8. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders as of Q4: 181
Two Sigma Investments’ Equity Stake: $616.21 Million
Visa Inc. (NYSE:V), a leading multinational financial services corporation headquartered in San Francisco, California, specializes in facilitating electronic funds transfers worldwide. The company’s extensive portfolio includes Visa-branded credit, debit, and prepaid cards, making it a dominant player in the global payments industry. On January 30, the company announced its financial results for the first quarter of fiscal year 2025, surpassing market expectations. The company reported earnings per share (EPS) of $2.75, exceeding analysts’ forecasts of $2.66 and reflecting a 14% year-over-year increase. Net revenue also outperformed predictions, reaching $9.51 billion compared to the anticipated $9.35 billion, representing a 10% increase from the previous year.
Following the strong financial results, Visa Inc. (NYSE:V) stock responded positively, gaining 2.13% during regular trading hours and an additional 1.81% in after-hours trading. By the close of after-hours trading, the stock price stood at $349.25, marking a 3.94% increase from the prior closing price.
Visa Inc. (NYSE:V) remains optimistic about its performance for the rest of the fiscal year, projecting full-year adjusted net revenue growth in the low double digits and full-year adjusted EPS growth in the low teens. The company continues to prioritize innovation and the expansion of its value-added services to drive long-term growth.
CEO Ryan McInerney underscored Visa’s leadership in tokenization, stating, “We’ve now got more than 12,500,000,000 tokens across the ecosystem.” He also emphasized the transformative role of artificial intelligence in digital commerce and expressed confidence in Visa’s ability to navigate regulatory challenges.
Visa Inc. (NYSE:V)’s consistent revenue growth, strong financial performance, and ongoing innovation in payment technology make it an attractive investment option. With its leadership position in digital payments and a focus on expanding services, Visa is well-positioned for continued long-term success.
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.”
