Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.

Visa remains a high-quality business with very strong profitability, but the market has already priced this in with a noticeable premium. P/E of 31.1, P/S of 16.6, P/B of 19.2, and P/FCF of 34.8 are significantly above industry medians, indicating an expensive valuation and limiting the potential for re-rating. At the same time, earnings quality is indeed very high: ROE of 61.3%, ROA of 23.4%, and ROI of 39.3% are at an exceptional level and continue to improve compared with last year. Net profit margin of 50.8% and operating margin of 60.7% confirm sustainable pricing power and an efficient business model. Revenue, net income, and operating profit increased over the year, which supports the fundamental valuation and reduces the risk of a sharp downward revision. However, growth rates no longer appear to be accelerating, while valuation multiples remain very high, so for an investor the entry price matters more than further improvement in quality. The balance sheet is generally solid, but liquidity is not ideal: the quick ratio is zero, the current ratio is around 1, and debt-to-equity is above the industry median. Long-term debt and overall leverage do not look critical for Visa, but they add caution in the context of an expensive valuation. The dividend yield of about 0.18% is too low to materially support the investment case through cash return. The decline in cash on hand and assets amid business growth is not a warning sign in itself, but it does not add any argument in favor of a higher price. Overall, the fundamentals are strong, but they are already well reflected in the stock price, so only a moderate conservative downward adjustment to the forecast is warranted.

RVI-11.26

Visa Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Сильный индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Strong index, slightly up. Outflow of funds from longs at a high level.

Visa has outstanding profitability and earnings growth, but its valuation on a P/E, P/S, P/B, and P/FCF basis remains very expensive, and dividend support is minimal.

Key Points
Amazon, Coca-Cola, and Visa each show durable demand that could continue to grow.
Amazon’s revenue is surging, largely driven by insatiable demand for cloud services.
Coca-Cola and Visa are reporting solid results, with both businesses chasing opportunities for long-term revenue growth.
Amazon (NASDAQ: AMZN), Coca-Cola (NYSE: KO), and Visa (NYSE: V) are three members of the Dow Jones Industrial Average (DJINDICES: ^DJI) that continue to post solid financial results in 2026. These companies are unstoppable not because their share prices have been steady, but because each one has competitive advantages that can keep the business growing for years. Here's why they look like solid stocks to buy now.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
1. Amazon's cloud backlog is growing at triple-digit rates
Amazon is famous for its online store, but most of its revenue comes from cloud computing, advertising, fulfillment services, subscriptions, and hardware devices like Kindle. The stock has returned about 10% so far this year, slightly ahead of the Dow Jones Industrial Average's roughly 9% gain through mid-October, as of Oct. 15, 2026. Investors have worried about the heavy capital spending needed for cloud infrastructure, which is pressuring free cash flow.
But that spending is tied to the growing demand for artificial intelligence (AI) cloud services, with Amazon leading the cloud market. On the July 30, 2026earnings call CEO Andy Jassy said the cloud backlog stands at $496 billion and is growing in the triple digits year over year. Amazon's total net sales grew 20% year over year in the second quarter, with analysts expecting full-year sales to be up about 15% over 2025.
The long-term cloud contracts included in the backlog provide Amazon with clearer visibility into future revenue. At the Oct. 15 close of about $255, the stock trades at a forward price-to-earnings (P/E) ratio of 30, based on Wall Street's 2026 consensus earnings estimate, and 24 times next year's. Wall Street expects roughly 21% annual earnings growth over the next several years, according to consensus estimates. This valuation and growth could support market-beating returns over the next five years.
2. Coca-Cola is using digital tools to reach more consumers
Coca-Cola has a large portfolio of brands, including Powerade, Sprite, and Fairlife. The shares have returned about 34% year-to-date through mid-October, well ahead of the Dow Jones Industrial Average. That outperformance still leaves room for more upside as the company begins to leverage AI tools to drive more demand.
Demand looks healthy despite a weak consumer spending backdrop. Organic (non-GAAP) revenue grew 6% year over year, excluding the impact of acquisitions, divestitures, and foreign currency changes. This reflects a diversified portfolio of top brands that can meet demand for many different occasions.
It is leveraging digital tools and AI to enhance its marketing campaigns and better engage consumers. This effort targets the large share of beverage consumption in developing markets that goes unpaid, creating a substantial long-term growth opportunity for the company.
At the Oct. 15 close of about $92, the stock trades near a 28 forward P/E and offers a high trailing dividend yield of close to 2.3% -- more than double the S&P 500 average. The stock is unlikely to outperform over the long term at this valuation, especially given that earnings are expected to grow at only a single-digit annual rate. But this is a steady performer that offers a nice yield for investors seeking extra income.
3. Visa has captured only a small slice of its addressable market
Visa operates one of the world's leading payment networks, which powers its credit and debit cards, Visa Direct, and other value-added services. The shares have returned about 15% so far this year, ahead of the Dow Jones Industrial Average's roughly 9% gain through mid-October. Even after those gains, the stock is still fairly priced to reach new highs in 2027 and beyond.
Recent results showed continued momentum even as the payments landscape shifts toward agentic AI commerce, where bots can shop and complete orders autonomously for consumers. Net revenue rose 14% year over year in the fiscal third quarter of 2026. At the September Goldman Sachs conference, CEO Ryan McInerney noted that in key areas such as issuer services, acceptance, and risk and identity, Visa has captured only low-single-digit shares of the available opportunity.
The growing adoption of AI agents is an opportunity for Visa to see even higher payment volume over time, since these bots still need traditional payment methods like credit cards to make purchases. McInerney said Visa is "very optimistic" about this opportunity.
At the Oct. 15 close of about $400, the stock trades near a 26 forward P/E. Wall Street expects earnings to grow at an annualized rate of 14% over the next several years. That combination of value and growth should fuel more gains over the next five years.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 19, 2026.
John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Goldman Sachs Group, and Visa. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Unstoppable Dow Stocks to Buy Before October Ends

