1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders as of Q4: 51
Akre Capital Management’s Equity Stake: $1.95 Billion
Mastercard Incorporated (NYSE:MA), a leading multinational payment services corporation, continues to strengthen its position in the global payments industry, providing transaction processing and payment-related solutions to individuals, businesses, and organizations across more than 210 countries and territories. Mastercard remains a top stock to buy, with shares surging 4.9% to $575.90, marking its largest daily percentage gain since November 2022 and reaching a new all-time high. The stock’s rise followed the company’s strong fourth-quarter earnings report, which exceeded analyst expectations.
For the fourth quarter, Mastercard Incorporated (NYSE:MA) reported adjusted earnings of $3.82 per share, surpassing analysts’ estimates of $3.69. Net revenue reached $7.5 billion, also beating projections of $7.39 billion. The company saw robust growth in payment activity, with switched volume, representing the total value of transactions processed, rising 13% from the previous year, an acceleration from the 11% growth in the third quarter. Additionally, cross-border volume climbed 20% on a local currency basis, reflecting increased global spending and travel activity.
Mastercard’s strategic acquisitions and service expansions continue to drive long-term growth. CEO Michael Miebach highlighted the company’s diverse capabilities in payments, services, and solutions, emphasizing the recent acquisition of Recorded Future, a global threat intelligence company. He noted that these enhancements set Mastercard Incorporated (NYSE:MA) apart in the industry and contribute to sustained business momentum. Looking ahead, the company expects revenue to increase by a low double-digit percentage in the first quarter of 2025, with similar full-year revenue growth projections.
Throughout 2024, Mastercard Incorporated (NYSE:MA) demonstrated its commitment to shareholder returns, repurchasing 23 million shares of its common stock for $11 billion and distributing $2.4 billion in dividends. The company ended the year with a total debt outstanding of $18.2 billion, including $4 billion in newly issued debt. With strong financial performance, strategic expansions, and continued innovation in payment solutions, Mastercard remains well-positioned for future growth, making it an attractive investment option.
Overall, Mastercard Incorporated (NYSE:MA) ranks first on our list of top 10 stocks to buy according to Akre Capital Management. While we acknowledge the potential for MA 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 time frame. If you are looking for an AI stock that is more promising than MA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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