Visa Ipo

[Retired]

Visa will not be another MA. It's much too big, and hence more exposed to the weakening economy.

You should be able to pick it up cheaper after the IPO.

 

[BaileyMadison]

coud you explain how its more exposed and the reasoning behind it.


I'm expecting it to behave very similarly to MA.


thanks

 

[Retired]

Quote from BaileyMadison:

coud you explain how its more exposed and the reasoning behind it.


I'm expecting it to behave very similarly to MA.

thanks

I believe Visa has around 3 times the credit card market share of MA. In other words, there is not much room to grow competitively.

As a result, Visa's growth has to come mainly from the economy, which is in a slump at best.

When you're a small company, it's easy to defy the economy in terms of growth rate. But not so when you're a big company with a big chunk of the market share. Another example: Google.

In economics, it's called diminishing returns.