V
🌐 Visa’s business model, processing digital transactions and taking a percentage, is largely insulated from physical goods tariffs and has proven resilient even in economic downturns like 2008.
📈 The company boasts an extraordinarily high gross margin (98%), indicating minimal direct costs susceptible to tariff impacts and significant pricing power.
🛡️ While not entirely immune to a broader economic slowdown affecting consumer spending, Visa’s core operations are less directly threatened by tariffs compared to companies reliant on physical imports, making it a relative safe haven.
@Artedeinvertir:
“Visa or Mastercard, we see that it has dropped, but almost nothing, eh? I mean, it dropped the week of February, then it had rebounded and dropped a little here, but it’s at $313 and it’s PER 26, which is its historical average valuation. So, you can’t say it’s perhaps too expensive either. But look at Visa’s gross margin data, and it doesn’t even handle a physical product, but it has a gross margin of 98%. I mean, it’s all profit. Then yes, you have to subtract central costs, but the operating margin is even extremely high. And Visa shouldn’t be affected much either; it might even benefit because although fewer products are sold, as the price would rise and they charge a percentage on the ticket the client pays, they always charge a percentage, so it’s protected against that hypothetical inflation. Even in the 2008 crisis, if we go here to observe Visa, it continued growing despite consumption slowing down. In fact, you see here in 2008 it invoiced 6 billion, then 6.9 billion, 8 billion; it simply happened that it grew a little less. But it’s one of the businesses most isolated from all these problems, Visa and Mastercard.”
Watch the exact part of the video where Arte de Invertir talks about Visa here:
Watch the video on YouTube
Read more articles analyzing Visa (V) at the following link. V stock.
