Visa Stock Price Jumps 5% On Strong E-Commerce & Travel Return

Trade Visa Stock Your Capital Is At Risk
Ollie Martin
Updated: 28 Jan 2022

Key points:

  • Visa stock jumps 5% on positive Q1 earnings
  • Strong growth in e-commerce and a resurgance in travel were key benefactors this quarter
  • Visa posted net revenue of $7.1B at an increase of 24%

Following American Express and Mastercard, Visa (NYSE: VISA) was the last to report earnings this week. The company’s Q1 report was received well by investors; with stock price currently showing a premarket gain of just over 5%. 

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It has been a mixed week for the payment providers. American Express posted a steller revenue of over $12B, sending the stock soaring early in the week, yet Mastercard’s earnings were interpreted much more negatively, with price action driving the stock down around 2%. 

Looking across the earnings reports; similar trends vouch for an improving economic landscape, with a gradual shift in post-pandemic consumer spending providing a clearer picture of a return back to traditional spending habits. 

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Visa recorded growth across various sectors; payments volume, cross-border volume, and processed transaction growth all accelerated on a year-on-year basis – but it was the strong growth in e-commerce and a resurgence in international travel that bolstered the company’s Q1.

With a defiant Covid outlook, the company doesn’t expect rising cases to deflect an increase in international travel in the coming quarter, meaning that we might be a further increase from an already impressive 40% increase in cross-border volume. 

Visa posted net revenue of $7.1B at a rise of 24%, while net profit also improves 25% to $3.9B. The company beat Mastercard but didn’t come close to American Express – which targets a much more specific sector.

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