Key Points
The Solana blockchain generated more fees than any other last month, showing that people are paying to use its ecosystem.
Solana is taking market share in the stablecoin and real-world asset tokenization space.
Crypto prices are starting to recover after a year-long slump, and analysts -- some of whom make a living out of predicting the crypto weather -- think the clouds may finally be clearing.
The lead crypto Bitcoin has soared 28% in the past three months as of Oct. 16. Its cousin, Solana (CRYPTO: SOL), gained 40% over the same period, but the popular altcoin is still trading 65% below last year's all-time high.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
When an asset has fallen so dramatically, it's important to understand why and ask whether it still has legs. In Solana's case, the abysmal price performance does not reflect its ecosystem growth, transaction revenues, or evolving role in stablecoins and real-world asset tokenization, which are key long-term drivers for blockchain usage. That makes it an interesting prospect at its current price of around $105.
Solana's thriving ecosystem
Solana's most-talked-about quality is its speed. It is significantly faster than Ethereum and, in theory, can rival Visa in terms of transactions processed per second.
But I'm more excited about another metric: on-chain fees.
Why? Because it shows that people are paying to use Solana's blockchain. At the time of this writing, Solana had generated more fees than any other chain in the past 30 days. Solana's low fees make soaring revenue a clear sign of very high transaction volumes.
Blockchain
Fees in the past 30 days
Solana
$28.1 million
Tron
$23.9 million
Ethereum
$18.31 million
Another sign of Solana's strong use case is that established businesses are using it. For example, Samsung recently announced Solana would be one of its partners as it rolled out USDC stablecoin access through its Samsung Wallet.
Solana still doesn't hold a torch to leader Ethereum in terms of the amount of stablecoins on its chain, but its stablecoin issuance is growing -- it recently hit an all-time high of $16.5 billion.
Solana is also a key player in real-world asset tokenization -- using blockchain tokens to represent ownership of assets such as equities or bonds. It ranks third by total value of tokenized assets on its chain. This month, stock tokenization veteran Securitize rolled out Securitize Stocks on Solana with tokenized versions of 12 U.S. megacap stocks.
In short, the crypto price slump has not stopped Solana's growth. However, success is not guaranteed. Not only is Solana susceptible to the ebbs and flows of crypto sentiment, but its 2025 high was also driven by a spike in meme coin activity, the likes of which we may not see again. Unlike Bitcoin, which has gained some traction as a form of digital gold, Solana's growth depends on adoption and, as with any emerging technology, it isn't yet clear how this will evolve.
Solana could be too cheap to ignore
If you invest in stocks, there are vast swathes of ground between giants like Nvidia or Apple and penny stocks. That doesn't apply to cryptocurrency investing -- you only have to take a few steps down the top assets by market cap to reach extremely speculative and risky investments.
Solana is in a sweet spot: It's still risky, but the token also has a strong use case and more growth potential than Bitcoin. As a standout programmable crypto with a thriving ecosystem, Solana is worth a closer look for crypto investors willing to take on some risk.
Should you buy stock in Solana right now?
Before you buy stock in Solana, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Solana wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 18, 2026.
Emma Newbery has positions in Apple, Ethereum, Nvidia, and Solana. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, Nvidia, Solana, and Visa. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is Solana Too Cheap to Ignore at Today's Prices?

