1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 163
Visa Inc. (NYSE:V) is a trusted leader in digital payments. The company facilitates transactions between merchants, consumers, government entities, and financial institutions across more than 200 markets. Visa’s journey started in 1958 when the Bank of America introduced the first consumer credit card program in the United States. It was in 2007 that Visa formed a global corporation and eventually went public in 2008 in one of the largest IPOs of all time.
With the ambitious purpose of being the best way to pay and be paid, Visa Inc. (NYSE:V) powers the global economy. The firm connects 4 billion account holders to more than 130 million merchants, 14,500 financial institutions, and governments. Among its peers in the transaction and payment processing services, Visa has a significant market cap of $540.20 billion. The firm accelerates its revenue growth in consumer payments, new flows, and value-added services.
In consumer payments, Visa moves trillions of dollars of consumer spending in cash and checks to cards and digital accounts. The firm recently closed a good fiscal third quarter of the year with net revenue growth of 10%. The key business drivers during the quarter were payments volume increasing by 7%, processed transactions increasing by 10%, and cross-border volume increasing by 14%, on a year-over-year basis.
Visa drove strong payments volume growth rates in most major regions including Latin America, CEMEA, and Europe ex U.K. Only Asia Pacific payments volume slowed due to the difficult macro environment in China. Beyond payments, the company is also building its portfolio of value-added services for its clients and partners. These value-added services offer the firm an opportunity to diversify its revenue.
Visa’s financials remain robust. The firm recorded $32.7 billion in net revenue and $12.3 trillion payments volume in 2023. In conclusion, the firm has a lot to offer through its globally spread reach, brand value, financial strength, and its leading market position. As of Q2, Visa Inc. (NYSE:V) is held by 163 hedge funds. TCI Fund Management was the largest shareholder in the company with a stake worth $4 billion.
While we acknowledge the potential of V as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
