Visa releases earnings later this week, and the company’s stock price has hit resistance ahead of the report.
This week, a Wall Street Journal report said the company would partner with JP Morgan and Bank of America banks on a digital wallet.
V – Weekly Chart
Visa stock hit the $250 all-time high and has pulled back to the $226 level.
The goal of the new partnership is for the big banks to take on Apple Pay and PayPal. Apple has 500 million users on its digital payments platform, and PayPal has over 400 million.
Wells Fargo will also be part of the new wallet with support from Mastercard. Early Warning Services LLC, a joint venture owned by the banks, already operates the Zelle Payments Network, and this will be expanded.
Visa releases its Q1 full-year 2023 earnings on Thursday after the market closes. Since the company’s IPO in 2008, Visa has returned 1,500% for investors. Even though a tough 2022 Visa managed to produce positive gains with an 8.5% return over the last 12 months, much better than the S&P return of -11%. That included a loss of 4% of revenues after the company pulled out of doing business in Russia.
Analysts expect Visa’s Q1 sales to increase by 8.8% to $7.7 billion. Earnings expectations are also strong, with forecasts of 10.5% growth to $2 per share.
The earnings will be necessary for Visa to see if the company can surpass the all-time high or begin a pullback.