Key Points
American Express targets businesses and affluent consumers who are willing to pay for premium benefits.
One of Moody's biggest advantages is that the credit ratings business has relatively few major competitors.
Warren Buffett will go down in history as one of the best investors of our time. Over a 60-year career leading Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), Buffett time and again outperformed the stock market, and his investment philosophies have been closely watched and emulated for generations.
But the company under Buffett, and his successor, Greg Abel, isn't afraid to make big moves. Berkshire closed several positions in its portfolio this year, including selling its entire stake in credit card giants Visa and Mastercard. But it's not completely out of the credit business. It still has significant stakes in two companies that operate under different umbrellas in the credit space -- American Express (NYSE: AXP) and Moody's (NYSE: MCO).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Berkshire Hathaway holds 22% and 14% stakes in these two credit stocks. And both are prototypical Berkshire holdings in the style of Buffett -- with reliable earnings, competitive advantages, and businesses that can grow over decades. Let's take a closer look at them both.
American Express
American Express is a core Berkshire Hathaway holding. Buffett first bought shares in 1964 after a financial scandal sent the company's stock plunging, recognizing that its brand and customer relationships were worth far more than the market was valuing.
That investment worked out pretty well. Today, American Express is one of Berkshire's largest stock holdings, with a stake valued at more than $47 billion. And I think there's a good reason Buffett has remained so loyal to the company.
Unlike Visa and Mastercard, which primarily operate payment networks, American Express also issues cards and lends money directly to customers. That allows it to collect interest on outstanding balances, in addition to fees from merchants and cardholders, and provides another revenue stream to help beef up American Express' coffers.
American Express also targets businesses and affluent consumers who are willing to pay for premium benefits. Its revamped Platinum Card carries an annual membership fee of $895 -- a hefty price, but one that customers continue to accept in exchange for travel benefits and other rewards.
In the second quarter of 2026, American Express reported revenue of $19.6 billion, up 10% from a year ago. Card member spending increased 9%, while earnings per share climbed 11% to $4.53.
The company also raised its full-year revenue growth outlook to 10%.
I particularly like American Express's success in attracting younger customers. Millennials and Generation Z represent an opportunity to build relationships that could generate spending and membership fees for decades. Its premium customer base, recognizable brand, and multiple revenue streams make American Express an attractive long-term investment.
Moody's
Moody's isn't nearly as familiar to everyday investors as American Express, but it's a great company in its own right.
Moody's provides data, intelligence, and analytical tools, but it's best known for its credit ratings, which offer insights into the creditworthiness of companies, governments, and debt securities. Those ratings matter. A downgrade can make borrowing more expensive, while a strong rating can help companies raise money at more favorable interest rates.
One of Moody's biggest advantages is that the credit ratings business has relatively few major competitors. Moody's and S&P Global dominate the market, and it's not easy for a new company to break in. Investors and financial institutions rely on established ratings agencies to evaluate debt, giving Moody's a competitive advantage that's difficult to duplicate.
Moody's reported second-quarter 2026 revenue of $2.2 billion, an increase of 15% from a year ago. The results reflected growth in its ratings and analytics operations.
Berkshire continues to hold approximately 24.7 million shares, a stake representing nearly 14% of the company.
Two Buffett favorites worth keeping
There's a reason Buffett spent decades emphasizing companies with strong competitive advantages rather than chasing whatever stocks happened to be popular.
American Express has built a premium payments and lending business with customers who are willing to pay for its services. Moody's has established a valuable position in credit ratings and financial intelligence that's difficult for competitors to duplicate.
Both companies have demonstrated their ability to generate profits while protecting valuable positions in their respective markets. That's exactly the kind of business that long-term investors should consider for the long haul.
Missed AI’s "Act 1"? Act 2 Could Be 14x Bigger
Most investors think they missed the AI boat because they didn't buy Nvidia in 2005.
But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.
While everyone watches the chip designers, one "backbone" company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.
American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Mastercard, Moody's, S&P Global, and Visa. The Motley Fool has a disclosure policy.

2 Financial Stocks to Buy That Berkshire Hathaway Kept While Selling Visa and Mastercard

Key Points
Visa and Mastercard possess network effects, sizable growth runways, and incredible financials.
Ackman sees both of them posting high-teens earnings growth over the next three to five years.
During the second quarter, Pershing Square Capital Management, the hedge fund firm founded by Bill Ackman, initiated positions in Visa (NYSE: V) and Mastercard (NYSE: MA). While their share prices have appreciated in recent months, these businesses traded at attractive valuations at purchase.
Here are three reasons the billionaire investor is bullish on these two S&P 500 stocks.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Ackman's firm believes these are two of the highest-quality businesses on Earth. There are three notable factors supporting this view.
Visa and Mastercard, which connect consumers, merchants, and banks around the world, have developed robust network effects. This makes their platforms almost impossible to disrupt.
Another positive trait is that they still have sizable growth runways ahead. Pershing Square notes that card payment volumes only account for "half of addressable consumer spending globally."
Finally, these companies possess incredible financial profiles. Visa's quarterly operating margin has averaged 67% in the past five years, which is better than Mastercard's still impressive 58%.
Combined, Visa and Mastercard represent 11.4% of the hedge fund's portfolio. This gives Pershing Square meaningful exposure to the card payments industry.
The firm believes these businesses will post high-teens annualized earnings per share growth in the next three to five years. This bottom-line catalyst can be exactly what drives their stock prices higher in the future.
Should you buy stock in Visa right now?
Before you buy stock in Visa, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,470,022!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool has a disclosure policy.

