Visa Inc. (V): A Bull Case Theory

We came across a bullish thesis on Visa Inc. (V) on Substack by Jimmy Investor. In this article, we will summarize the bulls’ thesis on V. Visa Inc. (V)’s share was trading at $339.50 as of March 20^th. V’s trailing and forward P/E were 34.22 and 30.03 respectively according to Yahoo Finance.

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Visa (V) is undergoing a significant transformation, evolving from a payments giant into a broader financial infrastructure provider. By unbundling its platform and embracing open networks, Visa is positioning itself as the backbone of the digital economy, allowing fintechs, banks, and businesses to tap into its capabilities. This modular approach enables Visa to expand into new payment systems like account-to-account (A2A) transfers while ensuring that its core business remains intact and continues to thrive. The company sees a massive addressable market in consumer payments, with $23 trillion still locked in cash, checks, and outdated ACH systems. However, the real game-changer lies in New Flows—remittances, B2B payments, and disbursements—an opportunity worth $200 trillion. Visa Direct alone could capture $80 trillion, with commercial and virtual cards adding another $35 trillion in potential volume. Meanwhile, Value-Added Services (VAS) is emerging as a critical revenue driver, already accounting for 24% of Visa’s total revenue. Issuing services make up 40% of this segment, while Acceptance services contribute 30%, both growing at a double-digit pace. Tokenization, a key technology enhancing security and reducing friction in digital transactions, remains an untapped monetization opportunity. Visa aims to sustain high single-digit to low double-digit revenue growth by expanding its presence in consumer payments, growing New Flows and cross-border transactions, and driving adoption of VAS. With its unmatched scale, deep partnerships, and disciplined innovation strategy, Visa isn’t just maintaining its leadership—it’s redefining the future of global financial networks.

Visa Inc. (V) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 181 hedge fund portfolios held V at the end of the fourth quarter which was 165 in the previous quarter. While we acknowledge the risk and 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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Disclosure: None. This article was originally published at Insider Monkey.