Visa IPO...Overhyped?

peilthetraveler

peilthetraveler

Anyone else think that maybe this VISA ipo isnt going to be like mastercard? I mean, the day of the IPO Visa will have a market cap of about 18 billion. Mastercard right now has a market cap of 26 billion which assumming visa stays around the same cap as MA, I dont really see getting more than a 50% gain and everyone is hoping for a 5 bagger like MA. Will the hype push Visa to the 100 billion market cap? Any of you plan on buying the first day, or do you think that Visa will probably drop into the mid to low 30s before it starts going up? 400 million+ shares being sold really makes it hard to push a stock up me thinks. :)
 
Given the success of MA since its IPO, the hype is no real suprise. I was disturbed more that every perma-bull on tv used the hype of one IPO still signal the turn in the equity in the markets this morning and that the downtrend must be over.

Blue Skies....Blue Skies....
 
Given that Visa is bigger than Mastercard, you would think that VISA's price will raise to at least equal Mastercard's current market valuation.
 
So what'll happen to them when everyone defaults on their credit cards?

Wonder why they're trying to pass the bag to people all of a sudden after all these years? Could it have anything to do with this insane amount if credit card debt and defaults about the go off like a time bomb?

They can't be holding the bag on this. They need to sell some shares out to others so they can take the heat.
 
Not a great time for credit type players, IMO. The straw that breaks the camels back, IMO, is whether or not they just make fees from transactions, or if they actually have sub prime type exposure.
 
Quote from mschey:

Not a great time for credit type players, IMO. The straw that breaks the camels back, IMO, is whether or not they just make fees from transactions, or if they actually have sub prime type exposure.
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Good point.
 
Many think that since MA did very well since their IPO that V will have the same hype, suppose to be the biggest in history, should be interesting to see where it trades at the open, priced around 37-42 im sure it will close somewhere north of $50. I do think its overhyped myself...
 
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