Billionaire Bill Ackman Has 11% of His Hedge Fund in Visa and Mastercard. 3 Reasons Why the Famed Investor Is Bullish on These S&P 500 Stocks

Key Points
American Express is the last remaining credit card stock in Berkshire's portfolio.
The New York Times Company is bucking the trend of the struggling newspaper industry.
DaVita specializes in treating kidney disease and providing dialysis services.
One of the secrets of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) and its success in the stock market has been its focus on value. Whether led by former Chief Executive Officer Warren Buffett or its current leader, Greg Abel, Berkshire has always focused on buying stocks when they are significantly below their intrinsic value.
On top of that, Berkshire's management team has sought companies that have significant advantages over their competitors -- an economic moat -- operating in a mature industry with reliable cash flow.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That strategy has helped Berkshire Hathaway build an investment portfolio valued at about $350 billion -- and generate returns that averaged 19.7% during the past 60 years, nearly double the S&P 500's (SNPINDEX: ^GSPC) return.
In today's go-go market, which is focused so heavily on artificial intelligence, machine learning, and other technological advances, it's easy to forget that there are some great value stocks available -- and at comparatively dirt cheap prices. Three such stocks currently in Berkshire's portfolio are American Express (NYSE: AXP), The New York Times Company (NYSE: NYT), and DaVita (NYSE: DVA). Here's the case for buying and holding each of them right now.
Berkshire Hathaway stock No. 1: American Express
Berkshire Hathaway is deeply ingrained in the financial community. Its holdings include a significant stake in publicly traded companies such as Bank of America and Moody's, and it wholly owns several insurance companies, including GEICO. Until last year, it had stakes in American Express, Mastercard, and Visa.
But I've always believed that of the three, American Express is the superior stock. Apparently, Abel feels the same way, as he closed out Berkshire's positions in Mastercard and Visa in the first quarter.
I like American Express because of its market position -- it's geared toward more affluent customers with its gold and platinum card programs, both of which charge hefty annual fees. American Express increased its annual fee for its Platinum card to a whopping $895 earlier this year and offers perks valued at $3,500 to cardholders.
"Our platinum portfolio is now the fastest growing in our U.S. Consumer business; our best-in-class credit performance further strengthened; and we continued to attract a large number of new customers, particularly millennials and Gen Zs who represent greater lifetime value," CEO Stephen Squeri said.
Revenue in the second quarter was $19.6 billion, up 10% from a year ago, and net income of $3.11 billion was up 8%.
American Express is one of Berkshire's largest holdings, with 151.6 million shares, representing 13% of the company's portfolio. However, American Express stock is down 18% so far this year and currently sits 21% off its all-time high. But it's still my favorite financial stock in Berkshire's portfolio.
Berkshire Hathaway stock No. 2: The New York Times Company
We've all heard it: Newspapers are in trouble, and many have shut down -- about 3,500 in the U.S. alone, according to a Poynter study. The industry largely hasn't kept pace with the growth of digital media, losing both advertisers and subscribers.
But The New York Times has been able to buck that trend, embracing digital and capitalizing on its global brand. The company's newspaper had 13.35 million subscribers in the second quarter, with only 550,000 receiving printed copies.
Second-quarter revenue rose 11% from a year earlier to $762.5 million. And even though print advertising continued to decline, falling from $40 million to $35 million in a year, the company recorded a 21% gain in digital ads, bringing total ad revenue to $149 million, up from $134 million a year ago.
The company is a classic example of what Buffett and Abel appreciate: a well-run company with an economic moat that ensures long-term success. The shares are down 8% so far this year and 20% from their all-time highs.
Berkshire Hathaway stock No. 3: DaVita
Interestingly, Berkshire doesn't own many healthcare companies. It took a sizable share in UnitedHealth Group in the second quarter of 2025 before selling it less than a year later. And its Berkshire Hathaway Life company offers health reinsurance but not direct-to-consumer health coverage.
So DaVita holds a unique position in the Berkshire universe. The company focuses on kidney disease and chronic kidney failure, providing dialysis services and care, lab services, and research.
And that's an important field, particularly as the National Kidney Foundation estimates that 35.5 million U.S. adults have kidney disease, and one-third of adults are at risk from the disease.
Second quarter revenue rose to $3.55 billion, up from $3.20 billion a year ago. Net income was $343.2 million, up from $275.2 million in the second quarter of 2025, and diluted earnings per share were $4.02, up from $2.58 per share.
Unlike the other two companies on this list, DaVita is having a very good year, up 58%, but it's still 27% off its all-time highs.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $361,650!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,437,517!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 6, 2026.
Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Mastercard, Moody's, The New York Times Co., and Visa. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.

