Mastercard’s Record-Breaking Quarter Bodes Well For Rest of Year

Mastercard (NYSE: MA) reported earnings after the market closed on May 2, 2018, and it was a record-breaking quarter for the payment processor:

  • Record net revenue of $3.6 billion, up from $2.7 billion (31% increase year-over-year)
  • Record net income rose to $1.5 billion, up from $1.1 billion (38% increase YOY)
  • Diluted earnings of $1.41 per share, up from $1.00 per share (41% increase YOY)

If you’ll recall from a few weeks ago (and from my earnings reports on Visa (NYSE: V) and PayPal Holdings (Nasdaq: PYPL), Mastercard is part of my “War on Cash” basket with those companies and Square (NYSE: SQ). Similar to last week, shares were boosted slightly again with these results from Mastercard and Square (which I covered here), and the “War on Cash” thesis seems to be strong for at least another quarter. Continue reading “Mastercard’s Record-Breaking Quarter Bodes Well For Rest of Year”

What I Watch in My Stocks, Part 2

Note: This is a continuation of my post from yesterday. Feel free to go read the two introductory paragraphs there if you want to know the purpose of these posts!

Up first today are the four companies in my “War on Cash” basket, which is an idea that I I admit I’m stealing this idea from Jason Moser of The Motley Fool, who calls the “War on Cash” one of the more interesting developments in investing.

Mastercard Incorporated (NYSE: MA) [Earnings – May 2 Before Market Open (BMO] – For Mastercard, the word is CASH. Chances are, we are going to get further removed from using cash in our lives, so companies like Mastercard will benefit because it is their infrastructure that a cashless society will run. Mastercard is the second largest of the four companies, with $186.7B in market cap, $12.5B in revenue and $4.7B in income. This is the longest held of the four “War on Cash” companies that I own, and I plan on holding them for a while.

PayPal Holdings, Inc. (Nasdaq: PYPL) [Earnings – April 25 AMC] – PayPal joins Mastercard with the word CASH. A recent addition to the portfolio, I was simply rounding out the thesis behind the “War on Cash” basket mentioned above. PayPal was spun off from eBay a few years ago, and they have been successful in their own right since being granted its independence. It’s the third largest of the “War on Cash” companies, checking in with a market cap of $95.4B, annual revenue of $13.1B, and income of $1.98B. Continue reading “What I Watch in My Stocks, Part 2”