Recent stock market trends suggest that Visa and MasterCard, the leading companies in the credit card industry, may be on track to become trillion-dollar companies in the near future. Both companies have experienced substantial growth in their stock prices over the past few months, with MasterCard Inc. currently holding the 11th position and Visa holding the 7th position in terms of market value on the S&P 500 index. Their stocks have surged by approximately 50% in the last year, raising speculations that they could surpass the $1 trillion mark by 2023.
While there are no guarantees in the stock market, the current consumer behavior is favoring Visa and MasterCard. Despite challenges faced by the traditional retail sector, credit card companies have seen a positive impact on their business. The shift towards online shopping by consumers, as brick-and-mortar stores struggle, indicates a promising future for these two credit card giants.
As of the latest market close, MasterCard’s market value stands at around $324 billion, while Visa’s market value is approximately $449 billion. Currently, only Apple, Microsoft, and Alphabet are members of the trillion-dollar valuation club. Amazon briefly joined this elite group but experienced a setback that dropped its value below $1 trillion.