3 Berkshire Hathaway Holdings to Buy While They Sit at Least 15% Below Their Highs

Key Points
Buffett stepped away as Berkshire chairman on Sept. 18, nine months after stepping down as CEO.
Berkshire's large size will make it much harder to replicate historical results.
Berkshire's new CEO, Greg Abel, has made notable changes to Berkshire's stock portfolio.
On Sept. 18, Warren Buffett announced he would step down as chairman of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), nine months after stepping down as CEO. Calling Buffett's tenure at Berkshire amazing would be an understatement.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
From 1965 through the end of 2025, Berkshire's stock is up 6,099,294%, meaning a $1,000 investment then would've been worth $61 million at the end of last year. Talk about a return on investment.
Investors who were along for the ride have been rewarded handsomely, but newer and prospective investors may wonder whether Berkshire will continue its magic under new CEO Greg Abel. The answer is yes, but investors should manage expectations.
Repeating results is a very tough ask
During Buffett's tenure, Berkshire averaged 19.7% annual returns, well above the S&P 500's 10.5% average over the same period.
Unfortunately, Berkshire's performance under Abel likely won't come close to its performance under Buffett, and that has nothing to do with Abel. He's a Berkshire veteran and seems more than equipped to lead the conglomerate. The issue, however, is Berkshire's sheer size.
Going from a $20 million to a $1 trillion company is an amazing -- and generational -- accomplishment. Repeating those returns as a trillion-dollar company is virtually impossible. Over the past decade, Berkshire has underperformed the S&P 500 by 246% to 255%, and this year the stock is virtually flat through Sept. 28, while the S&P 500 is up over 12%.
Berkshire hasn't shown any signs of returning to the high-flying market-beater it was for many years under Buffett, but it doesn't have to be to remain a good investment.
The market is waiting for Berkshire to make a splash
We've begun to see the direction Abel wants to take Berkshire after some notable portfolio switch-ups since taking over. Berkshire dumped its entire stake in companies such as Amazon, UnitedHealth Group, Visa, and Mastercard, and doubled down on Alphabet (its third-largest holding) and companies in industries such as airlines and homebuilding.
Berkshire has been sitting on a massive cash pile for a few years ($365.6 billion at the end of June), and it seems the market is patiently waiting for Berkshire's next blockbuster(-ish) move. You don't want the company spending just to spend, but you have to wonder when "too much" is. In the meantime, rising interest rates will only increase how much Berkshire continues to earn from its cash pile.
You're never supposed to say never, but $1,000 invested in Berkshire today won't turn into $61 million again. I could, however, see it doubling in the next seven years, with Berkshire's stock averaging at least 10% annual returns over that time.
Comparing Abel's performance to Buffett's isn't fair because the market and Berkshire's scale are very different today than they were decades ago. I've been treating Berkshire Hathaway's stock as a defensive holding lately.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
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Stefon Walters has positions in Visa. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.

Warren Buffett's Record: $1,000 Became About $61 Million. Can Greg Abel Keep Compounding It?

In the latest close session, Visa (V) was down 1.79% at $359.33. The stock trailed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a tech-heavy index, added 0.24%.
The stock of global payments processor has fallen by 1.82% in the past month, leading the Business Services sector's loss of 5.76% and undershooting the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of Visa in its upcoming release. The company is forecasted to report an EPS of $3.43, showcasing a 15.1% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.07 billion, indicating a 12.59% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.22 per share and revenue of $45.83 billion, which would represent changes of +15.26% and +14.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Visa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. Visa is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 27.67. Its industry sports an average Forward P/E of 13.68, so one might conclude that Visa is trading at a premium comparatively.
It is also worth noting that V currently has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 0.76 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 33% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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Visa Inc. (V) : Free Stock Analysis Report

