6. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders as of Q4: 181
Akre Capital Management’s Equity Stake: $1.03 Billion
Visa Inc. (NYSE:V), a global leader in financial services, specializes in electronic funds transfers and is headquartered in San Francisco, California. The company operates one of the most extensive payment networks, facilitating transactions through Visa-branded credit, debit, and prepaid cards. On January 30, 2025, Visa announced its first-quarter financial results, surpassing market expectations. The company reported earnings per share (EPS) of $2.75, exceeding analysts’ projections of $2.66, reflecting a 14% year-over-year increase. Net revenue also outperformed forecasts, reaching $9.51 billion, a 10% increase from the previous year and higher than the expected $9.35 billion. This strong financial performance was driven by increased transaction volumes and a rise in digital payments worldwide.
Visa Inc. (NYSE:V)’s strong fiscal first-quarter 2025 results reflected robust consumer spending, particularly during the holiday season, and an overall increase in payment volume. The company reported an 11% rise in net income, reaching $5.5 billion, alongside its 10% revenue growth. As digital transactions continue to gain momentum globally, Visa’s ability to leverage its vast network and technological innovations positions it well for sustained growth. By focusing on enhancing its payment ecosystem and strategic expansion, the company remains a key player in shaping the future of digital payments.
Visa Inc. (NYSE:V) is regarded as one of the top stocks to buy according to Akre Capital Management, potentially due to its dominant market position and consistent revenue generation. With 4.7 billion Visa cards accepted at 150 million merchant locations worldwide, the company earns revenue through transaction fees ranging from 1.5% to 3.5%. It has demonstrated remarkable resilience during economic downturns, including the COVID-19 pandemic and inflationary pressures, continuing to expand its revenue at an annual rate of 11% and earnings at 16% since 2014. These strong financial fundamentals reinforce its reputation as a reliable long-term investment.
Meridian Hedged Equity Fund stated the following regarding Visa Inc. (NYSE:V) in its Q4 2024 investor letter:
“Visa Inc. (NYSE:V) is the world’s largest retail electronic payments network. We hold Visa in the portfolio because of its formidable competitive moat, built on network effects spanning billions of cards and millions of merchants globally. The company continues to benefit from the secular shift toward electronic payments while expanding its portfolio to include high-growth adjacent offerings. While U.S. market penetration is mature, international markets—particularly in emerging economies, where cash usage remains prevalent— offer significant growth opportunities. Visa’s operating model demonstrates strong leverage, with incremental revenue efficiently flowing to the bottom line. This quarter, Visa outperformed expectations across key metrics, with payment volumes and transaction growth proving resilient despite macro uncertainties. Looking ahead, we anticipate continued momentum into fiscal 2025, driven by the ongoing transition to digital payments, international expansion, and the scaling of newer business lines.”
