Goldman Sachs’ Top Fund Manager Stock Picks: 25 Best Overweight Stocks

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Investors In Q2 2024: 163

Mutual Fund Overweight Percentage: 0.30%

Visa Inc. (NYSE:V) is the largest payment platform provider in the US. It commands a 52% share of the US credit card market by purchase volume and a 47% share by outstanding balances. This means that the state of the credit card market is key to Visa Inc. (NYSE:V)’s hypothesis. The firm, along with smaller rival Mastercard, has seen some tailwinds in these areas in 2024. While the pair agreed to a historic $30 billion settlement to resolve merchant grievances about high fees, the deal was stopped by a court despite the fact that many businesses had agreed to it. Further friction between Visa Inc. (NYSE:V) and merchants coupled with a rise in alternate payment networks could mean that the firm loses market share. Another point of friction between the firm and merchants is the 30 day liability protection, which protects customers from fraud but also exposes merchants to fraudulent claims. Visa Inc. (NYSE:V) can generate tailwinds by expanding into emerging markets and via new features that enable automatic payments.

Aoris Management mentioned Visa Inc. (NYSE:V) in its Q2 2024 investor letter. Here is what the firm said:

“Visa operates the world’s largest payments network, which facilitates the movement of money between merchants, financial institutions, consumers, businesses, and governments.

The company is best known for enabling consumers to make debit and credit card payments. In the year to September 2023, 4.3 billion Visa cardholders made 213 billion transactions on its network, to a total value of US$12.1 trillion.

Compared to cash and cheques, which are still widely used around the world, Visa’s network is a more convenient, secure, and ubiquitous way for consumers to pay. Visa has invested to reduce friction and fraud in the payments experience, to the benefit of both merchants and consumers.”

V is one of the top Goldman Sachs stocks that fund managers are buying. While we acknowledge the potential of V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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