Visa (V) Falls More Steeply Than Broader Market: What Investors Need to Know

Tuesday, September 29, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Visa Inc. (V), Intuitive Surgical, Inc. (ISRG) and The Williams Companies, Inc. (WMB), as well as two micro-cap stocks: Friedman Industries, Inc. (FRD) and Jones Soda Co. (JSDA). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Rebound Moderately After Monday's Selloff
Today's Featured Research Reports
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+5.5% vs. -11.5%). The company’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity and rising transaction counts.
Fiscal Q3 2026 results showed broad momentum across consumer payments, commercial and money movement solutions and value-added services. Investments in agentic commerce and stablecoin settlement, along with targeted acquisitions and disciplined capital returns, should continue to enhance the value of its network over time.
However, rising client incentives and marketing expenses are weighing on V’s profitability, with adjusted net margin declining to 54.1% in fiscal Q3 2026. Cash activity remains uneven across regions, while the valuation remains elevated and regulatory and litigation risks persist. As such, we have a Neutral rating on the stock.
(You can read the full research report on Visa here >>>)
Shares of Intuitive Surgical have underperformed the Zacks Medical - Instruments industry over the year-to-date period (-26.8% vs. -3.8%). The company’s U.S. procedure growth has moderated in deferrable categories, bariatric volumes remain weak, and China faces lower tender activity, local competition and pricing constraints. Tariffs, product mix and the planned extended-use instrument program may also limit margins and instruments revenue per procedure. Hospital budget cycles can still disrupt placements outside the United States.
Nevertheless, Intuitive Surgical beat second-quarter estimates for earnings and sales. The company’s broad robotic platform, rising installed base and recurring revenue model support durable growth.
Da Vinci 5, SP and Ion adoption should widen procedure reach, while digital tools deepen customer engagement. Procedure growth remains healthy, and the balance sheet supports product development and manufacturing investment.
(You can read the full research report on Intuitive Surgical here >>>)
Williams Companies’ shares have outperformed the Zacks Oil and Gas - Production and Pipelines industry over the year-to-date period (+16.6% vs. +13.4%). The company being a premier energy infrastructure provider in North America delivered meaningful growth opportunities as second-quarter adjusted EBITDA rose 6% year over year, while its raised 2026 Adjusted EBITDA guidance signals healthy momentum ahead.
Williams Companies lifted its 2025-2030 EBITDA and EPS growth target to more than 11% annually. The Momentum acquisition expands its Haynesville footprint and adds fee-based cash flows, while Power Innovation and pipelines offer exposure to LNG, power and data-center demand.
However, debt-to-capitalization reached 64.7%, with 2026 growth capital spending of $7.3-$7.9 billion. A higher P/E leaves valuation high. Momentum carries integration risks, while Power Innovation remains unproven. Rising costs could also limit gains. A Neutral stance is well justified for Williams.
(You can read the full research report on Williams Companies here >>>)
Shares of Friedman have outperformed the Zacks Metal Products - Procurement and Fabrication industry over the year-to-date period (+99.5% vs. -8.3%). This microcap company with a market capitalization of $284.33 million has its investment case supported by the Century acquisition, improving capacity utilization and continued expansion of its flat-roll platform.
Broader product offerings, geographic reach and processing capabilities could strengthen customer penetration and support organic growth, while Sinton investments and improving tubular operations add further scale and diversification.
However, earnings remain sensitive to steel-price cycles, inventory movements, hedge timing and shifts in utilization. Higher working-capital needs, financing costs and a larger expense base could also pressure returns if demand or steel spreads weaken.
The current valuation suggests investors are recognizing FRD’s stronger earnings profile and growth investments, while still assigning a relatively measured value to the business given its cyclical exposure and execution risks.
(You can read the full research report on Friedman here >>>)
Jones Soda’s shares have underperformed the Zacks Beverages - Soft drinks industry over the year-to-date period (-8.1% vs. +13.9%). This microcap company with a market capitalization of $30.58 million faces risks from regulatory pressure on adult beverages, ongoing liquidity and working-capital needs, and continued reliance on major branded collaborations. Margin performance also remains sensitive to freight, input and royalty costs.
Nevertheless, Jones Soda’s investment case is supported by expanding retail, club and direct-to-consumer distribution, which is broadening access to its core beverages and collaboration-led products.
Branded partnerships are emerging as a repeatable growth platform, while Zero Sugar provides a more focused portfolio-extension opportunity following weaker performance from other newer categories. A broader North American footprint and improved e-commerce fulfillment could further diversify revenue channels.
(You can read the full research report on Jones Soda here >>>)
Other noteworthy reports we are featuring today include Cenovus Energy Inc. (CVE), The Hershey Co. (HSY) and W. P. Carey Inc. (WPC).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Hershey's (HSY) Salty-Snack Expansion Broadens Growth Platform
Per the Zacks analyst, Hershey's salty-snack expansion is likely to keep diversifying growth. In Q2, North America Salty Snacks sales advanced 22.9% and retail takeaway excluding LesserEvil grew 6.5%.
Rent Growth & Investment Activity Aid W.P. Carey (WPC), High Debt Ails
Per the Zacks analyst, W.P. Carey gains from rent growth, strong investment activity, long-term leases and diversified assets. However, debt burden and tenant credit issues pressure earnings.
Backlog & Unmanned Systems Drive Kratos Defense (KTOS) Growth
Per the Zacks analyst, Kratos Defense benefits from rising defense demand, a growing backlog and expanding exposure to unmanned systems, hypersonics, propulsion and rocket technologies.
Itron's Margin Strength and Pipeline Support Growth Outlook
Per the Zacks analyst, improved operating efficiency and a growing pipeline bode well. Itron expects contracted Networked Solutions deployments to drive the second-half revenue ramp.
Organic Growth Supports Bank of Hawaii (BOH) Amid Rising Costs
Per the Zacks analyst, Bank of Hawaii's organic strength is reflected in steady loan and deposit growth. However, rising technology and personnel expenses remain a key concern.
Ichor (ICHR) Rides on AI and Semiconductor Demand
Per the Zacks analyst, rising AI-driven semiconductor demand, stronger customer visibility and growing proprietary content are supporting Ichor's revenue and margin growth.
UVE Gains From Improved Underwriting, Premium and Policy Growth
Per the Zacks analyst, UVE gains from improved underwriting, premium and policy growth, while lower claims costs and investment income aid results. But acquisition costs and competition pose risks.
New Upgrades
Cenovus's (CVE) Long-Term Production Plan Supports Growth Outlook
Per the Zacks analyst, Cenovus' production growth gains momentum, with progress across key upstream projects. Its integrated business model is also a major positive.
Corcept (CORT) Rides on Robust Korlym Sales Performance
Per the Zacks analyst, Corcept's lead drug, Korlym, approved for treating Cushing's syndrome, is driving the top line. The FDA nod for Lifyorli in platinum-resistant ovarian cancer is a positive.
OPKO Health (OPK) Gains From Diversified Portfolio & Pipeline
Per the Zacks analyst, a diversified pharmaceutical portfolio, strategic partnerships, BioReference restructuring and advancing clinical programs are supporting OPKO Health's growth opportunities.
New Downgrades
Escalated Fuel and Labor Costs Hurt United Airlines (UAL)
The Zacks analyst is worried about high fuel costs, as these expenses represent a significant portion of an airline's total costs. High labor costs represent another headwind.
PHINIA (PHIN) Faces Sales Pressure from Weak China Vehicle Demand
Per the Zacks Analyst, PHINIA faces near-term growth headwinds as weak light vehicle demand in China pressures Fuel Systems sales, potentially offsetting gains in other segments.
LKQ Faces European Weakness Due to German ERP Rollout Disruption
Per the Zacks Analyst, LKQ's European business faces near-term pressure as the German ERP rollout and weaker U.K. and Benelux demand weigh on revenue, margins and growth.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Top Stock Reports for Visa, Intuitive Surgical & Williams Companies

