Starter Stock Portfolio: 10 Safe Stocks To Invest In Now

6. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 142

Mastercard Incorporated (NYSE:MA) is a multinational payment services corporation in the United States. It facilitates electronic funds transfers through branded debit cards and credit cards. The company provides financial services to large companies, small to medium-sized enterprises, banks, credit unions, and the public sector.

In the second quarter of 2024, Mastercard Incorporated (NYSE:MA) increased its revenue by 13% and net income by 24% year-over-year. During the same quarter, the company managed $2.4 trillion in payment volume, up by 50% from five years ago. Other than payment services, the company is also venturing into value-added services like data analytics, fraud prevention, and cybersecurity solutions, which posted an 18% increase in sales in the previous quarter.

Mastercard Incorporated (NYSE:MA) aims to bring 1 billion people into the digital economy by 2025. To achieve such, the company launched several partnerships in the past few months. Earlier in August, Mastercard Incorporated (NYSE:MA) launched an Open Banking program to facilitate lending via digital verification of income and employment. During the same month, Mastercard Incorporated (NYSE:MA) launched its payment passkey service in India to improve security and improve payment speed.

While the macroeconomic environment is uncertain, the company does hold a strong position in the industry and has strategic initiatives locked in solidifying its future growth potential. Analysts are bullish on MA and their 12-month median price target of $528 points to a 10% upside from current levels. According to our database, 142 hedge funds held stakes in Mastercard Incorporated (NYSE:MA) in the second quarter, with positions worth $15.34 billion. As of June 30, Akre Capital Management is the largest shareholder of the company with a position worth $1.78 billion.

L1 Capital said the following about Mastercard Incorporated (NYSE:MA) in its Q2 2024 investor letter:

“The share prices of Mastercard and Visa, both long term Fund investments, have both drifted down over recent months. There have been no dramatic developments, but there has been a general slight softening in the rate of growth of consumer spending in the U.S. and globally, a court decision rejecting Mastercard and Visa’s proposed settlement of a long-lasting dispute with U.S. merchants as well as other modest adverse regulatory developments. We continue to view Mastercard and Visa as two of the highest quality businesses in the world, and both are well placed to continue to deliver attractive, risk adjusted returns to shareholders over time.”