MasterCard (MA) reached $571.93 at the closing of the latest trading day, reflecting a +1.52% change compared to its last close.
MA boosts shareholder rewards with a new $14B buyback and a 14% dividend hike as strong cash flow fuels continued capital returns.
Mastercard Inc. MA is trading below its 50-day and 200-day simple moving average (SMA), signaling a bearish trend. The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels.
MA's aggressive acquisitions and global partnerships are fueling its shift beyond cards into digital finance infrastructure.
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Mastercard has underperformed the S&P 500 and Magnificent 7 YTD; yet, its forward price-to-earnings multiple has contracted 10–15%. Value Added Services segment is growing at 25% YoY, outpacing the Payment Network's 12% YoY growth. VAS revenue nearly doubled from $1.77B (Q1/22) to $3.42B (Q3/25), with growth accelerating from recent acquisitions.
Mastercard continues to deliver strong double-digit top- and bottom-line growth, posting its 20th consecutive double-beat quarter with rising margins. Despite strong fundamentals, the stock trades at a significant valuation premium (33x forward P/E), limiting near-term upside and supporting a consolidation outlook. GDV and revenue growth remain solid, especially in value-added services, but US growth has slowed, raising questions about whether current performance justifies further multiple expansion.
Mastercard remains a high-quality compounder, delivering double-digit growth, ~60% operating margins, and robust free cash flow conversion above net income. MA's recent Q3 results highlight 17% revenue growth, strong cross-border and VAS momentum, and continued business diversification beyond the core card network. Despite premium valuation (FWD P/E ~33x), I maintain a Buy rating with a 12-month price target of $570, supported by resilient cash generation and disciplined capital returns.
Mastercard is rated Buy, supported by steady legacy business growth and rapid expansion in value-added services. MA's value-added services now comprise 38% of revenue, offering high-margin, fast-growing upsell opportunities. DCF analysis suggests MA's current $490B market cap reflects aggressive but warranted growth assumptions.
Mastercard demonstrates robust fundamentals, with resilient volumes, strong revenue growth, and expanding margins despite macroeconomic headwinds. MA's Q3 revenue grew 17% YoY to $8.6B, with broad-based strength across payment network and value-added services & solutions. Operating efficiency remains high; adjusted operating margin expanded 50 bps YoY, and cash flows hit all-time highs.
Mastercard Incorporated (MA) has vastly outperformed the S&P 500 since its 2006 IPO, but has underperformed of late. MA benefits from a wide moat, strong competitive advantages, and sustained high profit margins due to network effects and limited competition. Concerns over stablecoin threats are overstated, the proposed merchant settlement is a positive, and MA's current valuation is attractive.
Mastercard Incorporated (MA) Presents at UBS Global Technology and AI Conference 2025 Transcript