Key Points
The Binance investment is really about distribution.
Circle is building an ecosystem around USDC, not just issuing it.
The long-term goal is to make USDC part of the plumbing of global finance.
When Binance invests $100 million in a company, investors should pay attention.
Binance is one of the world's largest cryptocurrency platforms. It recently bought $100 million worth of Circle Internet Group (NYSE: CRCL), the company behind the USDC (CRYPTO: USDC) stablecoin.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
But the $100 million isn't the most interesting part. The most important thing is what Binance can do for Circle. It could help put USDC in front of millions of people worldwide. And for Circle, that could be extremely valuable.
First, what is USDC?
USDC is a digital version of the U.S. dollar. Circle creates USDC tokens, and each token is designed to remain worth $1. So, unlike Bitcoin, USDC isn't supposed to rise or fall dramatically in value.
That makes it useful for moving money. For example, sending money from one country to another can involve banks, payment companies, currency conversions, and delays. USDC can move over blockchain networks at any time of day.
But Circle faces a simple challenge: Creating digital dollars is easy. Getting people to use them is much harder. That's where Binance comes in.
Why Binance matters
Think of Circle as the company making the digital dollars, and Binance as a huge marketplace where people can access them.
The two companies have worked together before. Now they have agreed to expand that relationship for another five years. Under the new agreement, Binance will promote USDC across its platform, while Circle will provide infrastructure to support USDC use. As noted, Binance also invested $100 million in Circle.
This gives Circle something it needs: distribution. The idea is simple: the more places people can use USDC, the more useful USDC becomes. And the more useful it becomes, the more people and businesses may want to adopt it.
That's how a potential network effect develops.
Circle doesn't get that distribution for free
There's an important detail buried in the agreement. Circle will pay Binance an incentive fee based on the amount of USDC held through Circle's wallet infrastructure. In simple terms, Circle is sharing some of its economics to encourage Binance to push USDC.
That's not necessarily bad. Visa and Mastercard also share economics with banks and other partners that distribute their payment networks.
But it tells investors something important about Circle: USDC growth comes at a cost. Circle doesn't control the entire customer relationship. It depends on exchanges, crypto wallets, banks, and payment companies to put USDC into people's hands.
The opportunity could be enormous
Circle already operates at significant scale. At the end of the second quarter, USDC in circulation reached $73.3 billion, while USDC transaction volume reached $14.8 trillion, up 151% from a year earlier.
Those numbers don't mean Circle will automatically dominate digital payments. But they show the scale of the opportunity. If more businesses begin using digital dollars for international payments, corporate cash management, financial transactions, and eventually tokenized assets, Circle could capture value at several points along the way.
To this end, Binance's deal helps target an important opportunity: emerging markets. In particular, sending money across borders can be difficult, especially in countries where banking systems don't connect smoothly with the rest of the world. A digital dollar could potentially make those transfers simpler.
Circle's recent decision to acquire Tazapay, a Singapore-based cross-border payments company, is another step toward expanding into emerging markets. For perspective, Tazapay connects businesses to local payment networks across more than 100 markets and has more than 60 banking and fintech partners.
What does it mean for investors?
The headlines focused on Binance's investment in Circle. But the more important message is this: Circle's long-term opportunity isn't simply to issue more digital dollars. It is to make USDC part of the plumbing of global finance.
In short, Circle provides the digital dollar, while Binance provides distribution. And the aim? To expand USDC quickly and build the next generation of financial infrastructure.
If they succeed, today's USDC business could become the foundation for a much larger payments and financial infrastructure company. And above all, it could be a foundation for Circle to create enormous shareholder value over time.
Should you buy stock in Circle Internet Group right now?
Before you buy stock in Circle Internet Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Circle Internet Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Mastercard, and Visa. The Motley Fool has a disclosure policy.

