We recently published 10 Stocks On Jim Cramer’s Mind As He Gives Up On Becoming Fed Chair. Visa Inc. (NYSE:V) is one of the stocks Jim Cramer recently discussed.
Visa Inc. (NYSE:V) is one of the largest payment processing firms in the US. Its shares have gained 13% year-to-date but have lost 4.8% since early June. The stock tumbled after progress on the GENIUS Act in Congress, which paved the way for stablecoins and an alternative form of payment in America. While Cramer rarely comments on the impact of stablecoins, particularly on his favorite merger between Capital One and Discovery, he did discuss the deal’s impact on Visa Inc. (NYSE:V). He believes the firm won’t emulate the scale of the network that emerges from the Capital One deal:
“[On why Visa won’t emulate Capital One’s attempt to create a major network] Because, they’re just an exchange, they only want to take a piece. They don’t really want any credit risk.”
Copyright: sifotography / 123RF Stock Photo
Previously, the CNBC TV host discussed Visa Inc. (NYSE:V)’s valuation when compared to American Express:
“Okay, this is a very hard question because Visa and MasterCard are valued much more highly, I think, than American Express in terms of PE multiple. I want American Express of these three, and I’ll tell you why. I think America’s Express has got this younger demographic that is really exciting and not really built into the price-to-earnings multiple. That said, look, these are all great companies… I met with Mastercard’s management this week. I talked with Visa’s management. You’re not going to go wrong owning any one of these companies. They’re three of the best companies in America.”
While we acknowledge the potential of V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
