com/r/ValueInvesting/comments/1p0tk5q/comment/npn1ot0/](https://www.reddit.com/r/ValueInvesting/comments/1p0tk5q/comment/npn1ot0/) There are so many legal and competitive threats to these two big payment networks it's not even funny.
I think today's crash for both stocks was just the start...and not a momentary dip.

The price action in the last couple hours of close seems to suggest a lost decade or two. No rotation and the attempt at manipulation failed. The double V and resulting shoulders are also suspicious to say the least.

YES.V (CHAR technologies)
ROOF (Northstar Clean Technologies)
Lmk if youre interested in the DD for either of these.
Best of luck!

It's hard because it's like Apple to Oranges, since it's a semi company vs payment processors. I like the valuation and story a bit more on MRVL, but it's kind of an AI play, so there is still risk in the capex cut.
If you want long term, boring, compounders, that V/MA will probably make more sense, but which has probably a chance of a higher return, MRVL would probably be the name.

I'm eyeing MRVL too, debating whether or to buy that or V/MA after the recent pullback, what do you think?

Even though V/MA don’t charge interest, anything that pressures banks eventually flows through the payments ecosystem.
That said, a 5% move feels exaggerated for a suggestion with low probability of passing.
I’d be more concerned if interchange fees were targeted instead.

PYPL bots or shills are working hard today. At least it's no MC or V. For now.