Binance Just Invested $100 Million in Circle Internet Group. Here's What It Really Means

Key Points
Stablecoins enable faster and cheaper transactions than wire networks.
Visa and Mastercard are embracing stablecoins rather than competing against them, but that strategy could compress their near-term margins.
Visa (NYSE: V) and Mastercard (NYSE: MA), the world's two largest card payment companies, have both delivered multibagger gains since their IPOs. Visa, which went public at a split-adjusted price of $11 in 2008, trades at nearly $370 per share. Mastercard, which went public at a split-adjusted price of $3.90 in 2006, has surged to more than $560 per share.
Visa and Mastercard don't issue any cards of their own. Instead, they partner with financial institutions to issue co-branded cards that are tethered to their card-processing networks. Those partners handle the accounts and take on the debt, while Visa and Mastercard charge a "swipe fee" (usually 1%-3%) for every transaction processed on their networks. Most of those fees are paid back to the card-issuing banks, while Visa and Mastercard keep a single-digit cut.
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That asset-light business model is well-insulated from credit crunches and recessions. Visa and Mastercard's near-duopoly in the card processing market also drives most merchants to accept their branded cards, even if they don't like to pay those swipe fees.
That stable growth and wide moat made Visa and Mastercard incredible long-term investments. From fiscal 2015 to fiscal 2025 (which ended last September), Visa's EPS (adjusted for stock splits) grew at a 15% CAGR. Mastercard's EPS rose at a 16% CAGR from 2015 to 2025. However, could the rise of stablecoins threaten their evergreen business models?
Why could stablecoins threaten Visa and Mastercard?
Stablecoins are cryptocurrencies pegged to a major fiat currency, such as the U.S. dollar or the euro, that can be bought, held, and spent without a bank account. Their issuers usually back those coins with reserves held in cash, Treasuries, and short-term investments.
Since stablecoins are traded on public blockchains rather than a traditional card payment network, their transactions can be settled nearly instantly at much lower fees. They can also be settled 24/7, 365 days a year, and deposited into third-party lending markets, automated market makers, and liquidity pools to earn higher yields than conventional savings accounts.
In theory, merchants can bypass Visa and Mastercard's "tollbooths" with cheaper, faster, and more flexible stablecoin payments. Stablecoin payments are also immediate and irreversible, eliminating the possibility of fraudulent chargebacks.
To counter this growing threat, Visa and Mastercard are integrating stablecoins directly into their payment processing networks to accelerate card-based transactions. By proactively adopting stablecoins to upgrade their backend software, which still mainly runs on legacy wire networks, Visa and Mastercard will prevent their platforms from becoming obsolete.
Why shouldn't Visa and Mastercard investors panic?
If Visa and Mastercard fully replace their legacy wire networks with stablecoin settlements, they would cannibalize their core profit engines. To offset that pressure (and the demands for lower swipe fees from regulators and merchants), both companies have been diversifying their businesses with more fraud-prevention, anti-money-laundering, and cybersecurity tools.
By embracing stablecoins, Visa and Mastercard would expand their total addressable markets by unlocking new payment volumes from businesses that previously avoided credit cards. It would generate lower revenue from those stablecoin-driven customers, but that higher volume of lower-margin transactions could offset its decline in higher-margin swipe fees.
The shift from wire networks to blockchain-based payments will likely squeeze Visa and Mastercard's near-term margins, but sitting still as stablecoin issuers like Circle (NYSE: CRCL) transform the payments market would be far more dangerous. That's why they've both been working with Circle -- instead of competing against it -- as the market evolves.
Visa and Mastercard have both underperformed the S&P 500 (SNPINDEX: ^GSPC) this year, as investors fretted over inflationary headwinds on consumer spending, regulatory demands to lower swipe fees, and future competition from stablecoin-driven platforms.
However, investors shouldn't consider stablecoins to be an existential threat to Visa and Mastercard just yet. Instead, they should see whether their stablecoin strategies attract new customers and widen their moats against newer, faster-growing fintech companies.
Should you buy stock in Visa right now?
Before you buy stock in Visa, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 28, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Visa Inc.

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